Smartkarma Research Team, Smartkarma

Smartkarma Research

Smartkarma Research Team

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Forensic Accounting

<div>For our next Webinar, we are excited to welcome Insight Provider <a href="https://www.smartkarma.com/profiles/jason-yap-cfa" target="_blank" data-smartkarma-citation="accounts:24996" rel="noopener">Jason Yap, CFA</a> who will share his insights on Forensic Accounting and how to apply it to the investment process. He will go over how to bridge existing knowledge gaps of traditional fundamental analysis, with the ultimate aim of maximising portfolio returns. </div>
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<h3>The webinar was hosted on Wednesday, 22 September 2021, 17:00 SGT/HKT.</h3>
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<p>Watch the full session:</p>
<p><iframe src="https://www.youtube.com/embed/RRdIcQu1X4w" width="560" height="315" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="allowfullscreen"></iframe></p>
<p>Or subscribe to our podcast feed and listen on the go:</p>
<p><iframe src="https://open.spotify.com/embed/episode/64qGiU89gmKE8GMzj9nEQl?utm_source=generator" width="100%" height="232" frameborder="0" allowfullscreen="allowfullscreen" allow="autoplay; clipboard-write; encrypted-media; fullscreen; picture-in-picture"></iframe></p>
<p>Jason Yap is an independent Forensic Analyst with 11 years of experience. He was previously a Senior Forensic Analyst at a Singapore- and Shanghai-based fund with approximately US$2.5 billion in AUM, with an investment focus on China A/H shares and ADRs. Prior to that, he worked at leading Asia-based restructuring and forensic accounting firms, Borrelli Walsh Limited and nTan Corporate Advisory Pte Ltd.</p>
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For our next Webinar, we are excited to welcome Insight Provider Jason Yap, CFA who will share his insights on Forensic Accounting and how to apply it to the investment process. He will go over how to bridge existing knowledge gaps of traditional fundamental analysis, with the ultimate aim of maximising portfolio returns. 




The webinar was hosted on Wednesday, 22 September 2021, 17:00 SGT/HKT.



Watch the full session:

Or subscribe to our podcast feed and listen on the go:

Jason Yap is an independent Forensic Analyst with 11 years of experience. He was previously a Senior Forensic Analyst at a Singapore- and Shanghai-based fund with approximately US$2.5 billion in AUM, with an investment focus on China A/H shares and ADRs. Prior to that, he worked at leading Asia-based restructuring and forensic accounting firms, Borrelli Walsh Limited and nTan Corporate Advisory Pte Ltd.



Smartkarma Webinar | Incorporating Forensic Accounting into Investing

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

RL Commercial REIT / Equity Capital Markets

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<p>RL Commercial REIT (RREIT), sponsored by Robinsons Land Corporation (RLC), raised around US$427m in its Philippines listing. </p>
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<p>RREIT is a commercial REIT and its initial portfolio will consist of 14 PEZA-accredited commercial real estate properties located in CBDs across Metro Manila and key cities outside Metro Manila, namely, Naga, Tarlac, Cebu and Davao. </p>
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<p>We have looked at various aspects of the REIT in our previous notes:</p>
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<p><a href="https://www.smartkarma.com/insights/rl-commercial-reit-pre-ipo-motley-crew-of-assets-has-weathered-covid-well" target="_blank" rel="noopener">RL Commercial REIT Pre-IPO - Motley crew of assets has weathered COVID well</a></p>
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<p><a href="https://www.smartkarma.com/insights/rl-commercial-reit-and-mreit-peer-comparison-one-is-much-better-shape" target="_blank" rel="noopener">RL Commercial REIT and MREIT peer comparison - One is in a much better shape</a></p>
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<li dir="ltr" aria-level="1"><a href="https://www.smartkarma.com/insights/rl-commercial-reit-ipo-needs-to-come-at-a-discount" target="_blank" rel="noopener">RL Commercial REIT IPO - Needs to Come at a Discount</a></li>
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<p>In this note, we will talk about the trading dynamics.</p>
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RL Commercial REIT (RREIT), sponsored by Robinsons Land Corporation (RLC), raised around US$427m in its Philippines listing. 


RREIT is a commercial REIT and its initial portfolio will consist of 14 PEZA-accredited commercial real estate properties located in CBDs across Metro Manila and key cities outside Metro Manila, namely, Naga, Tarlac, Cebu and Davao. 


We have looked at various aspects of the REIT in our previous notes:




RL Commercial REIT Pre-IPO - Motley crew of assets has weathered COVID well


RL Commercial REIT and MREIT peer comparison - One is in a much better shape

RL Commercial REIT IPO - Needs to Come at a Discount

In this note, we will talk about the trading dynamics.


RL Commercial REIT IPO Trading - Adequately Priced

Research from SooChow CSSD Capital Markets (Asia), SCCM Asia Research

SCCM Asia Research

Research from SooChow CSSD Capital Markets (Asia)

Thematic (Sector/Industry)

<h2>Singapore</h2><h3><a href="https://www.smartkarma.com/entities/city-developments-ltd" target="_blank" data-smartkarma-citation="entities:57" rel="noopener">City Developments (CIT SP)</a> sells Sincere stake for US$1; Raises stake in Shenzhen tech park</h3><ul><li>CIT has exited its investment in China-based Sincere Property Group for a consideration of US$1, while raising its stake in a technology park in Shenzhen. CIT has agreed to sell its 63.75% interest in HCP Chongqing Property Development (HCP Cayman) to an unrelated third party incorporated in the Republic of Seychelles. HCP Cayman holds an 80.01% equity interest in Sincere</li><li>The consideration was agreed upon after taking into account Sincere's current liquidity issues and its potential bankruptcy. For FY20, CIT had booked a S$1.78bn impairment for losses attributable to Sincere – effectively writing down 93% of its total investment in Sincere. Concurrently, CIT is increasing its stake in a company that owns 65% of Shenzhen Longgang Tusincere Tech Park. A Shenzhen Longgang District state-owned enterprise holds the remaining 35%</li></ul>

SingaporeCity Developments (CIT SP) sells Sincere stake for US$1; Raises stake in Shenzhen tech parkCIT has exited its investment in China-based Sincere Property Group for a consideration of US$1, while raising its stake in a technology park in Shenzhen. CIT has agreed to sell its 63.75% interest in HCP Chongqing Property Development (HCP Cayman) to an unrelated third party incorporated in the Republic of Seychelles. HCP Cayman holds an 80.01% equity interest in SincereThe consideration was agreed upon after taking into account Sincere's current liquidity issues and its potential bankruptcy. For FY20, CIT had booked a S$1.78bn impairment for losses attributable to Sincere – effectively writing down 93% of its total investment in Sincere. Concurrently, CIT is increasing its stake in a company that owns 65% of Shenzhen Longgang Tusincere Tech Park. A Shenzhen Longgang District state-owned enterprise holds the remaining 35%

Forensic Analyst

Jason Yap, CFA

<p>On 10 September 2021, <a href="https://www.smartkarma.com/entities/city-developments-ltd" target="_blank" data-smartkarma-citation="entities:57:1" rel="noopener">City Developments (CIT SP)</a> announced plans to exit Sincere Property ("SP") through a series of transactions including, amongst others, divesting its remaining stake in Sincere Property, exiting director and officer appointments, and continuing to protect its creditor rights under the mainland entity's possible PRC bankruptcy proceedings. </p><p>In <a href="https://www.smartkarma.com/insights/cdl-remedies-for-a-beleaguered-chinese-investment-and-belligerent-jv-partner" target="_blank" data-smartkarma-citation="insights:54449" rel="noopener">CDL - Remedies for a Beleaguered Chinese Investment and Belligerent JV Partner</a>, we discussed CDL's investment in SP and potential remedies that may be considered.  In its subsequent H1 2021 earnings release, CDL disclosed that financial exposure to SP stood at SGD117 million. The latest set of moves mark a clinical and decisive exit from the SP debacle. This article discusses the key terms of transactions and the outlook ahead.</p>

On 10 September 2021, City Developments (CIT SP) announced plans to exit Sincere Property ("SP") through a series of transactions including, amongst others, divesting its remaining stake in Sincere Property, exiting director and officer appointments, and continuing to protect its creditor rights under the mainland entity's possible PRC bankruptcy proceedings. In CDL - Remedies for a Beleaguered Chinese Investment and Belligerent JV Partner, we discussed CDL's investment in SP and potential remedies that may be considered.  In its subsequent H1 2021 earnings release, CDL disclosed that financial exposure to SP stood at SGD117 million. The latest set of moves mark a clinical and decisive exit from the SP debacle. This article discusses the key terms of transactions and the outlook ahead.

City Developments - Clinical Exit from Sincere Property Investment

<h2>Singapore</h2><h3><a href="https://www.smartkarma.com/entities/cdl-hospitality-trusts" target="_blank" data-smartkarma-citation="entities:936" rel="noopener">CDL Hospitality Trusts (CDREIT SP)</a> enters UK's build-to-rent sector with S$136m investment; 5.1% stabilized pro-forma NPI yield</h3><ul><li>CDREIT has entered into a land-purchase agreement and a development-funding agreement to invest in a build-to-rent (BTR) residential property in Manchester, United Kingdom, for a purchase consideration of GBP73.3m (S$136m). This is in line with CDREIT's strategy to strengthen its rental income base and boost its portfolio diversification. This transaction is a forward-funding arrangement, which enables CDREIT to invest in a residential BTR property at a fixed-cost, with cash flows managed over the duration of development. The pro forma stabilised NPI yield is estimated to be 5.1%, which translates to a 2.2% accretion on the FY20 DPU on a pro forma basis. CDREIT has also acquired land and buildings on the south east side of Longacre Street in Ancoats in Manchester, from BTR developer and operator Packaged Living for a consideration of GBP9.5m</li><li>In connection with the land acquisition and under a development-funding agreement, Packaged Living will redevelop the land into a residential BTR building to be known as The Castings. This will cost GBP63.8m, of which GBP58.2m will be paid out periodically over the development period; the remaining GBP5.6m will be paid shortly after project completion, expected in May24. An independent valuer has valued The Castings on a forward-funding basis at GBP76.1m, which is higher than the purchase consideration of GBP73.3m. Including the estimated furnishing and fit-out expenses of GBP3.1m, the total project cost is estimated to be GBP76.4m. The total transaction cost, including all other transaction expenses and professional fees, is GBP78.9m.</li></ul>

SingaporeCDL Hospitality Trusts (CDREIT SP) enters UK's build-to-rent sector with S$136m investment; 5.1% stabilized pro-forma NPI yieldCDREIT has entered into a land-purchase agreement and a development-funding agreement to invest in a build-to-rent (BTR) residential property in Manchester, United Kingdom, for a purchase consideration of GBP73.3m (S$136m). This is in line with CDREIT's strategy to strengthen its rental income base and boost its portfolio diversification. This transaction is a forward-funding arrangement, which enables CDREIT to invest in a residential BTR property at a fixed-cost, with cash flows managed over the duration of development. The pro forma stabilised NPI yield is estimated to be 5.1%, which translates to a 2.2% accretion on the FY20 DPU on a pro forma basis. CDREIT has also acquired land and buildings on the south east side of Longacre Street in Ancoats in Manchester, from BTR developer and operator Packaged Living for a consideration of GBP9.5mIn connection with the land acquisition and under a development-funding agreement, Packaged Living will redevelop the land into a residential BTR building to be known as The Castings. This will cost GBP63.8m, of which GBP58.2m will be paid out periodically over the development period; the remaining GBP5.6m will be paid shortly after project completion, expected in May24. An independent valuer has valued The Castings on a forward-funding basis at GBP76.1m, which is higher than the purchase consideration of GBP73.3m. Including the estimated furnishing and fit-out expenses of GBP3.1m, the total project cost is estimated to be GBP76.4m. The total transaction cost, including all other transaction expenses and professional fees, is GBP78.9m.

Singapore

City Developments Limited is a property developer and owner. The Company, through its subsidiaries, are principally engaged in the investment of properties and shares, property management, project management and the provision of consultancy services, hospitality-related information technology, and procurement services. City Developments has a global presence.

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City Developments (CIT SP)

Smartkarma Webinar | Incorporating Forensic Accounting into Investing

On 22 September, 5pm SGT, Insight Provider Jason Yap, CFA will share his insights on Forensic Accounting and how to apply it to the investment...

Smartkarma Research

RL Commercial REIT IPO Trading - Adequately Priced

RL Commercial REIT, sponsored by Robinsons Land Corporation (RLC), raised around US$427m in its Philippines listing. RREIT is a commercial REIT...

Sumeet Singh

ASEAN Builder's Scoop (13Sep21)

CIT sells Sincere stake, raises stake in Shenzhen tech park; Hoi Hup/Sunway JV acquires Flynn Park enbloc; TSH focuses in SG, Indo, AUS; MREIT...

SCCM Asia Research

City Developments - Clinical Exit from Sincere Property Investment

CDL plans to exit Sincere Property by divesting its remaining stake, exiting director appointments, and protecting its rights in a PRC bankruptcy...

Jason Yap, CFA

ASEAN Builder's Scoop (1Sep21)

CDREIT enters UK's BTR resi segment; CIT secured over S$3bn green financing to-date; DC charges rising for resi, comm sites; DILD 1H21 back in red;...

SCCM Asia Research

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