111
110
STARHILL
GLOBAL
REIT
Annual
Report
FY 2014/15
Notes to the
Financial Statements
(1)
The Group has in place three-year and five-year unsecured loan facilities with a club of eight banks at inception, comprising:
(i) JPY6.3 billion ($69.3 million) (2013: JPY7.0 billion or $84.3 million equivalent) and $100 million (2013: $100 million) three-year term loans maturing in
September 2016;
(ii)
$250 million (2013: $250 million) five-year term loan maturing in September 2018; and
(iii)
$250 million (2013: $250 million) five-year revolving credit facilities maturing in September 2018, including a $50 million uncommitted tranche. There
is no amount outstanding (2013: $25 million drawn) under the committed tranche as at 30 June 2015.
In June 2015, the Group utilised $100 million from its new three-year unsecured loan facilities of $250 million (maturing in June 2018) with four banks, to
early refinance the above $100 million term loan due in September 2016.
The interest rate on the above unsecured loan facilities was largely hedged using a combination of interest rate swaps and caps.
(2)
The Group has drawn down $22 million (2013: $52.5 million) of short term loan from its other unsecured multicurrency revolving credit facility as at 30 June 2015.
(3)
The Group has outstanding medium term notes (“MTN”) of $349 million (2013: $124 million) as at 30 June 2015 issued under its $2 billion multicurrency
MTN programme and rated at “BBB+” by Standard & Poor’s Rating Services, comprising:
(i) $124 million unsecured five-year Singapore MTN (the “Series 001 Notes”) (maturing in July 2015) which bear a fixed rate interest of 3.405% per annum
payable semi-annually in arrears;
(ii) $100 million unsecured seven-year Singapore MTN (the “Series 002 Notes”) (issued in February 2014 and maturing in February 2021) which bear a
fixed rate interest of 3.50% per annum payable semi-annually in arrears; and
(iii) $125 million unsecured eight-year Singapore MTN (the “Series 003 Notes”) (issued in May 2015 and maturing in May 2023) which bear a fixed rate
interest of 3.40% per annum payable semi-annually in arrears.
The proceeds from the above issuances were extended as intercompany loans to the Trust at the same repayment terms.
(4)
The Group has JPY1.2 billion ($13.7 million) (2013: JPY1.5 billion or $17.5 million equivalent) Japan bond outstanding as at 30 June 2015, maturing in
November 2016. The interest rate for the Japan bond has been hedged via interest rate cap. Whilst no security has been pledged, the bondholders of the
Japan bond have a statutory preferred right, under the Japan Asset Liquidation Law, to receive payment of all obligations under the Japan bond prior to
other creditors out of the assets of the issuer (Starhill Global REIT One TMK).
(5)
The Group has outstanding term loans of A$208 million ($214.7 million) (2013: A$63 million or $71.1 million equivalent) as at 30 June 2015, comprising:
(i) A$63 million ($65.0 million) (maturing in June 2019) loan which has been hedged via interest rate caps and is secured by a general security deed over
all the assets of SG REIT (WA) Trust and a mortgage over David Jones Building. The maturity date of the loan (which was originally due to mature in
June 2017) was extended with the same bank in June 2014 by two years to June 2019.
(ii) A$145 million ($149.7 million) (maturing in May 2018) loan obtained in May 2015, which has been hedged via interest rate swaps and is secured by a
general security deed over all the assets of SG REIT (SA) Sub-Trust2 and a mortgage over Myer Centre Adelaide.
(6)
The Group acquired the Malaysia Properties through an asset-backed securitisation structure in June 2010. Under the structure, the properties were
acquired by Ara Bintang Berhad (a bankruptcy-remote special purpose vehicle) which issued five-year fixed-rate RM330 million Senior MTN (“First
Senior MTN”) to partially fund the acquisition of the Malaysia Properties. A refinancing was undertaken in September 2014 by buying back and cancelling
the First Senior MTN and issuing new five-year fixed-rate senior MTN of a nominal value of RM330 million ($117.6 million) (“Second Senior MTN”) at a
discounted cash consideration of approximately RM325 million. The Second Senior MTN have a carrying amount of approximately RM326.2 million
($116.2 million) (2013: RM330 million or $127.4 million equivalent) as at 30 June 2015. The Second Senior MTN have an expected maturity in September
2019 and legal maturity in March 2021, and are secured, inter alia, by a fixed and floating charge over all the assets of Ara Bintang Berhad.
(7)
The carrying amount of $1.1 million as at 31 December 2013 represents the discounted value of RMB5.7 million ($1.2 million) loan payable to a third party
and was assumed as part of the acquisition of the Renhe Spring Zongbei Property in China in August 2007. The loan was interest-free and repayable in
equal and annual instalments over seven years, of which the final instalment of RMB5.7 million has been fully repaid as at 30 June 2015.
The contractual maturities by type of financial liabilities, including estimated interest payments and excluding the impact of
netting agreements, are as follows:
Cash flows
Note
Carrying
amount
$’000
Contractual
cash flows
$’000
Within
1 year
$’000
After
1 year but
within 5 years
$’000
After
5 years
$’000
Group
30 June 2015
Non-derivative financial liabilities
JPY term loan facility
13
69,275
(70,204)
(739)
(69,465)
–
SGD term loan facilities
13
350,000
(373,271)
(7,303)
(365,968)
–
SGD revolving credit facilities
13
22,000
(22,014)
(22,014)
–
–
Singapore MTNs
13
349,000
(406,136)
(133,865)
(31,021)
(241,250)
Japan bond
13
13,743
(14,184)
(293)
(13,891)
–
Australia loans
13
214,708
(240,271)
(7,679)
(232,592)
–
Malaysia MTN
13
116,239
(140,011)
(5,283)
(134,728)
–
Trade and other payables
11
63,203
(66,848)
(37,604)
(29,244)
–
Total financial liabilities measured
at amortised cost
1,198,168 (1,332,939)
(214,780)
(876,909)
(241,250)
Derivative financial liabilities
Interest rate swaps
8
1,042
–
–
–
–
– inflow
14,102
4,660
9,442
–
– outflow
(20,656)
(6,404)
(14,252)
–
Currency option
8
17
–
–
–
–
Total held for trading
1,059
(6,554)
(1,744)
(4,810)
–
1,199,227 (1,339,493)
(216,524)
(881,719)
(241,250)
31 December 2013
Non-derivative financial liabilities
JPY term loan facility
13
84,308
(86,865)
(926)
(85,939)
–
SGD term loan facilities
13
350,000
(373,766)
(5,599)
(368,167)
–
SGD revolving credit facilities
13
77,500
(79,693)
(53,125)
(26,568)
–
Singapore MTN
13
124,000
(132,444)
(4,222)
(128,222)
–
Japan bond
13
17,482
(18,609)
(375)
(18,234)
–
China loan
13
1,139
(1,194)
(1,194)
–
–
Australia loan
13
71,067
(83,598)
(3,582)
(80,016)
–
Malaysia MTN
13
127,364
(137,556)
(6,814)
(130,742)
–
Trade and other payables
11
66,419
(70,600)
(43,748)
(26,852)
–
Total financial liabilities measured
at amortised cost
919,279
(984,325)
(119,585)
(864,740)
–
