27 February 2014

Croesus Retail Trust Update

Croesus Retail Trust today announces that they has entered into 2 Sale and Purchase Agreements to acquire 2 retail properties in Tokyo, Japan – Luz Omori and NIS Wave I. With the completion of the sale, DPU is expected to increase by 5.7% from 7.01 Singapore cents to 7.41 Singapore cents for the period from 1 July 2013 to 30 June 2014. The enlarged portfolio will comprise 6 retail properties and expand CRT’s NLA by approximately 9% to 198,148 sqm and grow its portfolio value by approximately 28.3% to JPY 67,830 million.

The acquisition of the 2 quality assets represents a strategic move that is yield-accretive to CRT. Luz Omori and NIS Wave I are two strategically-located retail properties in growing residential areas within Tokyo, which has excellent accessibility to major transportation nodes. It's diversified tenant base and strong competitive position will offer resilience and stability to the portfolio.

The financing of the acquisition is through a combination of net debt proceeds from new 5-year Japanese onshore debt of JPY 8,300 million and proceeds of JPY 6,128 million from the issuance of the Notes pursuant to its U.S.$500,000,000 Euro Medium Term Note Programme established on 3 January 2014.

With the latest proposed acquisition of the 2 new retail properties, CRT will have 6 retail properties portfolio on hand to manage. DPU has also been increased by 5.7% with the new acqusition. This piece of news is great for investors like us who are investing for income as the distribution had increased and we are riding on it without having to go into fund raising to acquire the 2 new retail properties.

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