Proposed Acquisition of Seagate R&D Facility (The Shugart for S$218.2M)

Um, Kip, please. Yes, thanks Darren, and good morning everyone. Um, this morning we are pleased to announce the proposed acquisition of Seagate Singapore r and d facility for 218.2 million. Our discussion today will cover the following details of the acquisition, the key merits, performer impact, and the benefits to capital land industry and our unit holders desk. We are acquiring Seagate Singapore, r and d facility, which is situated in the one north the street in Singapore for 218.24 million.

This is a 5.1% discount to the independent market valuation of 230 million.

It will further expand our footprint in the one north area. It will strengthen the portfolio and it will provide income stability. This acquisition enables us to strengthen our foothold in the one north, the street in Singapore, a highly sought after r and d and technology location. The one north the street was developed by J D C corporation as a research and innovation business hub, fostering r and d and high technology in biomedical and life sciences, incom Media Science and engineering.

It is home to a large concentration of world renowned multinational and local technology firms such as the cgroup, Aquanet, St. Telemedia and Razor. The proper property is centrally located within a four minute drive to the I Raja Expressway and a 15 minute drive to the C B D. It is also a convenient 10 minute walk to the one north m RT station. Next, this acquisition will further solidify our market leadership position in the one now the street.

Currently we have five properties in the area. The properties are starting, uh, from the top, uh, of the Mac. You will see neurons, ands, nucleus, Galaxis, nexus, and gram at the bottom of the map. With the proposed acquisition class footprint in the one North district, were increased by 13% in terms of a u m to $1.9 billion. And in terms of N L A, it will increase by 21% to 2.5 million square feet.

This and large footprint in the one north the street further enhances class presence in the resilient business park sector in Singapore, where we are the largest operator, POI and positioning CLAR to further strengthen both our portfolio and tenant base. Okay, the, the property in one north, um, serves as Seagates primary r and d location outside the United States.

It comprises a six story podium and a nine story tower. Specifications include r and d clean room and data center space for Seagate Singapore operations. Other features include a sky garden, multipurpose sports hall, and gymnasium for its employees. The Seagate's r and d facility was newly built about eight years ago. Now, Seagate will lease back the property for 10 years with a built-in rent escalation of 2.5% per annum, which will provide income, stability and resilience to the portfolio.

In addition, there will be an option to renew for another 10 years. So class portfolio will will increase from 3.8 years to 3.9 years. The first year N P I U is attractive at 8.3% quick transaction cost and 7.8% post transaction costs based on the funding structure of 60% equity and 40% debt. The performer impact on D P U is expected to be the acquisition is expected to generate an additional 0.11 cents Singapore cents or a DPU acquisition of 0.7%.

In summary, the acquisition of Seagate Singapore r and d facility is a strategic fit with our existing portfolio. Singapore remains one of our core markets and we are scaling up our presence with a highly sought after asset in the heart of the r and d and technology district at one north. The proposed acquisition is a continuation of our value creation efforts to grow class portfolio with good quality assets that have long-term growth potential and income stability.

The acquisition involves the leaseback of the property to seek it for 10 years with an option for an additional 10 years, which will generate an attractive long-term stable return. The acquisition is d and we know that it will contribute positively and provide us with steady long-term returns. So in addition to the proposed acquisition of CJs r and d, um, facility that we have just discussed, we have other plan initiatives. Uh, may I refer you to the launch of private placement announcement, page four.

The second initiative that we have is a potential acquisition in Europe. We have entered into an exclusivity agreement for a potential Euro acquisition that is located in a key gateway city within class existing geographic footprint. It is subject to satisfactory due diligence. The potential acquisition in Europe is in line with our strategy to penetrate deeper into class existing asset classes and footprint within Europe, comprising updated centers and logistics properties.

We expect the property u to be attractive and the transaction to be D P U. The third initiative is to redevelop a logistics property in Singapore. The property is strategically located with excellent connectivity to major expressway. The redevelopment provides an opportunity for CLA to maximize and optimally utilize the plot ratio that is presently untapped. The plan is to de redevelop the property into a much larger 50,000 square meters, modern six story high specification ramp up logistics facility.

It'll have improved specifications such as dedicated loading base power provision and large contiguous floor plates to cater to the evolving requirements of end users and third party logistics providers. When completed in four Q 2025, the target stabilized yield on cost is about 7.5 to 8.5%. This will strengthen the properties quality and turn unlock further value for Unitholders desk.

The fourth initiative is to repay some debt that was previously drawn down for investments development and edis. This will strengthen our balance sheet and enhance our financial flexibility. Um, the matter of financing these initiatives are found on page seven of the launch of private placement announcements. Um, if you were to look at the first row, about 139.5 million will be for the Seagate, uh, Singapore r and d facility, the second row, 129.9 million for the potential Euro acquisition. Third row, 64.4 million for the redevelopment of the Singapore logistics property. And lastly, the balance of 108.5 million for debt repayment.

The plan itiatives will generate D P U acquisition and improve the leverage from 38.2% to 37.6%. So this brings us to the end of the presentation.

And the third question is, uh, what's the zoom boring cost in your role and sing dollar? Thanks. Thanks, Terence. Good morning. Uh,

I can't tell you today because there is no application from us or anybody to request for land extension. Uh, but this being one of the key innovation hub of the Singapore government, uh, likely to be so, uh, for much more, the much more time than we have on the current lease. So we do expect that we have a good chance, uh, for the Atlantic extension, uh, as if we are caught in our previous discussion.

It always goes back down to the tenant, the quality of tenant, the investment. And if Seagate continues, I think that's, that put us in a very good sh uh, uh, uh, position to extend the land. Uh, ask, skipping to answer your third question on boring cross. Sure. Um, okay. So when we first, uh, assessed this, uh, acquisitions, uh, they were, they, they were done during, uh, the higher interest rates environment. Since then, the rates have actually, uh, been gradually coming off, especially, uh, this month, right? Uh, so the assumptions are conservative given, given the situation today. Um, so for the Singapore acquisition, it is in the four plus region, and for the, the, the Europe one, it is in the five plus thereabouts, uh, ballpark region.

Okay. Thanks so much William. And thanks Terra. Um, Brendan, go ahead please. Hey, um, morning Kip. Good morning, Brenda. Uh, William, um, just, just going back to the, to the schematics of the deal, right? Are you able to share, uh, if we, if we were to include the Euro acquisition as well as the debt reduction, what is the total overall accretion of e p you're looking at?

Um, it is still positive if I include everything in including the logistics redevelopment as well as debt repayment. Uh, it's still between the same numbers of between 1.2 and 1.3. Okay. Are, are you able to share what, what is the debt cost of debt that you're looking to pay down for, for the 24%? Yeah, so Brendan, uh, we will make reference to the first queue business update.

So the cost of our debt is 3.3%. Yeah. In the first queue business update. Okay. Okay. Um, maybe just one last one, right. Um, in, in the process of looking at this transaction, uh, was, was there any possibility of, of, uh, looking at the sponsors one in state, including those C L D assets? Uh, Brenda, you're asking in this transaction or in future transactions, Um, like in, in the process of exploring, uh, inorganic growth, uh, I mean this, yeah.

Okay. Uh, we have always have interests in, uh, sponsors as set those that actually fits the, uh, the portfolio construct for CLAR. Uh, as I mentioned previously, I think the discussion is still ongoing, uh, given the fact that sponsors assets actually, um, are sitting on a longer land list. So naturally the yield requirement or expectation is much sharper, uh, than what we are able to find in the, uh, market right now.

So I think we were, we, we are not in the hurry, uh, but we were definitely looked at their assets and acquired the right time. Uh, but at a, at a moment, I think there are still quality assets out there. As you have seen in our execution right now. Uh, we have acquired the, the tire property anchored by Phillips.

We have acquired the coal storage, uh, facility in Ja burro anchored by Coast Rich, uh, and now we actually hold their critical infrastructure for coast storage. Now they're my top 10. Uh, they have two in Singapore, one the east and one west, and four, they are critical infrastructure. Uh, and now we actually, uh, able to acquire this Seagates property, and this is their primary site outside of us for r and d. And, you know, Seagate is a market leader in the storage, uh, business.

So we have been looking at the key, uh, assets that has a good tenant, uh, to build up the portfolio. So while they are in the market, I think it is important for us to continue to, you know, uh, look at, uh, constructing a good portfolio, overall good portfolio in Singapore. Okay. That's it. Thanks so much. Thanks.

Thanks Brendan. Um, joy, Do you have your question? Sure. Uh, thank you. Uh, morning. Uh, a few questions from me. First of all, um, I think your last few acquisitions has actually come at a pretty decent yield. Uh, so just want to understand, are you seeing this still on the selective, uh, sellers, or are you starting to see this on a more broader basis where asking price has come off and we could expect sort of more than just one European acquisitions down the road?

Um, okay. Hi. If, uh, if you, uh, bring your question into two, uh, joy if for Singapore, the acquisitions have been decent, thank you for that. Uh, we were happy, very happy with this acquisition, given that it comes around 8%, uh, and it is a good quality 10 10 lease as well as a option for our 10 years and a two and a half percent escalation.

So that actually builds a lot of stability into income for this asset as well as a portfolio. Uh, as keeping mentioned, uh, where we are looking at these, all these deals, uh, it probably at a peak at the height of interest rate. Uh, so that actually helps parties, uh, to be very reasonable. I would say, uh, our pricing possibly also surprise the market in a positive way, right? Uh, as well as how the vendor has approached the, the, the price expectation, uh, which makes the deal a very good one for both parties. Uh, for all the three deals that we have done, uh, in, in, in, in Singapore. Uh, I would, I wouldn't say that it's a, it is a broad base in Singapore.

You have seen shopper use from other, other acquisition, other, uh, transactions in the market. Uh, but we are very focused on what we want, uh, and making sure that we have, uh, we can bring to a table in terms of execution, which is what the vendor likes. Uh, we are, we are able to close at a good price for parties. Uh, as for Europe, uh, this is one acquisition that, uh, is, I would say it's off market.

Uh, given the fact that we have our presence in Europe in both logistics and data centers, uh, and we'll be doing well, uh, and, and vendors out there in the market knows us, our brand name right now, uh, we are able to approach this in a, in a meaningful and constructive way, uh, to land this deal. Uh, and again, I would say that this is probably not broad base, uh, but I'm not shy to say that, you know, uh, carrier expanded in in our last, uh, uh, December, uh, numbers.

Uh, but it only reflects how the market, uh, is reacting to interest rate, uh, good quality assets, uh, good quality location. As you have heard from Kip, this a gateway city. Uh, it's not a new city for us, so it's somewhere some places that we are familiar with and we have our presence there. Uh, we know the submarket and we are looking at good quality assets that actually can build, uh, the entire portfolio resilience. And this is, uh, this is, uh, we hope to be able to give you more details, uh, as we close off the due diligence, uh, in due cost.

Okay. Cool. Um, and then two more questions on numbers. So one, the 1.2 to 1.3% increase is based on the previous higher interest rate. So I can safely assume that today you could save a bit more on interest. So that's one. Okay, so that's a yes. Two, uh, um, uh, that's on your advanced distribution. So if I annualize that number that seems to be coming in below your four year last year, can I understand, is there, so some one off in that advanced distribution or how, how firm should I take that as your, you know, your, your first quarter number, Uh, you're doing annualized? Okay. I mean, advance distribution, given the fact that it is, uh, we are not full close to the first half, uh, is a good number that we, we can't, uh, look at right now. Okay.

And definitely in terms of, uh, uh, organic, uh, I mean,

Yeah, that's right. That's right. Uh, so it goes back to, uh, uh, yeah, I mean, sometimes it's quite confusing, right? Vj? Correct. Uh, the master lak for science park property is the sponsor. Uh, so for other assets, uh, there are others master last, it could be s l a, it could be jdc, but of our landlord are actually J D C. So in theory, uh, if there's a need for redevelopment for this Seagate property, you'll go back to J D C for approval. Uh, just like the logistics redevelopment that we have, uh, indicated in our current, uh, uh, list of pipelines that we have, uh, it is a J D C land. Uh, we have put in our redevelopment plans.

They are now circulating among the authorities for approval, and JDC is one of those. Uh, so in terms of plot ratio is already untapped given the, given that, you know, J D C has already, uh, prescribe certain higher pro, uh, certain plot ratio for the land, uh, we are now just have to untap, uh, tap it up for, for redevelopment, uh, as well as, uh, in this case, uh, uh, we can't disclose more because it's also in the tender process right now.

So this is quite a clear, straightforward, uh, process for us to approach the, the master, if you like, the landlord in this case. J D C. Okay. Okay. I help answer your question, Vij. Yeah. And is this an off market purchase for the Seagate one? Uh, Seagate is, uh, that's a request for proposal. Uh, so we are probably among the parties, and I think they, what they have done is to look at track record and many other considerations.

Uh, and that's how we landed with this. Okay. Okay, got it. Uh, in terms of a European acquisition, is this going to be a single asset? And considering that your data center is evaluation has dropped quite a bit in the recent, uh, evaluation exercise, I would say you would steer off from data center and focus more on logistics.

Is that something which I would say, or you think the data centers in European valuation has bottomed out and that's something which you would, uh, still acquire? Uh, thanks, vj. Good question. Okay. First part of your question. Single asset, yes, it is a single asset. Uh, we still consider both logistics and data center as resilient asset classes.

Uh, the valuation that came down for data center or even for logistics, I think primary reason is during that time when did valuation, it was in the midst of the mini budget in U uk, and it does affected, uh, the sentiments, uh, but we do see that the cap risks are stabilized. Uh, while there could be potentially some expansion given how the, uh, market will change as well as the strength of the covenant in the asset. Uh, but we find that these two asset classes are what we want to, to increase our exposure. Uh, so we've been hunting around for this, uh, assets or acquisition within these two asset class. Uh, if there is any expansion that you are expecting from, uh, because of this transaction, uh, I think you, I will say that it all goes back, valuation goes back to the single asset, the quality of asset, uh, as well as submarket.

Okay. Okay. Uh, in terms of your full year target, I mean, previously we had some $1 billion target of acquisition. Is that something which you can expect, especially in this interstate environment, or it would be more opportunistic? Um, with these two acquisitions, we are about four over million. Uh, I think previously, I mean, we have guided that in 20 0 2, 20 22, you know, we are likely to hit the 1 billion. Uh, it's not a target that we have, uh, in place, uh, to drive the inorganic growth. Uh, but what we want to do is to be very, very selective and opportunistic in our, in our put, in our approach. So we will look at deals, uh, that can actually build up the resilience of net portfolio. Uh, as you have seen this year, we have close off, uh, the logistics assets as well as the one into pile, uh, good quality asset, uh, young assets, uh, as well as good quality tenants.

And now the Seagates, uh, acquisition, we have also demonstrated this is the same line of thoughts and how we've been hunting on the ground. Uh, so if it does hit anything higher, uh, so if we are no more, if you're looking for more acquisitions, uh, we will still be active in the market. And if there's any good opportunities, we'll bring up to you.

Okay. Thank you. That's all I have. Thanks, Vij. Thanks Vj. Uh, maybe we open a floor to Singway from BT Singway. Hi, morning, William. Hi. Yes. I have a few questions for you. Um, so regarding the acquisition of sukar, so I was just wondering like why now, Omid, the continued macro uncertainty. May I understand that there's only been a handful of Esri acquisitions so far this year, so does CLAR see that that is being lifted and bright skies ahead?

Yeah, Uh, thanks for that question. Uh, as I told vj, I think we are active in the market, uh, when there's a good quality asset that comes along, uh, to be honest, if they are priced in the, in the meaningful way, a reasonable way for us to be Euro creative, and we look at asset as stable, good quality, uh, the tenant are actually stable, uh, good quality tendons that we believe that continual pay filter, uh, these are some of the consideration. Uh, regardless of, uh, where the environment, uh, I think there's still opportunity and we just have to be very prudent in our approach. Uh, as you have seen in our construct, uh, we want to build up the tech and lock, uh, asset classes and want to focus on the tender in this, uh, in these two indu, these two, uh, property types, uh, which are affected or positively affected, uh, in the way of digitalization e-commerce. So in Singapore, we have looked at the top wire property being anchored by Phillips, which is, which is in a healthcare, uh, the logistics, uh, acquisition, uh, cost storage, which is anchored by cost storage, gained a good quality tenant.

And coal storage are premium property in the logistics sector. And now we are looking at one north, uh, Seagate, and this is their primary site outside of us. And, uh, in internally within the Seagate, there are still many other functional, uh, global functional, uh, departments that are sitting here, uh, here in Singapore. So this is probably one of the, uh, we consider them as a critical infrastructure for them.

And if you look at the entire, uh, one north now, we are able to increase it about 2 billion. Uh, that's about the size of what we have in US in Europe. So even in one North itself is a substantial size. And if you look at quality assets, uh, they're the good notes. Uh, they're exposed to life science, exposed to technology companies, uh, right on top of r t stationed. I think we have, uh, a lot to offer in one north.

Okay. Understand. And, you know, um, I understand that, uh, sugar, the remaining lend lease tenure is approximately 20 years, right? So why buy something with only 20 years left on tenure? What happens after? Is it subject to JTC renewable? Yeah, Uh, thanks for that question. So Singapore, typically now, uh, land allocation from the government is 30 years, and you do see that there has been shortening to 20 years. Uh, so there was, there's currently in the past we do see 30 plus 30 years, so 30 years first term, and the option of 30 years. So that has, uh, uh, brought down to 30 or even 20 years, 20 odd years. Uh, I believe that is how they have seen the industry transform.

So as a young nation, as, as we are track f d I, uh, we are also tapping on the advanced economy, advanced manufacturing. So industry do change, and the speed of change is quite fast, which makes sense for the government to give shorter leases. Uh, but just to remind, uh, uh, everyone that despite that the building is very, very, uh, usable beyond 30, 30 years.

So what we can do is to extend the land list, which is one of the questioned, uh, Terrance had just now. And there is no confirmation as yet because it all depends on the quality or

And in Singapore, we believe that we are able to, uh, uh, get around all this short list to get extension. And we are, and in our construct here, if you look at how, uh, CGE has approached this, uh, they gave a 10 plus 10 years, which means that the entire lease and income is technically back, uh, uh, uh, uh, supporting the 20 years, uh, lease. So, Okay. And thank you for that. But my, and one last question is, I understand that CLAR will fund this acquisition of sugar with the private placement, right?

So what will this mean for like your aggregate leverage and what is the percentage level that you guys are comfortable with? Yeah, Thanks and take that question. Yes. Um, so, um, I think if you would, may I refer you right to the private placement, uh, launch announcement on page six. So that will show how the leverage will improve.

So as of March 31st March, um, during the business update, uh, we, we disclose a 38.2% leverage. And with this, uh, private placement of 415 million, uh, and if we take in, uh, both the Singapore acquisition and the Euro acquisition, then during will improve to about 37.2%. Mm. Okay, Ken, and any guidance on how much all in cost of debt will increase?

Uh, You're referring towards the end of year? Yes. Uh, first quarter we have about 3.3, I think. Uh, we looked at where the interest rate, uh, will be in the next six to nine months. Uh, I suppose we, we, we will see some higher numbers, but it will be far, far from 3.3. Okay. Ken, thanks so much for your answers.

Thanks. Thanks. Um, bill From dpss. Thanks. Thanks, Terrence. Uh, hi. Hi. Morning, uh, Willam and Kipp, uh, exciting piece on news me channel this morning. Yeah, so, okay. Anyway, I think most questions have been asked, um, but, but just two quick one from me. Um, I think in terms of the redevelopment of the logistics property, uh, not sure if you're able to share what is the current plot ratio and, and you know, this, uh, how, how, what, what is the current NLA that, that will be extended to, uh, you know, 50,000 square meters?

Uh, the, the additional plot ratio that we are able to unlock is a lot, uh, a lot. Okay. Uh, can I say double Elise? Uh, you can, you can, yeah. About there? Yes. Okay. Okay. Okay. Sure. Sure. Thank you. Thank you. Um, next one is, uh, with regards to the, um, uh, Singapore property, the, the Seagate. Um, I mean, you know, like, like you mentioned, it's still a very long lease to go, 10 years plus another 10 years, but just wanna understand more about this property. Is it a, a built suit? Um, you know, just, just trying to consider down the road, you know, if let's say you have to, to let, uh, if they were to let go some space or anything, how, how can you manage the, the property?

Mm. Okay. Uh, good question. Uh, so this was actually built by Seagate for Seagate. Uh, but the way they have layout is not too specialized. Uh, it is quite, uh, there's two tower and, uh, it's quite easy for us to be able to convert to Monkey 10 if we need to. Uh, so it's not a, it's not specialized as in like, the way they've, uh, layout, um, require us to have a substantial change. Uh, so it's actually quite a business part, uh, layout. And, uh, we find that they've been very, very considerate in their, in their usage and the way their plan is, because they do have multiple users on site, including, for example, I've mentioned some of the, uh, uh, global BU functions are there, uh, they have included, even, for example, the specialized, uh, usage, like clean room data center. It's all within a, a base, a base design of a business pump.

Mm, mm-hmm. Okay. So, so given that they have so many functions there, so I can assume that they are, they're likely to be very tequila. Uh, we definitely hope so. Uh, because it's 10 years, there's no brick clause, uh, so they were likely to be, uh, staying put, uh, is what we have, uh, been discussing with them. Mm-hmm. Uh, actually a lot of, uh, r and d goes through Singapore. In fact, they have a lot of, uh, proprietary and in fact primary r and d that is done out of, uh, Singapore, which requires that part of the project, uh, to be approved here before it is, uh, uh, manufactured in other locations.

So it, it is, it is a critical infrastructure for them. Okay. Okay. Got it. Got it. Okay. Sounds good. Yeah, that's all for me. Thank you. Can I just go back to your first question? It's not so much about n a for the redevelopment. Uh, perhaps I would just say a few things here is that, uh, it was in, it is a very good premium location. Uh, it is in the, in the right, uh, if I would say the right note as, uh, Kip is man mentioned, uh, uh, into a highway, a major highway.

And I would say that it's actually a conversion of a, uh, cargo leaf warehouse into a modern ramp up facility, uh, which is then able to unlock the pot ratio. Uh, but most importantly, there's a renter uplift, as you have seen in our other redevelopment, uh, cargo leaf will give us good renter. Uh, but yeah, as we are able to build up, you know, six story ramp, first lady, the renter is actually moved up quite a lot.

So the queue is definitely in our favor. Okay. Okay. Got it. Sounds good. Okay. Yeah, that's all. Thank you. Thank you. Uh, as we are in the interest of time, maybe you can press on, but maybe give us your most pressing query. Uh, Shane can have the floor.

So property, uh, I won't be able to tell you more on that. Uh, uh, that's typically how they have assessed as a value. Uh, second point, second question in regards to sponsor asset. Uh,

Thank you. Thanks. Uh, I think we have demonstrated we are able to buy good quality, manage them well. Uh, if there's any divestment, it will still come as unsolicited. I think all assets are doing very well. They're fantastic assets, giving us good yield. Uh, not that we are in a hurry to divest any short leases. Uh, even short lease is backed by good quality income. Uh, we will look at any divestment on a need basis, unsolicited, what can they offer? Uh, because, uh, people do approach us for our good quality assets. Uh, but dive is definitely one area that we can, uh, definitely look at.

Thanks, Jen. Thanks Jen. Uh, perhaps Gula, you have your questions. Hi, Gula. Hi. Hi. Can you see me? Oh, I dunno. Hi. Hi. Thanks. Thanks for, uh, taking my, my raised hand. Um, yeah. Congratulations William. I just wanted to ask for the last three acquisitions you've done, Philip, the Burrow one and the Seagate one. All the land leases are like 20 years, 21 years or 20 years. And I do get that the income does cover the, the valuations that the, the amount that you, you are paid, you have paid and your pig.

But what happens to the valuations from year 20 down to year zero? I thought they started to fall. I thought you have to start to mark down. That's one question. Um, cause I'll just go very, very quickly. Um, and then can I just ask about your icr r cuz people are looking at, at, at the debt a lot, but, but I, but ICR is, uh, I think equally important.

So what sort of ICR are you likely to have after these transactions? And what sort of stress tests have you done on your ICRs is in particular with the US assets? Um, yeah. Uh, specific numbers I would like Kip, uh, answer you go, uh, on the first question. Uh, it is, it is back to the quality of asset, uh, the tenant in terms of the stability of income that determines evaluation.

Uh, while land, land lease, in terms of shorter land lease, you expect a markdown. But you're seen in our, in all our valuations, if is good quality trend and good quality asset, you don't see substantial. And it's not as though as 20 years, the next year, 19, we will start to see markdown. I think we still, 20 years is still a long way in the Singapore's context and values has been very, very, uh, diligent about, you know, uh, not, not a straight line depreciation across.

I think there is a art and a science to the values, uh, uh, methodology. Uh, and your last question, uh, about stress tests. Uh, we have done a few, uh, in relation to our balance sheet, which is why we also wanted to make sure that we are, uh, which is why this, uh, private placement, we included, uh, some, uh, you proceeds to be, prepare down that as well as to prepare for our future acquisition as our debt, uh, debt leverage, uh, comes, Yeah, think so. Your question about I c r interest cover ratio, uh, currently, uh, it is 4.7 times for Clark as said, uh, March, uh, close at the first queue business update. All right.

Um, so this is one of the bank, uh, covenants, uh, ratio that we have to watch. And if anything, we have a big buffer, you know, from the required, um, one, 1.5 times, uh, uh, threshold. So big buffer there. Okay. So have you done, I mean, uh, in what happens if your, say EBITDA drops by 15% or something like that, what will that do to your icr?

Um, because the buffer is so, so bay, um, some of the stress tests that we have done, uh, in, in very dire for dire scenarios, I think we are still in a very good place. Don't forget that substantial of assets are here in Singapore. 60%, uh, if you're concerned over us, is, is a small percentage over the entire portfolio. Uh, Australia is still strong. Uh, UK Europe are still very strong.

Uh, and even in us, uh, despite the concern over the stressors in terms of leasing, uh, we are still holding up very well, as you have seen our numbers, uh, in terms of our occupancy, and we are able to find leases that comes in a still positive rental reversion. Yeah. So even during the covid, uh, uh, pandemic, right in FY 2020, uh, I think we were not that our EBIDA was very resilient, right?

We had no collection issue, rent collection issue. Uh, we were able to distribute all our dividends. Didn't have to hold by anything. Okay. Yeah. Thanks, Ola. Thanks, Ola. Okay, thanks. Thanks. Okay. That, that's good. Thanks. Thank you. Um, Donald, you have a question? Yes. Hi. Hi, Donald here. Yeah, hi. Hi, can you hear me? Yes. Um, two very quick questions.

Just wanted to double check on the accretion assumption, uh, on the 1.2, 1.3%. Uh, so this is based on the redevelopment, uh, opposed redevelopment. So that was a timeline for this, uh, one point, 1.3% Acquisition. Acquisition, Yeah. Two acquisitions. So you take, you mentioned that you would taking all it include the redevelopment, uh, the, the, and the new acquisition and the paid of that, the there to be a Yes. At 1.2, 1.3%. Yes. Right. But this is assuming that the, the redevelopment comes through at the end, at the stabilize you, is that right?

Or is there, is there a year one accretion? Yeah, so it's performer. So everything back to same period, uh, first year, Same period. First year, yeah. Okay. So if you, if there is any uplift in the rents for the redevelopment, et cetera, then this thing goes up, this number goes up. Am I right? Uh, you can say that, definitely.

Yeah. Okay. Um, and then second is just to, to be, to be clear, um, for the redevelopment, uh,

Okay. So the, the stabilize yield is based on the, the,

Hey. Hey. Morning, uh, William and David? Yeah. First the, um, the Seagate, uh, property and lease. Um, how, how big is the rental deposit? Uh, it is 12 months. Okay. Okay. Got it. Because, um, my impression is that it looks like seagates in a, a sunset industry, so I'm not sure if it's going to be around after 20 years, but, but anyway, uh, 12 months, uh, you know, looks sufficient. Um, you know, moving on, Uh, just to mentioned, uh, David, I think the storage business is not just in your personal computer. Uh, their big client is data center, so the entire data center is storage.

So it, it, you, I'm not so sure whether why you command that is a, is a sunset industry. Uh, data storage is continued to be what we will need for years to come. Okay. Okay. Fine. Yeah. I, I was just thinking of the, uh, hard desk drive, but, but you're right. I mean, it's more than that. Yeah.

Yeah. It's more than that. Yeah. It's more than that Evidence actually. Anyway. Um, the, the, um, the second question is with regard to your allocation of 130 million for the placement for the European asset, are you going to, uh, fund, is that, will that be used to fully fund the acquisition or is it just partial? Uh, yes, it's just partial.

Okay. So the asset, so the size Based on the percent equity. Okay. Okay. And then the, the last question is, uh, you know, the last, uh, item in your placement is, is, um, uh, re repayment of debt. Uh, can you let us, let us know roughly how much that debt is, is costing you right now? Mm. So during the first queue, uh, business update, uh, the interest cost for the portfolio is 3.3%, But, but I assume that you would retire the more expensive debt first, right?

Yes, certainly. Yeah, certainly. So typically they will be your shorter tenure debt. Okay. Okay. Got it. Got it. Thanks. Thanks. Thanks, David. Um, Derek, um, you will have the last question. Thanks. Oh, thanks. Uh, thanks Dnce. Hi, uh, hi, William. Yeah, just a quick question on Seagate, if I can. Uh, I just look at the numbers that I report, right? I still lost making, so I'm just wondering whether, and they're under pressure to do a debt restructuring plan, right?

So I'm just curious whether going forward, uh, what are the, like, say comfort you get by having them as a long-term tenant? Uh, okay. I know in Singapore, a unique, just your thoughts on this. Yeah, Yeah. Hey, thanks. Thanks Derek, for the question. Uh, uh, good question. I'll let, uh, Rob answer that. Yes. Hi. Hi. Hi Derek. Can you hear me?

Yes, I can. Hi. Hi. Uh, so if you look at, I think you're referring to the last nine months numbers of, uh, ck uh, so the last making because, uh, those results, uh, reflect their, uh, restructuring costs and also the settlement they reach with the US department. If you, if you remove those two, uh, actually they're, uh, they would be, uh, not loss making.

And also I think last 2022 was broadly a year of correction for the storage industry. Uh, not only seeing it all of the players, but broadly about 35 to 40% on in, in terms of, uh, sales models. Uh, the company is expected to return to pro profitably sooner. Okay. No problem. So just one more, I think, uh, William, the footprint in Singapore, I just wondering, could you give a sense whether I haven't been declining the, also I got a HQ right in New Orleans, just wondering whether there's a potential opportunity or also, Uh, perhaps, uh, we haven't seen that in the market or discussion on that, but if there is a opportunity, we'll take a look at that.

Okay? Okay. Okay. That's all for me. All right, thanks. Thanks, Eric. Thanks Eric. And thank you everybody for the call. Uh, we will have to drop out now. Thank you for joining us. Thank you. Thank you.