SG briefs: ST Engineering, Keppel DC REIT, Parkway Life REIT, Tung Lok, Yongnam

Traffic lights. Photo by David Guenther on UnsplashTraffic lights. Photo by David Guenther on Unsplash

Singapore company briefs: ST Engineering, Keppel CD REIT, Parkway Life REIT, Yongnam Holdings and Tung Lok Restaurants.

Keppel DC REIT

Keppel DC REIT said Friday occupancy of its Basis Bay Data Centre in Cyberjaya, Malaysia, has faced dampened leasing momentum due to expected new supply in 2022 and 2023. The REIT noted CBRE estimates market occupancy in Malaysia was in the mid-60 percent range as of 2020. Basis Bay Data Centre had occupancy of 63.1 percent as of end-2021, according to the REIT’s annual report.

The REIT, highlighting that the asset is less than 1 percent of the assets under management (AUM) as of end-2021, is working with multiple leasing agents on the asset, according to a filing to SGX Friday with answers to shareholder questions before the annual general meeting (AGM).

“Market drivers such as continued growth in the digital economy and digitalisation are nonetheless expected to support demand for data centres in Malaysia,” Keppel DC REIT said.

ST Engineering

ST Engineering highlighted Saturday that its five-year plan, updated in 2021, is focused on four strategic themes: Riding the aerospace recovery in commercial aerospace, driving growth in smart cities, expanding the international defense business and strengthening the core businesses. 

Since then, the company has made one acquisition, of TransCore, which is expected to be cash flow positive from the first year and earnings accretive from the second year, ST Engineering said in a filing to SGX with answers to shareholder questions before its annual general meeting (AGM).

“TransCore is an excellent fit for our Smart City business, in particular our Smart Mobility business. Its road transportation solutions will enhance our suite of Smart Mobility solutions, and its leading position in the end-to-end electronic toll collection and congestion pricing segments in North America would present growth opportunity for ST Engineering,” the company said in the filing. 

Read more: UPDATE: ST Engineering to acquire TransCore from Roper Technologies for US$2.68B

Parkway Life REIT

Parkway Life REIT said Thursday that its MOB Specialist Clinics property in Kuala Lumpur, Malaysia, saw its occupancy drop to 31 percent due to the non-renewal of the level 8 space, which was mainly an auditorium layout. 

“Due to the current leasing market conditions impacted by Covid-19, it was challenging to lease the Level 8 space with the auditorium configuration. To make Level 8 space more marketable, we had the auditorium reconfigured into more medical suite units,” the REIT said in a filing to SGX with answers to shareholders’ questions ahead of its annual general meeting (AGM). “We are actively marketing the new medical suite units and expect occupancy rate to improve as Malaysia eases into reopening its borders.”

The property is the REIT’s only asset in Malaysia, out of a total 56 properties in the portfolio, according to Parkway Life REIT’s website.

Tung Lok Restaurants

Tung Lok Restaurants said Friday it entered into a three-year lease deal with Novena Point, for space in the Square 2 mall, with estimated rental fees of S$914,000 over the course of the contract, in an interested person transaction. The location will be used to open a Lao Beijing restaurant, the restaurant-operator said in a filing to SGX.

The Estate of Ng Teng Fong (ENTF) and Mr. Philip Ng Chee Tat (NCT), who are controlling shareholders of Tung Lok Restaurants, hold all of Novena Point, the filing said.

Yongnam Holdings

Yongnam Holdings said Thursday a bondholder has exercised the right to convert S$320,000 of bonds, and was issued 6.4 million conversion shares at S$0.05 each. 

The conversion reduced the principal outstanding on the bonds to S$6.92 million, from S$7.24 million, Yongnam said in a filing to SGX.

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