Singapore Corporate News - 17 Mar 2008

CCT MTN issues $150m fixed rate notes due 2010

CAPITACOMMERCIAL Trust (CCT) has announced that CCT MTN Pte has issued $150 million of fixed rate notes due in 2010.

CCT MTN is a wholly- owned subsidiary of HSBC Institutional Trust Services (Singapore) Ltd, which in turn is the trustee of CCT.

The notes were issued under the $1 billion multi- currency medium-term note programme established by CCT MTN on Nov 20 last year.

DBS Bank Ltd has been appointed as dealer of the notes.

The notes will mature on March 17, 2010 and will bear a fixed interest rate of 3.05 per cent per annum payable semi-annually in arrears.

CCT MTN will lend the proceeds to HSBC Institutional Trust Services, which will use the funds to refinance short-term borrowings; finance the acquisition of the Wilkie Edge property in the Selegie area as well as asset enhancement works; and for general working capital purposes. After the issuance of the notes, CCT's gearing will be 26.9 per cent - still one of the lowest amongst Singapore real estate investment trusts (Reits), the statement said.

The Singapore Exchange (SGX) has given in-principle approval for the listing of the notes.

CCT posted distributable income of $32.3 million in last year's final quarter, an increase of 14.5 per cent from a year ago.

Full-year 2007 distributable income rose 52.7 per cent to $120.4 million on the back of a 54.2 per cent jump in gross revenue to $240.1 million.

The trust also reported $1.3 billion fair value gain on the revaluation of its investment properties, boosting its total asset size to $5.3 billion as at the end of December 2007.

The trust has secured commitments for more than half of the 9,600 sq m office space at Wilkie Edge, ahead of the development's completion expected in Q4 this year.