Soildbuild Reit, an ex darling

SOILBUILD REIT used to be my darling. I like it mainly for 1 thing. Business parks. At times like this, shiny prestigious location in CBD is not that important anymore, cost cutting comes first. Some banks have given up their office space in CBD and move more of their people to Business parks, like CBP (Changi Business Parks). Standard Chartered Bank is 1 of them. What i dislike about SOILBUILD REIT is the amount of exposure the REIT has to the O&G Sector.

The number 1 tenant for them was Technics offshore. When they acquired the yard of Technics offshore, i was abit sceptical. I took a quick look at the financials of Technics. Have been losing money for continuous quarters. Not sure if the management had done their due diligence. To err is human, i bought more of SOILBUILD REIT although i should have known better about the state of the O&G industry. Mostly out of greed for the high yield. It was all hunky dory until less than a year later, articles surfaced that Technics had been defaulting in rents, and SOILBUILD REIT had to call on the bank guarantee. Technics was placed under JM.

Thus, SWIBER wasnt the first one for local O&M players this year to be placed under JM. Technics was. Now, SOILBUILD REIT management has 15 months to go to sort out the location at 72 loyang way. Only time will tell what's going to happen. Oh anyway, of course im gonna subscribe to the preferential Offering. If anyone wants to know the difference between Technics and Swiber's business, let me know. Ill start a post on that. 


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