News

Sime Darby Unit In Reverse Takeover Of Saizen REIT

Last update: 10/10/2016

KUALA LUMPUR, Oct 10 (Bernama) -- Sime Darby Bhd has announced the reverse takeover of Saizen Real Estate Investment Trust (Saizen REIT) by Sime Darby Property Singapore Ltd (SDPSL), an indirect wholly-owned subsidiary of Sime Darby Bhd.

In a filing to Bursa, Sime Darby announced the proposed disposal by indirect wholly-owned subsidiaries of Sime Darby Eastern Investments Private Ltd (SDEIPL) of 20 industrial properties located in Australia to Saizen REIT for a total of A$355.8 million (equivalent to RM1,119.2 million).

SDEIPL is an indirect wholly-owned subsidiary of Sime Darby and the vendors collectively are Hastings Deering (Australia) Ltd and Austchrome Pty Ltd.

SDEIPL and Sime Darby Property Singapore Ltd, another indirect wholly-owned subsidiary of Sime Darby, entered into an implementation agreement with Japan Residential Assets Manager Ltd (JRAM) (in its capacity as manager of Saizen REIT) and Perpetual Corporate Trust Ltd (in its capacity as trustee of Sime REIT Australia) in relation to the property disposal and reverse takeover of Saizen REIT by SDPSL.

"The proposals are in line with Sime Darby's corporate strategy to develop a REIT platform, in order to generate a resilient and recurring income stream.

"Moving forward, this REIT platform is expected to have greater flexibility in its future fund-raising exercises to build a sizeable international portfolio of assets, which Sime Darby will benefit from its indirect stake in Saizen REIT," it said.

In addition, the proposals, it said, would enable Sime Darby to monetise the properties, while de-leveraging its balance sheet.

"This will further allow Sime Darby to re-allocate capital and drive continuous improvements in financial and operational efficiency," it said.

-- BERNAMA