# CapitaLand Integrated Commercial Trust — Proposed Acquisition of 79 Robinson Road Briefing

- **Event**: Proposed Acquisition of 79 Robinson Road Presentation & Analyst Q&A
- **Date**: 25 March 2022
- **Kind**: Automated speech recognition (unverified) transcript
- **Source**: https://www.youtube.com/watch?v=LLAIPRrIDJc
- **Ticker**: SGX:C38U

**Unofficial machine transcript.** Prepared by SMID Research from the issuer's public results webcast recording by automated speech recognition, without a full manual check: expect mis-heard names and figures. Timestamps refer to the recording. Not a company publication. The official investor relations record is https://investor.cict.com.sg/ . Copyright in the briefing rests with CapitaLand Integrated Commercial Trust; contact contact@smidresearch.com for corrections or removal.

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## Opening & Presentation

[00:00:00] So, yes, great meeting everyone. Thanks for joining capital and integrated commercial trust. We're being at short notice today. So we are pleased to share that CICD doesn't announce the proposed acquisition of 70 percent interest in seminar Robinson Road. And we have the management team of CICD online today to share highlights and address any questions that you may have. So the CICD management reduces evening art. Mr. Tony time or CEO, Miss one million or CFO. Miss Jacqueline Lee, here investment and portfolio management. And I'm making here of investor relations. Without further ado, I'd like to invite you to share with us more about the acquisition. Tony peace. Okay, hi. Good evening, T. J.F.

[00:00:45] I went to the Marshall Academy time. So we just released announcement. I'm sure you're participating about this acquisition. So we announced it now. We also acquire joining with a fund called Cora F. It's a Cora fund managed to look at the land to acquire 100 percent basis. The seminar of the central office building. So we'll take a 70 percent step. Cora have a take a take a take. I think the the due metrics looks I think it's interesting. We are going in acquiring on acquisition news about 4 percent. They'll give us about a 2 percent

[00:01:31] appreciation. On a vote for market. Currently it's about 9 to 0.9 percent. These give us a little bit of runway. So as we probably know, the office market is tracking along quite nicely. And we hope you're able to enjoy this update for the month. And the the I won't touch too much into the details. The Sanji I think the details are ready. They are we know the property details. And obviously at some point I think we would like to invite you for a tour. You can do the office office for the if you have not already seen it. It is just completed in the digital in this. So it's very, very new.

[00:02:20] Specs wise and it's not any worse often while you have seen the capital screen. Obviously the size is slightly different. The components are different. But generally these are very high quality. We have sets. Both I have no good map at the in them. So it's very efficient property as well. We have a relatively long wheel. By quite years, even as quite a new asset. So it's quite expected. I mentioned about the 40 4% entry. You I think we're just using the January NPI and just do an organization to steep a bit. Few. Yeah. Next. Total acquisition always roughly about 150 millilitre.

[00:03:07] About. We intend to find it with our divestment to see coming from JQ and many from the our own. So that would bring us. I think our gear is going to be manageable. 40 more percent. After the transaction is completed. There is taking the consideration on the activity we've done over the last. Six months or so. From one. Josh tree divestment. No, acquiring the tree assets in Australia. The LBS. We have a quick defined race with the message. And then now we find this. I got this. So. This one. One 2.9% deep. You're going to come from my basis.

[00:03:52] And we anticipate the occupancy. We're actually ramp up in the course of time. In terms of completion, we are looking at some time early part of second quarter. Hopefully by end of April, we'll be able to complete that. So we can get the income in quite as quickly as possible. Next. I think the acquisition structure is quite easy to understand. Essentially, as this infrastructure is owned by tree entity. comprising. 20 data is owned by. Capital and CI and one activity, which is owned by. The Japanese. The Seattle basically see our eyes. German. So while we are buying.

[00:04:38] Two pockets of the tree. So that makes up to the 70% which is box up. The remaining 30% would be acquired by. Or if I mentioned. So it's quite simple. Street force runs actually just buying at the top level. And potentially, obviously, up in mid-week, up on completion, we convert that entity into our. So that we are able to continue to enjoy. Text transparency like. Of course, we're going to enjoy. Next. Investment. Meris. I think they must say if you it's been seen what we're doing over the last couple of months. I think this is quite a lot of strategy. And it's still a journey. We're looking at. Hopefully construct. They tend to slowly. This is one of the action they were doing.

[00:05:26] And this is obviously forced quite nicely from quality. Wise from the location. Wise I think it can be. It's really on top. Top end of the market here. Just move on. I don't think I'll talk a little too much on this. Let's move on. I think upon completion, we're looking at the. Hopefully, that would comprise us about 92% in a row. with 4% in Germany and in 4% Austria. So it's still a very heavily. Same a percent. Content concentration. Which is a lot of investors asking for. In terms of the split. Of post completion, we're looking at. No, there's a big problem in office. 1,000,000.

[00:06:12] We're still slightly prepared out to do. 9%, and then integrated. The number about the same. Some who've been elevated. But don't think it can cause instant. As I mentioned, many times before. This number, this tie will start shifting. As in when you do your acquisition. And I mean, it's not planned to have any kind of ideal speed. It all depends on the market. Optionally, the market's secular. Location wise, I'm sure all of you'll be very familiar. In this part of the CVD. This is one of the top rate. You think could in a Google Tower, out of here, set of traces tower. So it's done very well. I think this location is going through a little bit of a rejuvenation.

[00:06:58] And it getting all this. With Alibaba, with a few tech company coming in to plan their location. There, I think this. This present will go through a more the years of. If you can say the illumination. So we are quite. Please that we are able to anchor opposition strongly here. Now, we've kept the tower together. I think you'll be able to see the energy of legal info. OK, those are our own touch about these are market things that you can be on your whole. So. So I think this. This that all this amenities is best. I think we bring you down to the look to see for self-wainment.

[00:07:43] Quality name anchor, allions, like Linux and Boston consultant group history made up because about 48% of our pen. Very high top names that you can see. I wish you, you know, I know the wheel I mentioned a little spike. Yes. Let's move on. Let's move on. Yeah, I think it's going to be quite short. Just presentation because the rest are quite self-asspenitary and perhaps we'd be good to see some questions. OK, thank you, Koni. Before we start with Q&A session, I just wanted to show how we can ask the question. So for those on the call, we can raise your hand and then I'll call out your name in

[00:08:29] case you join me or camera on you and identify yourself and ask your question. Then there are others if you want to also ask but without raising hands, you can also type your questions into the chat box and I'll ask the questions out to the panel. So I can see a few raised hands. You can you want to go first. C.I.S. Yes. Yes, can you hear me? Yes. Good evening, Tony. Maybe a conditioner more on the core of the enforcement horizon and then typically how long would they exit? Basically, I'm trying to find out whether you have any real first structure for the balance 30% and when that could come in. And then also going forward is either strategy to be partnering with core F, including

[00:09:15] overseas, whatever overseas projects they might have. That's my question. Thanks. Thank you. Thank you. I'm very relevant question, which is why this is the first joint. What you're going in with core. I think there's a lot of similarity in the way we look at the investment. They are core funding in New Jersey probably no, it's called core. Incomdriven, you look at cash flow and cash return. No different from what we're looking at S and we. So from a line. When interest, I think is very strong. They will be very long term. as far as the weather is equal five to 10 years. And definitely as any JV, the OBO for know the OBO pre-emptive

[00:10:01] that are vehicleed people properly. So you can rest assured, if this one move on well, in fact, we'll be quite pleased to find a partner, that the department is part of plus off and our strategy to look at different sources of capital partner, of course, the capital market will be and also capital partner. And this private space, I think, I wouldn't want to put any part of the collaboration. Yeah. Including the overseas one, right? Yeah, I think there are financials, Asia pack, so they can, they are not any geography specific. Do they also look at emerging markets? Yeah. Asia pack, as far as the way,

[00:10:48] is quite white, any specific geography, I wouldn't be able to comment on that. Yeah. Yeah, I think you can talk about it. We'll get raised to be in touch with you. Yeah. Okay, thanks. Okay, Nick, so we have Nicholas from Credit Suisse, Nicholas. Thanks, my thing. Sorry, my home's like camera's not looking on my laptop here. But just a couple of questions. I'm gonna understand on that roughly 93% occupancy. How much of that was paying occupancy in January? So just try to get a sense of what the normalization of that 4% yield may be. And once your expectations in terms of bringing that occupancy

[00:11:37] up closer towards say the high 90s, kind of percentage. And then could you remind me in terms of, you know, the divestments that you've had pretty much with this all the capital recycling is done now? So maybe, first question, maybe check on the touch on your probably a little bit more insight. Why can't you show us how we look at this ramping up going forward? Naturally, I think this, which I mentioned earlier, is getting a fair bit of traction. It's an uncommon coming area. Within the police, we moved, they were looking at a 4% entry yield, right? We should be able to track, you know, in a mid 4% hopefully in the high part of 4% over time.

[00:12:25] As we continue to lease out the remaining space. And at the same time, obviously, the existing currency is also a little bit of step up. There would be already imputed in our competition. There were some sort of, so mid 4% I think is a very recent last question going forward in the next two on the two years. Yeah, I think on the 4% I think there was a bit of a question on the 93% right? So in the 4% we have assumed that the 93% is all there from first January. Right. Yes, a good question about the capital recycling, whether it's down now.

[00:13:11] Yeah. The journey doesn't stop. I think there's a question right. I think we still have some work to do. Obviously, it depends on the market, depends on the money. But naturally, we're looking at the same way. I don't want to put up a percentage. Some of the assets we own, we also potentially looking at whether we can be looked at as well. So it's the ongoing yet, but the journey is not all the way. Okay. Thanks. And so I just one last one. I guess the in terms of the land lease of this building, when would you, I guess, engage the authorities on extending that would be too early to do that.

[00:14:00] Easy and I think I don't think they were even and they gave you even next 10 years. No, so it's not supposed to be. But nevertheless, we think we have rough idea what we want in the location. We're nearly trying to do more detailed analysis. Looking at the skin as available out there, you're just looking at your standard of plot. I don't think you're going to sell it. Definitely going to look at potential plots around the EU as part of the overall application. But there would be some. Okay. Thanks, Nick. Thanks. Next we have a joy for me just to be seeing. Hey, thank you. Just two quick question from me. One is this is the first time you're doing sort of JV

[00:14:47] with a fan. Could you just share in going forward in what circumstances would you use this structure? And when would you be more inclined with your own balance, 100% owned? And the second question is in terms of leasing for the remaining sort of vacancies, the discussion or ongoing discussions and what sort of leasing progress we should be looking at. Thank you. Yeah. I think it also depends on the capital availability and the team on the progress siren. It's open and fun. So the assembly and the opportunity obviously they also need to be available. They have to be a call at what we do sometimes. So it depends on circumstances, whether they can come here as a JV partner. And also whether they're underlying

[00:15:35] as an exchange for that. So we would use, I will see a call at that's one of the options. Go ask to look at how we want to participate in any kind of acquisition. Not knowing obviously we're doing on our own as well on 100% basis. And then if you have to do any kind of different research and what do you do? And maybe if I can follow up here, does core F's return criteria looking very similar to your return criteria? Well, the cash based, so the cash on cash, I think in fact, I shouldn't say too much on the other hand because this is really a private fund. But by nature as a whole fund,

[00:16:25] the underlying returns is always benchmarking against the specific return that it can get from a specific space but for them is a more initial pack exposure. So they will have to do their own balancing, you know, not how we want to put in different geography and technically how Singapore played into the whole portfolio, there's something they would decide. Yeah, how Singapore obviously and you can ask the questions. I think we will do it, you know, it fits into the overall exposure they want from a location part of you, then it's one potential evidence. Okay, who did I address the question?

[00:17:13] Oh, yeah, I'll say that. And the leasing. Yeah, yeah, there are some prospects in the discussion. We'll be quite sure obviously at this point, I'll be doing it on the supply there are the prospects. Yeah, hopefully we can, we can, if when we only actually to turn off something. Okay, thanks Joy. Next we have Rachel from DBS. Hello, yeah, just a few questions from me. I think firstly, any quick break classes for the leases and then with the big classes be. You want to be definitely more of a story there.

[00:18:04] There are very few talents with big classes. Okay, all right, straight, straight, full answer. Okay, then maybe the next question. Um, you were mentioning, I just wanted to clarify the. Uh, Rocher that you're mentioning is if. With now that the 3% remaining percent, we're going to have a growth for the remaining 30%. Correct is to. To sell out. Yeah, I won last question. Now that, uh, some, you know, obviously is out where you'll be looking at this thing. Still a question.

[00:18:49] It is not for the. We are. Yeah, as I say, yes, there will still be a opportunity. Yeah. Okay, got it. All right. Thanks. Thanks. Thanks, Rachel. Next we have, uh, Mervyn and JP at Mervyn. I don't need team. I congratulate on the acquisition. I guess he looked forward to working with Kevin again. I see a new partner. Yeah. Um, there's a few questions. Um, not so far on Nicholas question. Um, assuming it completes. In early April. Um, can we assume you're full for percent? Or does something fit out period that we should be aware of? That's number one. Um, in terms of the step ups, um, can I disclose what the portion of these two step ups and by how much?

[00:19:39] And with the long way, are there any market? Um, like a grant review, so we should be aware of. And then finally, was the sorry, now questions once I passing went for the, for the building. And then finally, um, in terms of CapitaSpring, um, should we be thinking that Cora will be a partner or you'll buy your, their really mistaken CapitaSpring. Going forward. Thanks. Oh, I'll take the last question. I leave the details on the first few questions to check. So on the top of the spring, as you probably know, we have the option, right? We have the option exercise. And that's called a quarter to us. I don't think so straightforward, whether we can allocate that rights to any department.

[00:20:27] Um, but nevertheless, the assets that we only have spring, I think, uh, from a pre and deep perspective, believe we should be the one, uh, exercising for and, uh, competitive, I think from, from the anger, uh, I will have a strong preference. We are not. Sure. And in terms of the cash for the new fit up impact from April. Uh, I think, I mentioned it from 4% day one in January, from January based on that basis. So then it should be right. But if J, right, would I leave you more color? Yeah. So the, the focus and assumes that, uh, the 93% is all there from January. So actually in that 93% of the occupancy,

[00:21:13] all the tenants are there. There's only one that is starting in May. So by the time we take over, that's human. We can hit sort of end of April. The tenant will be there also. Yeah. And then we can also set ups and, uh, rent reviews. Yeah. Okay. So far step up, I think, most of them have some kind of step up. It ranges from any low single digit to mid single digit. But I know. So that's the, the range that we have seen for step ups. And, uh, perhaps the other question that you had average rent. Any rent reviews, so we should be aware of and when. Um, I think mostly I just understand. But yeah, yeah. Sure. And what's the passing rent?

[00:21:59] Okay, we don't, we don't disclose the passing rent. So but I think for a great day of this, you know, that is in the range of maybe nine plus to 11 plus. Yeah. That kind of rental range depending on the unit. Yeah. Okay. So the, the NPI, the 4% cash NPI is not accounting NPI, where you straight line for step ups. Um, no, I think it's a real, like the check on that, but I think it's just based on whatever is the rent. Now, not, uh, reached out. Yeah. Okay. All right. Thanks. Thank you. Thanks. The next we have, uh, Vijay from RHB. Good evening.

[00:22:44] Uh, thanks Tony, making and Jacqueline. I have a few questions. Maybe I'll take it one by one. Um, my first question is on the valuation front. Uh, if I look at the valuation on a first corporate basis of two, four, two, three dollars per square foot. And maybe if I compare it to, uh, will you be downtown, which is a bit slightly far away, but has a similar least in your profile? It seems to be 40% lower than this building. Uh, I know it's a, it's a, it's a relatively older side and it's a bit far away from it, but, uh, seems slightly on the high side. Uh, have I made something? Uh, what I think that the key difference is the one is that we first asset, um, I was a, this is a completely deal. So that's fundamentally quite the same. And obviously there will translate into

[00:23:30] the, the kind of income that potentially you can be right. Right. Uh, the specs are just obviously, it's not comparable. Um, the ceiling height out the all is are all factors that will affect the rent, which is why it is a 4% view, no end, end ramping up as well. Okay. Okay. Got it. Um, is the funding structure final or would you be considering any equivalent? That's a part of the transaction, in the net. Um, it's too, too small or some to raise. I mean, if you want to do any, if I just too small, um, you're not a packet with a larger transaction in the future. Yeah. Okay. And I last question, in the DP equation, is it based on you securing the LLC? That means i.e. Is it tax transparency included in your DP

[00:24:16] equation? And I also want to check that, uh, I thought DP, I thought the LLC structure is available only if it is a pure lead acquisition or 100% won't by the, but in this case, it's 70% won't by the, and the 50% by a private vendor. So I used to be able to secure the tax consequences in the fact that it is. Yes. In fact, that's all you need a willing partner to do, to operate right. So, uh, we actually have often the necessary tax authority approval to proceed suits. So once the deals complete, almost quite immediately, we will, we'll, we'll come back down to our field. Yeah. Okay. Thank you. That's all I have. Thanks, Vijay. Uh, Next, we have, uh, Shen. On the government. Hi.


## Analyst Q&A Session

[00:25:03] Um, I just have one question on, you know, cap rate. Can you share what, what cap rates of value are you seeing? Um, and also notice that it's about 15% higher than the December 2021 valuation. So what are the changes in assumptions on the valuation? Yeah. Yeah. Okay. We don't have the valuation of the seller. So but for the valuations that we did, uh, by colleagues and fishermen, the cap rates were 3.6 to 3.6%, okay. Okay. Got it. Thank you. We thanks, Shen.

[00:25:50] Next, we have, uh, Gullah from the edge. Hi. Hello. Hi. Thanks. That was a, present presentation that we were trying to turn on, which is a bit work. Are you making? Yeah. So this is asked. Yeah. Can I just ask a big, big question? It's like this different way. What the appreciation, the, if you, the word, your, um, given to 39% say, and you had a, you had a different, very, very, very, a placement, a small placement to that. Would you be able to, provide a figure? Yeah. You'll be low. It's a calculation of selling.

[00:26:38] Yeah. The option with, uh, fractional ownership, 70%, 30%, if you also, we obviously can, quite 100% do a little bit of, yeah, or you do a 100% acquisition with no, yeah, then you're getting a shootout. Uh, we have compared to all that scenario. On a net basis, it were to do a 100% position and we do a little bit, yeah, are the appreciation obviously lower than what we are getting. Yeah. Yeah. Yeah. So your LTV is a little bit high, 62%, yeah. Are you going to keep it like that? Are you going to bring it down? Yeah. So, yeah, so good. Now, it's not that I did mention, yeah, no, they were wanted to do a mini

[00:27:24] FUQA and this one is just too small. If you were to assume a 40% LTV, uh, you're going to raise about 100 plus milli milli milli, it just doesn't make sense. From a market transaction point of view. Yeah. So I think we, we can start on the 41% for housing. Okay. And the simple question is on the valuation, which some of the analysts have asked about because it's in 45 years of, of least left. So I'm just wondering why was it, why the capital, appears to be quite compressed for that, for the, for the lower amount? Because it's, is it, is it comfortable to say capital green? Uh, Jack, you want to take that? Uh, yes, it's quite similar to capital green.

[00:28:09] It's just slightly lower because it's brand new. Yeah. Okay. Okay. Thank you. I think that's um, please. Thanks. Good luck. Yeah. Um, okay. We have, uh, moving from, moving, do you have a question again? Cause I can see your reason. Sorry, I'll lower. Okay. Can, okay. There we have, uh, Derek from Aquari. Hi, Derek. So, there we can hear us. We can hear you. Hey, sorry. Uh, I want to mute. Um, so he,

[00:28:54] I got a thing everyone. So it just could check, it can just, uh, remind me what is the rationale for this 70% state again. Uh, why not just go straight for 100% state in this asset? Uh, I love to show why there's this complication that eventually you still want to go for, or to buy from coriad and all that, uh, for the other 30% state. So that's the first question. Um, the next one is on the next deal that you're looking at from here on, um, I still looking more Singapore on you think, um, you know, you're okay to go versus now. Yeah. So I think that the, um, that's shown just now, there was some question. Um, we, we, we considered different structure. One structure, of course, we're looking for equity partner.

[00:29:40] One ways of course, you can go to the capital market. We have to partner. The other sources available to us now is this private equity fund, which is a whole nature, a lot of similarity, like a bit, you look at cash on cash returns. Look at you. Uh, so I think there's a lot of, uh, alignment from, business objective and their interest perspective. And this actually opens up, uh, the new possibility for us in the future. So if you want to look at the way, you want to contract this scarcity forward, right? In that freedom, we're looking for potential source of capital and capital and and I think core efforts actually want to have a new to consider. Then that's one of your question, why not 100% and we didn't mention that, you know,

[00:30:25] I think I had the, uh, explain earlier, if I would do 100% and want to bring down my theory to a manageable level, I should be back to 41%. I should be sure below. Then this JB with a call. So that's one. Second, from a structuring perspective is a lot, so simpler, you know, it's not complex because, uh, if you saw the chart earlier there as a really tree book, pockets of ownership, was were just buying two of the three and the, the, the, the other one, so from a structuring perspective is quite straightforward. And allow us to look at, um, uh, uh, acquire a, a, simple transaction to enter into. And this is the first time we're trying out with a JB partner with, uh,

[00:31:16] similar interests. And we also tested and they're willing partners to look at the LSP structure, even though they don't benefit our beta. Actually, we are the one that will benefit our beta. Form a tax sponsor transparency power, uh, LSP structure would accordingly read that, uh, full cash flow, full, full, full, but they don't. So we think this relationship, uh, worth, uh, exploring, uh, given the, uh, the multiple fact sets and, and specifically because they are a short path in nature, we think that we can try out first deal with some, some offers and we see how they push on that. On the second question, whether the next, I think earlier I mentioned they are still some opportunities in our portfolio,

[00:32:03] assessing, we see how things could go. So, so inclination is not for the right way to think about it. Uh, yeah, I think this, this is what we're seeing a lot from the investors, right? Uh, and they are opportunity, really simple, whether it's internal external. Yeah. Hey, thanks, Eric. Um, next we have a CNN from Bank of America. Hey, uh, thank you, thank you, and Tony, um, I just wanted to ask one quick question on what's the NPI imagine for this asset and is it in line with other offers assets? Oh,

[00:32:50] I jate. Good. I think it's in line, but J. You're not a library. Yeah, it should be, you know, 75% plus minus and then it's in line with the rest of our, generally in line with the rest of our office properties. Thanks. Can I ask another question? I brought a question on, um, kind of demand from Hong Kong, can you give me a call? What has it been like recently? Uh, yes, there are some demand spring out here and then, um, we kind of hear aggregate number, but, still the build of, yeah, increasing pace. All right. Okay. Thank you so much. Thanks, Amy. Okay. Next year, you can again from CIC.

[00:33:36] You can. Tony, I just have one quick question. What was the cost of that assumption and, um, for the funding structure and is it realistic and in car market? Yeah. Maybe I pass on to my CEO. She's the best person. Okay. We've assumed, we interest rate in the middle, meet 2% range. That is taking into account, the, a mix of, around 15 to 16% of fixed rate and, take advantage of the so-called steep new curve. Low, short, 20 weeks at the same time. So 60 to 40% fixed low.

[00:34:24] Okay. Okay. Okay. Thanks. Manage of money. It's manageable. If I want to be completely new, show it just with 50% fixed on the only view neutral. Is what kind of direction you can go? I think it's any place. Yes. Okay. Thanks. Okay. I think Rachel from DBS. Your more question, Rachel. Yes. Yeah. Just one quick question. For the correct fund, is there a target capital that it was to get on the exit? Any other investments? One comment. Yeah. Yeah. Yeah. I'm sure I can comment. This is, it is, yeah, fund, yeah, fund, return to the South Africa. But in which all that there are,

[00:35:10] please raise no, some questions. Yeah. Okay. Great. Thank you very much. You and then you have Shen, from Gorman. Hi. Okay. I found a DPU accretion 2.9% right. Has that taken into account the loss of income from GQDY investment as well? Yes. So the program factor in all the diversimal and all the new investment competition. Okay. Great. Thank you. Thanks. Um, make some of it. GPM. You're question. Yeah. Hi, Tony. I'm just with Cora, as though potential capital partner, how should we think about I on?

[00:35:56] Does that mean that potential acquisition can be accelerated in terms of timeline? Second question is with the recent relaxation. How far do you think the 10% sales can recover to putting FCT in schools that the January 10 sales will 113% of pre COVID numbers? No, no, but I'll say that for a CPT. Progress. Oh, no. What you're asking on that potential for that part good? Uh, I can't comment. The certainly, Jeremy Cora is one of the option that we can and to not, but whether we will partner with Cora in any next year or not, your depends on my many circumstances, right?

[00:36:44] I did earlier. They have a H of specific fund is a H of specific nature. So it's not just confide simple. They work their own. International education, which which which which you're drug of illegal you want to wait on. And they are to satisfy their own internal. So those factors are being really, let me enjoy depends on the case, my case. But this first job and Joe open up that possibility. Honey once I can tell you, like any any JV. It's always not a strip. Straphearts you do require that that

[00:37:32] process that there will be some process. There will be some complication. It's something that the vendors would have to address. I think they probably are in a very position to address that. Sure. And then in terms of expectations for time and sales posts. Yeah. Relaxation next week. It's very very positive. The very first piece of news of this deal was last Friday. The one on the each film I think is to me, but we chill shopping more. You know, Yi Zhuan space on on on activating multiple. I think it's a it doesn't do good for the overall recovery. The overall income contribution is not huge, but I think it brings back a lot of vibrancy which will have a loss of fuel in fact,

[00:38:18] putting it in the rest of the year. We kill it. So there was a record first. Good news. Second good news yesterday or not. Obviously the dining plan is a huge huge. I think it's going to be a huge boost. Morning the real percent of our our our our FMB nature. I think that that's very welcome. The outdoor. Mastery. The lifting of the park consumption. There will be an alibuster. So hopefully we can then feel a little bit. Naturally, you can think about CQ. A CQ are going to some some plan, which I mentioned before. Hopefully that would give us a good way to execute the plan.

[00:39:05] Well, given that the restrictions. Here sounds good. Hold the best. Yeah, thanks. Thank you. Good answer. You have a question. Yes, I don't. It's it's once again. It's about the the debt because you said the portion of fixed debt is around 50 to 60 percent. Did you say is that what it is? So will that yes, so will that affect the total fixed rate of debt? Because it was around 84 percent as an end December. So will that lower it a lot or not going much? I mean, anyway, this is a JV level.

[00:39:52] Right? So on the under CIT level, we there's something that we can control at the top. We'll still be able to bring around 80. So quite high. Moving down, I think that's where the beauty of having a really very high fixed rate hatch. You allow you that flexibility and I mean, you have to be a job because the you curve is moving quite rapidly. Right? To look at how best to that could be hatch in the opposition, where there's a short time, a long time. I mean, these are technical strategy. And the consequences are secure relatively high fixed rate. We have that ability to move over in between. You allow some floating as and when the timing makes sense.

[00:40:42] I'm I mean, it continues. So if you have 70% of the of the, but you own 70% of the building. And how much have you accounted for 70% of the debt or do you have to consolidate all the debt? And then take it out in the minority interest that you would do with the revenue and the NPI and the distributed income. We will under counting on the accounting tree. Which we are still clarifying. We've already talked. Yes, if it is the subsidy, we don't have to consolidate the debt. To in terms of the MES leverage ratio, we will take the portion of share of 70%

[00:41:30] who's a general member debt? This is the two percent LTV takes into account all this. I mean, it's not all the debt, right? It's not the consolidated debt. Yeah, from from MES, giving standpoint, we take the portion share. Does he answer your question, Guilla? Yes, it does. I'll hide by so. Thank you. Okay, before we go on to the mix on line one, just a question that came through the chat from Simon from SCCM. His question is about the follow up on the capital recycling.

[00:42:19] Has all proceeds from recent divestments been used already? If not, how much is left? And then also on the JB structure, does either JB part have been to on future divestment? Yeah, the capital is working in the data into the JQ-140 transaction. And veto right what do you mean? They would certainly have the free and give and the roof. So the roofer, there will be a process when assuming either body on the cell, they would have to present to the JB partner person, see whether they want to move. You want to buy over. If not, then it's free to go. So I don't think that's so called veto in the sense.

[00:43:08] Okay. Thanks Tony. So next we have a direct from Morgan Stanley. Darian, go ahead. Hi, I'm Tony again. Can you tell me? Yes. Yeah, to come, I asked if it was to feel conditional on core effort, having to take a 30% state. Because I think the Christian crab in high ice, you have about 100% of building and put in all more debt and lower the cost of capital to fund this calculation conditional. This is a continuous competition. I mean, the legal, the legal, the legal, the use is that this two transaction are spying over part of the CLC and the other ones from Japanese.

[00:43:56] And the remaining part that core effort buys from basically buy from the CLC. It says to be a common, a similar business competition. So that's one of the terms in the S. Yeah, correct. And this was one thing if I guess CLC wants to incentivize itself because car will be taking a 30% state for how you do this remaining 100% state. Yeah, CLC have option before they want to sell to. But in this case, I think it works out quite well for us. So I'm going to give a send fits into our overall capacity to know who we can find

[00:44:41] without doing any FR. Your question, or if we do 100% and we're doing the, and the given will publish a lot more money for the 2%. And that's where I think probably for the dual BFR and we'll do a EFI bring back down to 41% around same level. Then the Christian is much less. All right, thank you. So this is still the most optimal options are from the, the way the decision. Hey, Derek. Thank you. Okay. It's a win-win for us. I think that's in the for correct. I think for that is the also for stamp on the ring at re-time.

[00:45:29] So they, we'll see how the experience goes from here, but I'm quite optimistic that the relationship we work on, we'll cover. Thanks, Tony. I don't see any race hands on the platform. Okay, maybe last call. Does anyone have any, any other question? Okay, I also don't see any questions on the chat box. I think there are no other questions. I think we want to thank everyone for the time and we want for you back. Yeah, there's any other questions that you have at least you agreed to email or text me. Yeah, thanks a lot. Thanks for staying there for Friday. Okay, well, go weekends.

[00:46:17] Bye. Bye. Bye. Bye. Bye. Bye. Thank you.