Another bad news is Microsoft Operations Pte Ltd which contribute around 3% FCOT gross rental income has exercise option to per-terminate its lease in Alexandra Technopark and it will end by Jan 2020.
There are 2 AEI in progress
- China Square Central that cost $38m
- Central Park that cost $11.5m
Those AEI need $$$ which might explain the debt has gone up from previous 610m to 627m.
From the portfolio, filling 40% vacancy space in Alexandra Technopark will not totally help the gap, Total NLA is around 1m sq ft so 40% will be around 400k sq ft and multiply by rent based on slide 35 will just net around $1.5m gross rental.
I am really guessing they will do some acquisition as I don’t think the current dividend is sustainable as the management fees already paid 100% in unit and the gain of disposal left around $17m which might only last 3-5 quarters.
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