Singapore Land Acquisition

Singapore Land Acquisition

09-Jul-2007

Thakral Holdings Group has announced today that it has made its first overseas investment, acquiring a 48,000 square metre site in Singapore for AUD$17 million from Lim Manufacturing, a warehousing and logistics services business in which the Thakral family has a 50% interest.

As part of the transaction, Thakral has obtained an independent valuation to support the acquisition price and negotiated a two-year leaseback agreement, which will generate a gross yield of 6.5% per annum. Over this period, Thakral will assess a number of major redevelopment options for the Jurong-based warehouse factory site.

Thakral’s Managing Director, John Hudson, said, “Two weeks ago, Thakral announced an increase in its property portfolio of $212 million following the completion of our annual independent property valuations. Over the past two years, as a result of the strong underlying performance improvements coupled with a firming of yields, Thakral’s portfolio valuation has risen from $764 million to $1.12 billion, an increase of 46%. As a result, the Group’s gearing level as at 30 June 2007 is below 40%, which gives us a fairly substantial borrowing capacity.

“Consequently, over the past 12 months, we have been actively seeking potential overseas property investments that could generate above average returns for our shareholders. The Singaporean deal marks our first overseas acquisition and, while Thakral remains keen to invest in Australia, it is likely that there will be more offshore opportunities in the short to medium term,” said Mr Hudson.

Thakral will be announcing its full-year results on 17 August 2007.

Please provide us with your confirmation of release announcement.

Yours faithfully

 
Andrew Horne
Group Company Secretary

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