Asean-focused. Ex-Head of Thai Research

Athaporn Arayasantiparb, CFA

Asean (Thailand) Focused Independent Research

M Corp Review

M Corp is led by Athaporn Arayasantiparb who served as Head of Research for UOB and ANZ in Thailand and was an award-winning telecoms analyst at UBS in 2010 (AsiaMoney Thailand category) and Regional Strategist for DMG in Singapore. Prior to that, he also served as Kasikornbank credit analyst and scholar. He has a total work experience of 17 years, of which 14 were in research and 4 in research management roles. He started his career as an engineer for PTT and currently manages family investments. He holds an MBA from Stern (NYU) and CFA Charter since 2006. Apart from IPO Radar, which focuses on future listings, MCorp Review also provides six on-going thematic series ranked by frequency in descending order, namely: 1) Silicon Stories (technology) 2) Sathorn Series (financial services) 3) Thai-Coons (billionaire origin stories) 4) Reality Check (data-driven, investigative) 5) Thai Media Spotlight; and 6) Thai Macro Watch (global market drivers).

Equity Capital Markets

B&G Leasehold REIT / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/b-g-leasehold-reit" target="_blank" data-smartkarma-citation="entities:28671:1" rel="noopener">B&amp;G Leasehold REIT (BGREIT TB)</a> is a single-asset REIT that just manages the Interchange 21 Building on Asoke Road where the subway and skytrain lines intersect, hence the name. <ul>
<li>
Citigroup, one of America's Big Three Banks, leases almost 40% of the space in this building and uses it for a trendy Thai head office. Only around 14% of the space is for retail, which commands higher rental rates but a weaker outlook in the future.</li>
<li>
The IPO is good for 600m units at Bt6bn, and the REIT also plans on taking Bt1.5bn in debt. The process is managed by SCB Group, which also acts as Trustee. However, they will be allowed to take on more debt if the credit is rated as investment grade (BBB or better).</li>
<li>
Valuation. The base case, using income method, places our price target at Bt11/sh for a target yield of 6.5%, which implies a small 10% upside to the IPO. Yet, it is still an interesting IPO because of the low risk involved at the anchor tenant level and high occupancy rate (consistently above 95%).</li>
<li>
Key risks to highlight includes: 1) non-extension by anchor tenants; 2) concentration risk; 3) impairment risks; and 4) competition from rival office buildings.</li>
</ul>

B&amp;G Leasehold REIT (BGREIT TB) is a single-asset REIT that just manages the Interchange 21 Building on Asoke Road where the subway and skytrain lines intersect, hence the name. 

Citigroup, one of America's Big Three Banks, leases almost 40% of the space in this building and uses it for a trendy Thai head office. Only around 14% of the space is for retail, which commands higher rental rates but a weaker outlook in the future.

The IPO is good for 600m units at Bt6bn, and the REIT also plans on taking Bt1.5bn in debt. The process is managed by SCB Group, which also acts as Trustee. However, they will be allowed to take on more debt if the credit is rated as investment grade (BBB or better).

Valuation. The base case, using income method, places our price target at Bt11/sh for a target yield of 6.5%, which implies a small 10% upside to the IPO. Yet, it is still an interesting IPO because of the low risk involved at the anchor tenant level and high occupancy rate (consistently above 95%).

Key risks to highlight includes: 1) non-extension by anchor tenants; 2) concentration risk; 3) impairment risks; and 4) competition from rival office buildings.


IPO Radar: BGREIT, the Office REIT that Hosts Citi's Thai HQ

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B&G Leasehold REIT (BGREIT TB)

IPO Radar: BGREIT, the Office REIT that Hosts Citi's Thai HQ

B&G Leasehold REIT (BGREIT TB) is a single-asset REIT that just manages the Interchange 21 Building on Asoke Road where the subway and skytrain...

Athaporn Arayasantiparb, CFA

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