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/capitaland-ltd" target="_blank" data-smartkarma-citation="entities:55" rel="noopener">Capitaland (CAPL SP)</a> restructuring plan is deemed 'fair and reasonable'</h3><ul><li>CAPL proposed to split its business into a privately held real estate development arm, CapitaLand Investment (CLI), which would become the largest real estate investment manager (REIM) on the Singapore bourse, with pro forma real estate AUM of ~S$115bn as at 31De20. Under the planned scheme, shareholders would effectively own a direct stake in a company with lower leverage, as the pro forma net debt-to-equity ratio of 0.56 times for CLI, against CAPL’s net debt to equity of 0.68 times as at 31Dec20</li><li>Evercore Asia, the IFA, has called the value of the deal fair and reasonable from a financial point of view, as of the latest practicable date and shareholders can also choose to sell their shares on the open market, if they can get a higher price</li><li>The implied consideration represents a premium over the volume-weighted average price up to date of the restructuring announcement. The implied value in the deal includes both a consideration of S$4.102/share and the FY20 dividend for those who held shares by 4May21. CAPL will hold an EGM and a scheme meeting on 10Aug21 for shareholders to decide on the planned transaction.</li></ul>

SingaporeCapitaland (CAPL SP) restructuring plan is deemed 'fair and reasonable'CAPL proposed to split its business into a privately held real estate development arm, CapitaLand Investment (CLI), which would become the largest real estate investment manager (REIM) on the Singapore bourse, with pro forma real estate AUM of ~S$115bn as at 31De20. Under the planned scheme, shareholders would effectively own a direct stake in a company with lower leverage, as the pro forma net debt-to-equity ratio of 0.56 times for CLI, against CAPL’s net debt to equity of 0.68 times as at 31Dec20Evercore Asia, the IFA, has called the value of the deal fair and reasonable from a financial point of view, as of the latest practicable date and shareholders can also choose to sell their shares on the open market, if they can get a higher priceThe implied consideration represents a premium over the volume-weighted average price up to date of the restructuring announcement. The implied value in the deal includes both a consideration of S$4.102/share and the FY20 dividend for those who held shares by 4May21. CAPL will hold an EGM and a scheme meeting on 10Aug21 for shareholders to decide on the planned transaction.

ASEAN Builder's Scoop (19Jul21) - CAPL Restructuring Plan Fair and Reasonable

<h2>Singapore</h2><h3><a href="https://www.smartkarma.com/entities/mapletree-logistics-trust" target="_blank" data-smartkarma-citation="entities:16035" rel="noopener">Mapletree Logistics Trust (MLT SP)</a> looks to acquire a Changi logistics property for S$24.5m; Stabilized NPI yield of ~6.2% </h3><ul><li>MLT has been granted an option to acquire 9 Changi South Street 2 from RSH Holdings for a purchase price of S$24.5m (vs. independent valuation of S$24.6m as at 25Jun21). The property, a purpose-built facility comprising a part 3-storey, part 4-storey temperature-controlled warehouse with ancillary office and other amenities, has a GFA of 11,506sqm. It is located at a prime location and a relatively long remaining land tenure of ~33.3 years. The property is also adjacent to its existing property at 15 Changi South Street 2, thus presenting the opportunity for potential economies of scale</li><li>Its favourable location should attract demand from industries involved in high-value and time-sensitive goods such as electronics and pharmaceutical, as well as e-commerce firms and third-party logistics players (“3PLs”) looking to expand in the Changi South/East region. The Property will be sold with vacant possession and the Manager is in talks with an international 3PL to lease it as the anchor tenant</li><li>The Proposed Acquisition is subject to, among others, approval from JTC Corporation and exercise of the OTP by MLT. The total purchase consideration of S$27.2m (including transaction costs of c.S$2.7m) will be funded by debt and is expected to be completed by 3QFY21/22</li><li>Upon completion, MLT’s aggregate leverage ratio will be ~38.5%, while MLT’s total portfolio will comprise 164 properties with total AUM of S$10.8bn. The proposed acquisition is expected to generate a stabilised NPI yield of ~6.2% based on the purchase price and initial land premium, and it is also expected to be DPU accretive.</li></ul>

SingaporeMapletree Logistics Trust (MLT SP) looks to acquire a Changi logistics property for S$24.5m; Stabilized NPI yield of ~6.2% MLT has been granted an option to acquire 9 Changi South Street 2 from RSH Holdings for a purchase price of S$24.5m (vs. independent valuation of S$24.6m as at 25Jun21). The property, a purpose-built facility comprising a part 3-storey, part 4-storey temperature-controlled warehouse with ancillary office and other amenities, has a GFA of 11,506sqm. It is located at a prime location and a relatively long remaining land tenure of ~33.3 years. The property is also adjacent to its existing property at 15 Changi South Street 2, thus presenting the opportunity for potential economies of scaleIts favourable location should attract demand from industries involved in high-value and time-sensitive goods such as electronics and pharmaceutical, as well as e-commerce firms and third-party logistics players (“3PLs”) looking to expand in the Changi South/East region. The Property will be sold with vacant possession and the Manager is in talks with an international 3PL to lease it as the anchor tenantThe Proposed Acquisition is subject to, among others, approval from JTC Corporation and exercise of the OTP by MLT. The total purchase consideration of S$27.2m (including transaction costs of c.S$2.7m) will be funded by debt and is expected to be completed by 3QFY21/22Upon completion, MLT’s aggregate leverage ratio will be ~38.5%, while MLT’s total portfolio will comprise 164 properties with total AUM of S$10.8bn. The proposed acquisition is expected to generate a stabilised NPI yield of ~6.2% based on the purchase price and initial land premium, and it is also expected to be DPU accretive.

ASEAN Builder's Scoop (12Jul21) - MLT Acquires Changi Logistics at 6.2% Yield

<h2>Singapore</h2><h3><a href="https://www.smartkarma.com/entities/cromwell-european-real-estate" target="_blank" data-smartkarma-citation="entities:25889" rel="noopener">Cromwell European REIT (CERT SP)</a> divests a non-core asset in France at 21% premium to latest valuation</h3><ul><li>CERT has entered into a promissory deed with an affiliate of one of Europe’s leading boutique real estate investment funds, to divest the Parc de Popey asset located at 5 Chemin de Popey in Bar-le-Duc, France. The French Asset consists of a single large warehouse building with ancillary office accommodation totalling 15,724sqm, built in 1995. Currently occupied by a major postal service and logistics company, which is largely owned by the French government, the asset is used as an industrial sorting parcel platform</li><li>CERT will sell the French Asset for a sale consideration of EUR5.8m (~S$9.3m), which would be satisfied fully in cash. It is 53% higher than the IPO purchase price and 21% higher than its most recent valuation. A divestment fee of EUR29,000 (being 0.5% of the sale consideration) is payable to the Manager. The divestment is expected to be completed in 3Q21 and has no material effect on CERT’s NTA.</li></ul>

SingaporeCromwell European REIT (CERT SP) divests a non-core asset in France at 21% premium to latest valuationCERT has entered into a promissory deed with an affiliate of one of Europe’s leading boutique real estate investment funds, to divest the Parc de Popey asset located at 5 Chemin de Popey in Bar-le-Duc, France. The French Asset consists of a single large warehouse building with ancillary office accommodation totalling 15,724sqm, built in 1995. Currently occupied by a major postal service and logistics company, which is largely owned by the French government, the asset is used as an industrial sorting parcel platformCERT will sell the French Asset for a sale consideration of EUR5.8m (~S$9.3m), which would be satisfied fully in cash. It is 53% higher than the IPO purchase price and 21% higher than its most recent valuation. A divestment fee of EUR29,000 (being 0.5% of the sale consideration) is payable to the Manager. The divestment is expected to be completed in 3Q21 and has no material effect on CERT’s NTA.

ASEAN Builder's Scoop (22Jun21) - CERT Divests a Non-Core France Asset

<h2>Singapore</h2><h3>The Ascott Limited to acquire two properties in France and Vietnam for S$210m through its private fund</h3><ul><li>The Ascott Limited (Ascott) has entered into two agreements to acquire two properties in Paris, France and Hanoi, Vietnam for about S$210m. The acquisition of the two properties through the Ascott Serviced Residence Global Fund (ASRGF), Ascott’s private equity fund with Qatar Investment Authority, will boost Ascott’s total fund assets under management (FUM) to about S$8bn. Both properties will be acquired on a turnkey basis and are expected to open in 2024</li><li>The acquisition in Paris is a freehold asset which will be refurbished to introduce Ascott’s first Co-living property in Europe under the lyf brand. Named livelyfhere Gambetta Paris, the 139-unit Co-living property is located in a vibrant district in the 20th arrondissement, near galleries, cinemas, trendy cafés and restaurants, street art and music venues. With this addition, Ascott has a total of 16 lyf properties with more than 3,100 units across 13 cities and nine countries in Asia Pacific and Europe. The acquisition of livelyfhere Gambetta Paris, Ascott’s first lyf property in Europe, follows the recent opening of Ascott’s first lyf property in Japan, lyf Tenjin Fukuoka. Five more lyf properties in Singapore and China are set to open in 2021. With this addition, Ascott will have over 3,500 units in 34 properties across 13 cities in France</li><li>The acquisition in Hanoi is the 364-unit Somerset Metropolitan West Hanoi. It is located in Hanoi’s new CBD, close to several government agencies as well as local and international corporations. Somerset Metropolitan West Hanoi is a 10-minute drive to the Vietnam National Convention Centre, the largest convention centre in Vietnam and the Noi Bai International Airport is a 30-minute drive away. Somerset Metropolitan West Hanoi will increase Ascott’s portfolio to over 7,600 units across 31 properties in 10 cities for Vietnam</li><li>With the acquisition of livelyfhere Gambetta Paris and Somerset Metropolitan West Hanoi, there will be eight properties with close to 1,700 units held under the ASRGF. The fund has five operational properties, Ascott Sudirman Jakarta, Citadines Islington London, La Clef ChampsÉlysées Paris, lyf Funan Singapore, and Quest NewQuay Docklands Melbourne. Citadines Walker North Sydney is slated to open in 2022. </li></ul>

SingaporeThe Ascott Limited to acquire two properties in France and Vietnam for S$210m through its private fundThe Ascott Limited (Ascott) has entered into two agreements to acquire two properties in Paris, France and Hanoi, Vietnam for about S$210m. The acquisition of the two properties through the Ascott Serviced Residence Global Fund (ASRGF), Ascott’s private equity fund with Qatar Investment Authority, will boost Ascott’s total fund assets under management (FUM) to about S$8bn. Both properties will be acquired on a turnkey basis and are expected to open in 2024The acquisition in Paris is a freehold asset which will be refurbished to introduce Ascott’s first Co-living property in Europe under the lyf brand. Named livelyfhere Gambetta Paris, the 139-unit Co-living property is located in a vibrant district in the 20th arrondissement, near galleries, cinemas, trendy cafés and restaurants, street art and music venues. With this addition, Ascott has a total of 16 lyf properties with more than 3,100 units across 13 cities and nine countries in Asia Pacific and Europe. The acquisition of livelyfhere Gambetta Paris, Ascott’s first lyf property in Europe, follows the recent opening of Ascott’s first lyf property in Japan, lyf Tenjin Fukuoka. Five more lyf properties in Singapore and China are set to open in 2021. With this addition, Ascott will have over 3,500 units in 34 properties across 13 cities in FranceThe acquisition in Hanoi is the 364-unit Somerset Metropolitan West Hanoi. It is located in Hanoi’s new CBD, close to several government agencies as well as local and international corporations. Somerset Metropolitan West Hanoi is a 10-minute drive to the Vietnam National Convention Centre, the largest convention centre in Vietnam and the Noi Bai International Airport is a 30-minute drive away. Somerset Metropolitan West Hanoi will increase Ascott’s portfolio to over 7,600 units across 31 properties in 10 cities for VietnamWith the acquisition of livelyfhere Gambetta Paris and Somerset Metropolitan West Hanoi, there will be eight properties with close to 1,700 units held under the ASRGF. The fund has five operational properties, Ascott Sudirman Jakarta, Citadines Islington London, La Clef ChampsÉlysées Paris, lyf Funan Singapore, and Quest NewQuay Docklands Melbourne. Citadines Walker North Sydney is slated to open in 2022. 

ASEAN Builder's Scoop (21Jun21) - Ascott Acquires Paris and Hanoi Props

Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

DZT Research

DZT Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

Quantitative Analysis

<ul>
<li>We analyzed the changes in short interest of Stock Exchange of Thailand as of Jul 3rd. We estimate that they had an aggregated short interest worth USD3.1bn.</li>
<li>We tabulate league tables for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.</li>
<li>We highlight short interest changes in SCB X, Airports of Thailand, SCC, Bumrungrad Hospital, Bangchak, Airports Of Thailand, Scb X, Scc, Bumrungrad Hospital.</li>
</ul>


We analyzed the changes in short interest of Stock Exchange of Thailand as of Jul 3rd. We estimate that they had an aggregated short interest worth USD3.1bn.
We tabulate league tables for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.
We highlight short interest changes in SCB X, Airports of Thailand, SCC, Bumrungrad Hospital, Bangchak, Airports Of Thailand, Scb X, Scc, Bumrungrad Hospital.


Thailand Short Interest Weekly (Jul 3rd): SCB X, Airports of Thailand, SCC, Bumrungrad Hospital, Scc

Thailand

Asset World Corporation invests in, develops, and manages real estate properties in Thailand, focusing on hospitality, lifestyle destinations, and commercial workspaces. The company operates through two segments: Hotel and Related Services, and Rental and Rendering of Commercial Building Services. It develops and owns hotels, community shopping malls, and mixed-use properties. Headquartered in Bangkok, Thailand, the company was founded in 2009.

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Asset World Corporation (AWC TB)

ASEAN Builder's Scoop (19Jul21) - CAPL Restructuring Plan Fair and Reasonable

CAPL restructuring plan fair and reasonable; MPI restructures logistics biz; AWC to invest THB100bn in mixed-use developments; Indo extends tax...

SCCM Asia Research

ASEAN Builder's Scoop (12Jul21) - MLT Acquires Changi Logistics at 6.2% Yield

MLT acquires Changi logistics at 6.2% yield; FRAG privatization offer; Selo Group enters Malaysian market; AWC bets on tourism rebound; BI to...

SCCM Asia Research

ASEAN Builder's Scoop (22Jun21) - CERT Divests a Non-Core France Asset

CERT divests a non-core France asset; CBD Grade-A office rents reversing up in 2Q21; China REITs solid IPO debut; MEG sees resi sales uptick; HVN...

SCCM Asia Research

ASEAN Builder's Scoop (21Jun21) - Ascott Acquires Paris and Hanoi Props

Ascott acquires Paris and Hanoi props; CREITs vs SREITs competition; LOGOS/PURE partners for Jakarta DC; DILD 5M21 mrkt sales tripled YoY; VLL eyes...

SCCM Asia Research

Thailand Short Interest Weekly (Jul 3rd): SCB X, Airports of Thailand, SCC, Bumrungrad Hospital, Scc

We analyzed SET short interest report for the past week and highlighted short interest changes in SCB X (SCB TB), Airports of Thailand (AOT TB),...

Ke Yan, CFA, FRM

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