Page 5 - Forterra

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ABOUT FORTERRA TRUST
Listed in Singapore in June 2010, Forterra Trust
(SGX-ST Code: ForterraTr, Stock Symbol: LG2U)
is a leading owner, manager and developer of
commercial real estate in China. With operations
headquartered in Shanghai, Forterra has made
formidable progress in creating a high quality
retail and office portfolio comprising both income
producing and development assets predominantly
located in central business district and regional
commercial centres in Shanghai, China’s leading
commercial and finance centre. Through a prudent
and disciplined regional expansion strategy,
Forterra extended its footprint to the coastal
city of Qingdao through the ownership1 of a
large retail asset in Laoshan, the new designated
Central Business District in Qingdao. Forterra has
recently completed its first development project
in Beijing, Beijing Logistics Park, a 75,028 square
metres warehousing facility that is 100% occupied,
demonstrating the strong development capability
of the business. As at 31 December 2012, Forterra’s
gross assets under management (AUM) are in
excess of RMB12.63 billion (S$2.48 billion).
“With a tough year behind us Forterra can
anticipate an exciting 2013 as the completion
of its flagship asset The HQ moves towards
reality. With strong occupancy of our Core
Portfolio providing a stable foundation, the
board and senior management have given an
unequivocal commitment of resources to The
HQ development and pre-leasing program. With
asset disposals anticipated to provide in excess
of RMB1.0 billion (approximately S$200 million)
in net cash the Trust is confident in its liquidity
through 2013 and beyond.
It is also pleasing to have brought the Goldman
Sachs strategic review process to a satisfactory
completion. Looking forward, the Board is of the
view that Forterra has the prospects of a passive
REIT upon completion of its current development
program and that it is appropriate for it to re-
trade to a level in line with its direct and broader
peers. As a consequence the Board is confident
that its strategy over the next 12 to 18 months will
deliver increased value to Unitholders as part of
the process to transition the Forterra portfolio to
one of international quality.
The board and senior management team
are committed to the delivery of a stabilized
Trust providing stable income distributions to
investors no later than FY2015 and to returning
the Trust to its position as a leading owner,
manager and developer of commercial real
estate in China, whose principal objective
is to deliver comprehensive total value to
Unitholders.”
Graham Sugden
Chairman
1 Joint venture interest.