Singapore Corporate News - 19 Oct 2007

A-Reit in development projects totalling $277m

ASCENDAS Real Estate Investment Trust (A-Reit) yesterday announced new investments for development projects at Changi Business Park and in Jurong totalling $277 million, including about 42,000 square metres of built-to-suit (BTS) business park space at Changi Business Park pre-committed to a 'leading international financial institution'.

The trust did not identify the party but market watchers said that it may be Citibank.

Giving details of A-Reit's new investments, the trust's manager Ascendas-MGM Funds Management said that they include the development of Changi Business Park's Plot 8 into three business park buildings - two BTS buildings and a multi-tenant block with an amenity podium. These buildings are on land of 29,864 sq m with 30 + 30 year tenure and will have a combined gross floor area of 74,660 sq m (803,633 sq ft).

The BTS portion pre-committed to the financial institution will be built in two phases, the first slated for completion in the first quarter of 2009 and the second in Q4 2010.

The multi-tenant building, with a gross floor area of about 33,000 sq m, will have about 6,000 sq m of amenity space to cater to the increasing population at Changi Business Park. The project is expected to be ready in second-half 2009.

The total cost for all phases of the development is $191 million.

Over at Pioneer Walk in Jurong, A-Reit will develop industrial space on a 36,600 sq m plot with a 30-year tenure.

On completion, the project will have 80,609 sq m of lettable floor area in two blocks of six-storey, ramp-up high-specification space.

Costing $86 million, the development will be built in two phases and is scheduled for completion in Q3-Q4 next year.

Eighty per cent or 28,376 sq m of phase 1 space has been pre-committed and 40 per cent or 18,396 sq m of phase 2 is under offer.

A-Reit also said yesterday that it renewed and signed new leases, including expansions, for a total net lettable area of 71,433 sq m in the quarter ended Sept 30. The overall portfolio occupancy rate increased to 98.3 per cent as at that same date, from 97.2 per cent a year earlier.

Keppel Nantong wins three contracts worth $110m

WITH oil fetching record prices, the offshore marine industry remains buoyant with Keppel Corporation's Nantong shipyard in China clinching three contracts for eight tugs worth $110 million.

The first contract, from Netherland's Smit International Beheer BV, is for Keppel Nantong Shipyard to build two 90-tonne bollard pull offshore support tugs. Delivery of the two tugs, which will be be deployed in West Africa and will have anchor handling, diving support and fire fighting capabilities, is expected in the first half of 2010.

The second and third contracts are for joint ventures of Keppel and Smit - namely Keppel Smit Towage and Maju Maritime. Keppel owns 51 per cent of each of the two companies with Smit having the remaining 49 per cent.

Each contract is for the construction of three 65-tonne bollard pull twin-screw Azimuth Stern Drive (ASD) tugs. To be delivered progressively in 2011, these tugs will be built in accordance with the MTD 3265ST design, developed by Keppel Offshore & Marine's (KOM) technology unit, Marine Technology Development (MTD).

Acquired by KOM only two years ago, wholly-owned Keppel Nantong has an order book worth just under $400 million. Situated along the Chang Jiang River, about 110 km north-west of Shanghai, the yard constructs specialised vessels such as offshore support boats, including tugs.

A repeat customer of Keppel, Smit Internationale Beheer is a division of Dutch company, Smit Internationale NV, and is engaged in services relating to transport barges, tugs, support vessels and self-propelled floating sheerlegs.

Including the latest contracts, Keppel, the world's largest builder of offshore oil rigs, has an order book of some $11.1 billion of which $4.4 billion were secured just this year alone. It has a global network of 20 yards in Asia, Gulf of Mexico, Brazil, the Caspian Sea, Middle East and the North Sea.

Seksun to sell most of its assets and business for $295.1m

MAINBOARD-LISTED Seksun Corporation yesterday announced that it has agreed to sell substantially all its assets and business undertakings for $295.1 million to Supernova (Cayman).

Once the sale is completed, Seksun, a manufacturer of high-precision components for the hard disk drive industry, will try to distribute about $270 million of the net sale proceeds to its shareholders, it said.

The purchase price of $295.1 million represents a 97 per cent premium over Seksun's net tangible assets as at June 30, 2007.

Swissco orders 4 new vessels for $11.2m

SWISSCO International has ordered four new vessels to add to its growing fleet of offshore support craft, at a cost of $11.2 million.

The orders were placed through its wholly owned subsidiary, Swissco Offshore Pte Ltd.

The first order, for two identical offshore utility vessels, has been placed with a shipyard in Guangzhou, China. They are expected to be delivered in first-half 2009.

The second order, for two identical multi-purpose workboats, has been placed with a shipyard in Miri, East Malaysia. The vessels will be equipped for work in shallow waters in the oil-and-gas sector as well as marine construction. They are expected to be delivered in second-half 2008.

The new vessels are being funded internally and through bank borrowings.

Swissco has been busy adding to its fleet. Last month, it ordered two offshore support vessels at a cost of $15 million.

The group now operates 25 vessels and expects to take delivery of five more in 2007, 12 in 2008 and two in 2009.