Treasury Holdings boosted by Chinese property portfolio
Published 12/01/2011 | 05:00
TREASURY China Trust (TCT), in which Treasury Holdings has a 30pc stake, has increased the value of its real-estate portfolio by 4.6pc for the 12 months ended December 2010.
The fund, which has a lower gearing ratio due to listing rules in Singapore, recently did a placing for about €15m to part-finance two new proposed acquisitions in Shanghai and Qingdao.
On completion of the acquisitions, gearing will then rise to just 34pc. TCT listed on the Singapore Exchange in June.
The company focuses on the ownership, development and management of commercial real estate in China.
The valuation was done by the independent valuation company DTZ Debenham Tie Leung.
Richard David, chief executive of TCT said: "TCT experienced strong operating performance across its portfolio during 2010, as represented by its average committed occupancy as at December 31 of 91pc -- an increase of 8.8pc over the past 12 months.
"This valuation result confirms the quality of TCT's commercial real-estate portfolio and its proactive asset-management framework, including the successful refurbishment of Central Plaza in downtown Shanghai during 2010."
Mr David added: "TCT has commenced development of its city-centre extension and Beijing Logistics park projects.
"Over their respective development periods, these will significantly add to gross asset value as they move from their current form of cleared sites to a combined development of over 150,000sqm of gross floor area. This will more than double TCT's current gross revenue upon completion in 2012.
"We are satisfied with this independent valuation assessment of our high-quality portfolio. It establishes a fantastic platform to integrate the recent announcement of two further proposed strategic acquisitions.
"Upon completion, they will add considerable balance sheet and revenue firepower for the group in the short term."
Treasury Holdings recently said it had signed a Memorandum of Understanding (MOU) with NAMA, following discussions on its business plan.
However, the Irish Independent understands that a disposal of Treasury's 30pc stake in TCT does not form part of discussions with NAMA in relation to the MOU and that Treasury remains a long-term shareholder in the Singapore-listed company.