Thakral Corp Ltd : Phase Two GLNG Housing Project of 56 Houses in Gladstone,Queensland, Australia

ACQUISITIONS AND DISPOSALS
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ACQUISITIONS AND DISPOSALS :: NON-MANDATORY DISCLOSURE, CHANGES IN COMPANY'S INTEREST :: PHASE TWO GLNG HOUSING PROJECT OF 56 HOUSES IN GLADSTONE, QUEENSLAND, AUSTRALIA

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>>ANNOUNCEMENT DETAILS

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16-Aug-2012

(Incorporated in the Republic of Singapore on 7 October 1993) (Company Registration No. 199306606E)

Singapore August 16, 2012

Mainboard-listed Thakral Corporation Ltd ("TCL" or the "Company") (together with its subsidiaries, the "Group"), through its subsidiary, TCAP Custodians (Gladstone) No
2 Pty Ltd ("TCG 2"), has entered into agreements with GLNG Operations Pty Ltd ("GLNG") to build another 56 houses for lease to GLNG ("GLNG Phase 2 Housing") ("the Project").
These agreements come on the heels of the recent successful completion of the delivery of the first 45 houses for lease to GLNG under Phase One of the GLNG housing project.
Similarly, the GLNG Phase 2 Housing will be leased on a long-term basis to GLNG
for occupation by its permanent executives to be based in Gladstone, Queensland.
The GLNG Phase 2 Housing is a further step for expanding the activities of the Group's Investment Division in real estate in Australia. Construction on the first 11 lots of land acquired on 11 August 2012 has already commenced, with work on the remaining lots to commence progressively as the lots of land are delivered to TCG 2 over the coming weeks. The houses are scheduled for completion and ready for occupation by end of the early second quarter of 2013.

The total capital required for the Project of about A$33.6 million, inclusive of interest during the construction phase, will be fully funded from capital contribution by the Group of about A$10 million (the "Investment") and bank loan secured by the Project. The bank loan is a limited recourse loan secured by the Project itself with a limited guarantee from Hanbest Limited ("Hanbest"), a wholly owned subsidiary within the Group. Hanbest is the vehicle through which all the Group's investments in Australia have been made. The guarantee provided to the bank by Hanbest is for a fixed sum for the period pending the LVR on the bank facility is reduced through cash flows from the tenants or through sales.
Servicing and repayment of the bank loan will be funded from the rental cash flows from the Project and proceeds from progressive sales of the houses.
The Group is intending to sell down about A$5 million of its investment in the Project to other investors at a later date.
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The Project marks another milestone for the diversification of the income streams of the Group to include investment in real estate in the ordinary course of its business. Like the first 45 houses, the income returns from the GLNG Phase 2 Housing secured under long term leases, provides an exceptional return on the capital invested by the Group as well as prospects for capital growth.

The capital invested by the Group is funded from the Group's bank borrowings and internal resources.

TCAP Pte Ltd and its subsidiaries ("TCAP"), will receive a fee for originating, packaging and financing the Project from GLNG. The return on the investment will be generated from rental income and from sales of the completed houses. The rental income will commence from the date of hand-over of possession of the houses to GLNG which is expected to start from about November 2012. Accordingly, on the assumption that the Investment is made at the beginning of the 2011 financial year (being the most recently completed financial year), the net profit attributable to the Investment in the financial year in which the Investment is made having regard to the interest on all debt during the construction period is about S$698,000.

The assets and liabilities on the Investment will be consolidated in the Group's balance sheet. Based on the audited consolidated financial statements of the Group for the financial year ended 31 December 2011:
a) assuming that the transaction had been effected on 1 January 2011, the Group's earnings per share would have increased from 0.32 cent to 0.34 cent; and
b) assuming that the transaction had been effected on 31 December 2011, the financial impact on the Group's net tangible assets per share is not material.
The proforma financial effects set out above are purely for illustration purposes only and do not reflect the actual future financial position of the Group after making the Investment.

None of the directors or the controlling shareholders of the Company has any interest, direct or indirect, in the Investment except for the Managing Director, Real Estate and Corporate, Mr. Jaginder Singh Pasricha who is a minority shareholder, holding 12.25% of the issued capital in TCAP Pte Ltd, a subsidiary of the Company. TCAP originated, packaged and financed the Project for which TCAP will receive a fee and a share of profits from the sale of the houses in due course.
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The following indirect subsidiaries and unit trusts have been established as special purpose vehicles to facilitate the Investment in the Project:

Commenting on this project, Mr. Jaginder Singh Pasricha, TCL's Managing Director, Real Estate and Corporate, said, "This second agreement with GLNG confirms the confidence GLNG has in the Group. The Project is supported by strong cash flows, with the capital value underpinned by GLNG. The Project once again places the Group in the forefront of the residential market in the regional centre of Gladstone as it grows on the back of a strong investment boom in energy and related industries. We expect to achieve positive returns from this 2nd phase for the benefit of our shareholders."
Mr. Pasricha added, "The Group will continue to seek opportunities for the provision of accommodation in the various regional centers of Australia which are growing
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strongly due to the resources boom in Australia. We are currently negotiating a healthy pipeline of projects in the real estate sector - which we will announce in the coming months."

GLNG project is a US$18.5 billion pioneering venture to convert coal seam natural gas to liquefied natural gas for export to global markets. It represents a major investment in a cleaner energy source for the future. The project involves the development of the Santos GLNG gas fields in the Bowen and Surat Basins, the construction of a 420km underground gas transmission pipeline from the gas fields to Gladstone and a two-train LNG processing facility on Curtis Island at Gladstone. The project is a joint venture between one of Australia's leading gas producers Santos and three of the world's largest energy companies, PETRONAS, Total and KOGAS.
Gladstone is the centre for the investment of other energy companies in coal seam gas projects. Gladstone is also the major port for export of coal from the Bowen Basin and has other industries including aluminium refining and smelting as well as the largest single power generation plant in Queensland. Substantial further investment in the Gladstone region is under way in respect of other projects including coal, expanision of the port, expansion of the aluminium refining plant and power generation plant with approved investments totalling in the tens of billions US dollars.

About Thakral

Listed on the SGX Mainboard since December 1995, Thakral Corporation Ltd is in the consumer electronics distribution business and strategic property and equity investments.
Presently, China (including Hong Kong) and other Southeast Asian countries are the Group's key markets for its consumer electronics distribution business. Under its extensive consumer brand portfolio are global names such as Apple, Canon, Casio, Fuji, Hewlett-Packard, Lenovo, Nikon, Nokia, Orion, Panasonic, Samsung and Sony. The Group has also taken up new brands such as Belkin, Built, Cygnett, Empire, Logic3, Native Union, Scott, Skullcandy and SwitchEasy.
The Group also markets and distributes trendy consumer electronics products under its own proprietary brand "YES".
The Group invests in real estate and other investment opportunities as part of its overall business strategy. The Group has been the cornerstone investor in investment opportunities originated through its investment subsidiary together with co-investors.

About TCAP

TCAP Pte Ltd is a 51% owned subsidiary of TCL with the remaining 49% owned by
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its executive team. It is the investment subsidiary of the Group and originates, negotiates and packages primarily real estate and incidental resource projects. TCL is its cornerstone capital partner. Further capital is sourced from other capital partners as required. A company wholly-owned by the Australian subsidiary of TCAP Pte Ltd, TCAP Investments Limited, is the holder of an Australian Financial Services Licence.

Release issued on behalf of Thakral Corporation Ltd by

Stratagem Consultants Pte Ltd

For more information, please contact:
Tham Moon Yee, Lee Yew Meng and Lucas Yang Xiaoguang
Tel: (65) 6227 0502
Emails: tmy@stratagemconsultants.com yewmeng@stratagemconsultants.com lucasy@stratagemconsultants.com
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