BUILDING LANDMARKS, CHARTING GROWTH
21
Annual Report 2015
CAPITAL MANAGEMENT
In January 2015, we established a S$2 billion Multicurrency
Debt Issuance Programme, and issued S$100 million
4.25% Notes due 2018 under the programme in March
2015. We also successfully launched our first three-year
4.65% per annum fixed returns retail bonds which closed
with an oversubscription of about 9.8 times for the Public
Offer tranche, and the total offering size was increased to
S$300 million to meet the strong demand from the public
and placement tranches.
As at 31 December 2015, Perennial’s net debt to equity
ratio stood at 0.45 times. We will continue to exercise
prudent capital management, optimise our cash flow and
maximise capital efficiency by proactively managing its
overall liquidity position and debt maturity profile.
LOOKING AHEAD
We will continue to strengthen our unique position as
an integrated real estate and healthcare company in
Asia and beyond. As an integrated real estate owner,
developer and manager of prime large-scale integrated
developments which are close to transportation hubs, we
are well-placed to capitalise on our complementary real
estate and healthcare strategies to build iconic integrated
mixed-use developments, comprising international-quality
retail malls, offices, apartments, hotels and even, regional
medical hubs. Our growth path is further reinforced by
the privileged access to real estate opportunities and
key contacts through leveraging on our major sponsor
Wilmar’s established reputation, in-depth knowledge,
on-ground resources and relationships, particularly in
China and other emerging markets.
This year, Singapore and China will remain as our core
markets. Despite the relatively weak sentiment in view
of the volatile global economic environment, we remain
confident in the long term outlook for these markets.
One of our key priorities for the year is to strengthen
the recurring revenue streams from operating assets in
Singapore and China. To this end, we will continue to
drive the performance of our Singapore assets, whilst
executing our strata sale strategy at TripleOne Somerset
and AXA Tower to deliver an additional stream of income.
In China, we will focus on optimising the performance of
the operating assets in Shenyang, Foshan and Chengdu
which will continue to deliver a stable income stream.
The completion of the construction of PIHMH and
Chengdu Xiehe Home on Chengdu Plot D2 are expected
to further boost the income stream.
On the healthcare business front in China, we intend to
further develop this new wing of growth by partnering
reputable local and international medical and healthcare
operators to offer a holistic range of services. In addition,
the introduction of healthcare real estate as an asset
class within our integrated developments will be actively
explored. The strata sale real estate strategy for our China
integrated developments will continued to be pursued, but
may be substituted with the execution of our healthcare
strategy if it creates more value for Shareholders.
Separately, we intend to establish a TCM JV which will
operate at the House of Tan Yeok Nee.
ACKNOWLEDGEMENTS
We thank our Board of Directors for their wise counsel
and commitment. We would also like to thank
Mr. Chua Phuay Hee for his leadership during his term as
Chairman of the Audit and Risk Committee (“
ARC
”) until
he stepped down on 4 February 2016, and look forward
to his continued guidance as a member of the ARC.
Concurrently, we welcome Mr. Ooi Eng Peng to the Board
and believe that Perennial will benefit from his extensive
business experience and acumen as the Chairman of the
ARC with effect from 5 February 2016.
On behalf of the Board of Directors, we extend our sincere
appreciation to our Shareholders, tenants, business
partners, customers, the analyst and media community,
and staff for their continued support.
Mr. Kuok Khoon Hong
Mr. Pua Seck Guan
Chairman
Chief Executive Officer
8 March 2016
