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KL’s Lot 10 Property owner announces first perpetual bond issuance

KUALA LUMPUR (Dec 10): YTL Corp Bhd-controlled Starhill Global Real Estate Investment Trust (Starhill Global REIT), the assets of which include the Lot 10 Property and Starhill Gallery here, has announced its maiden issuance of perpetual securities or bonds worth S$100 million (about RM304 million) to enhance the financial flexibility of the property trust and diversify its funding sources.

In a statement to the Singapore bourse yesterday, YTL Starhill Global REIT Management Ltd, the manager of Starhill Global REIT, said the issuer had priced the S$100 million Series 002 perpetual securities with a coupon payment or annual interest payment of 3.85%.

"The Series 002 perpetual securities will have no fixed final redemption date and confer a right to receive distribution payments.

"The Series 002 perpetual securities will be issued under the S$2 billion (S$2,000,000,000) multi-currency debt issuance programme established by the issuer and Starhill Global REIT MTN Pte Ltd on Jan 3, 2020.

"Oversea-Chinese Banking Corp Ltd (OCBC Bank) has been appointed as the sole lead manager and bookrunner of the Series 002 perpetual securities and will offer the Series 002 perpetual securities primarily in Singapore pursuant to the exemptions invoked under Sections 274 and 275 of the Securities and Futures Act, Chapter 289 of Singapore,” YTL Starhill Global REIT Management said.

According to YTL Starhill Global REIT Management, net proceeds from the issuance of the perpetual securities will be used by the issuer and its subsidiaries to refinance existing borrowings of Starhill Global REIT, as well as meet capital expenditure requirements and finance working capital purposes of the property trust.

The Series 002 perpetual securities are expected to be issued next Tuesday (Dec 15) and listed on Singapore Exchange Securities Trading Ltd (SGX-ST) on or near the business day after such an issue, YTL Starhill Global REIT Management said.

"Distributions under the Series 002 perpetual securities shall be payable semi-annually in arrears on June 15  and Dec 15 of each year, commencing on June 15, 2021 unless deferred in accordance with the terms and conditions of the Series 002 perpetual securities.

 "Any distribution unpaid in accordance with the terms and conditions of the Series 002 perpetual securities will be non-cumulative, and the issuer is not under any obligation to pay that or any other distributions that have not been paid in whole or in part.

"The issuer may, by giving not less than 30 nor more than 60 days’ notice to the perpetual securityholders (whose notice shall be irrevocable), redeem all or some only of the Series 002 perpetual securities on Dec 15, 2025 or on any distribution payment date thereafter and otherwise upon the occurrence of certain redemption events specified in the terms and conditions of the Series 002 perpetual securities and in the pricing supplement," YTL Starhill Global REIT Management said.

According to Starhill Global REIT’s website, YTL Starhill Global REIT Management is a wholly-owned subsidiary of YTL Starhill Global REIT Management Holdings Pte Ltd, which is in turn an indirect subsidiary of YTL Corp.

YTL Starhill Global REIT Management said on the website that since the listing of Starhill Global REIT on the Singapore bourse on Sept 20, 2005, the property trust had grown its initial portfolio from interests in two properties on Orchard Road in Singapore to 10 properties across Singapore, Australia, Malaysia, China and Japan.

Its global real estate assets were collectively valued at about S$2.94 billion as at June 30, according to YTL Starhill Global REIT Management.

On Bursa Malaysia today,  YTL Corp's share price had risen one sen or 1.46% to 69.5 sen as at 11.30am, which brought the group’s market capitalisation to about RM7.65 million.

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