Index Rebal/Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal/Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Event-Driven

<p>Japan's largest Office REIT <a href="https://www.smartkarma.com/entities/nippon-building-fund-inc" target="_blank" data-smartkarma-citation="entities:1900:1" rel="noopener">Nippon Building Fund (8951 JP)</a> ("NBF") announced a ¥140bn (~US$1.3bn) <a href="https://www.nbf-m.com/nbf_e/release/files/20201009_Notice%20Concerning%20Issue%20of%20New%20Investment%20Units%20and%20Secondry%20Offering%20on%20Investments%20Units.pdf" target="_blank" rel="noopener">follow-on equity offering</a> on 9th October 2020 to fund their recent acquisition of Shinjuku Mitsui Building and Gran Tokyo South Tower. </p>
<p>This is the biggest REIT offering in Japan this year so far, is large historically, and is the first offering by NBF, the largest Office REIT by Market Cap since 2014.</p>
<p>NBF plans to offer 171,000 units in the Domestic Primary Offering and 58,000 units in the International Offering (mainly in the U.S., Europe and Asia). However, final allocation can be different depending on demand conditions. The over-allotment quantity will be 11,500 units. </p>
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<div class="content-caption">Source: Quiddity, Capital IQ (Data)</div>
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<p><em>As always, there is more below the fold. </em></p>

Japan's largest Office REIT Nippon Building Fund (8951 JP) ("NBF") announced a ¥140bn (~US$1.3bn) follow-on equity offering on 9th October 2020 to fund their recent acquisition of Shinjuku Mitsui Building and Gran Tokyo South Tower. 
This is the biggest REIT offering in Japan this year so far, is large historically, and is the first offering by NBF, the largest Office REIT by Market Cap since 2014.
NBF plans to offer 171,000 units in the Domestic Primary Offering and 58,000 units in the International Offering (mainly in the U.S., Europe and Asia). However, final allocation can be different depending on demand conditions. The over-allotment quantity will be 11,500 units. 


Source: Quiddity, Capital IQ (Data)

As always, there is more below the fold. 

Nippon Building Fund (8951 JP) REIT Offering: Take It

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

Smartkarma

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

Research Reinvented

Equity Capital Markets

Mori Hills REIT Investment Corporation / Equity Capital Markets

Mori Hills REIT Investment Corporation (3234 JP)

<p><a href="https://www.smartkarma.com/entities/56" target="_blank" data-smartkarma-citation="entities:56:1">Mori Hills Reit Investment C (3234 JP)</a> plans to raise US$142m to part fund its purchase of an additional stake in two of its existing office towers. The company had increased its stake in the two assets earlier this year and this deal will fund a second helping of the same assets at similar valuations. As per the company's revised forecasts, the deal will be DPU accretive. The deal scores well on our framework owing to the strong price and earnings momentum, while past deals too have done well. </p>…

Mori Hills Reit Investment C (3234 JP) plans to raise US$142m to part fund its purchase of an additional stake in two of its existing office towers. The company had increased its stake in the two assets earlier this year and this deal will fund a second helping of the same assets at similar valuations. As per the company's revised forecasts, the deal will be DPU accretive. The deal scores well on our framework owing to the strong price and earnings momentum, while past deals too have done well. …

Mori Hills REIT Placement - Buying Piece by Piece, Again

Japan/Asia Long-Short, LightStream Research

Mio Kato

Japan/Asia Long-Short

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

<p><a href="https://www.smartkarma.com/entities/56" target="_blank" data-smartkarma-citation="entities:56:1">Mori Hills Reit Investment C (3234 JP)</a> has announced the issuance of 118,400 new units and a 5,920 unit overallotment (6.8% dilution and 0.3% dilution respectively) to purchase stakes within Toranomon Hills and Holland Hills. This represents the third set of acquisitions within these properties, all of which have targeted floors 28-35 of Toranomon Hills and floors 3-4, part of floor 5 and floors 14-18 and floors 22-24 of Holland Hills.</p><table class="table table-striped"><tbody>
<tr>
<td>Details</td>
</tr>
<tr>
<td><strong>New Investment Units</strong></td>
<td><strong>118,400</strong></td>
</tr>
<tr>
<td><strong>Overallotment</strong></td>
<td><strong>5,9</strong></td>
</tr>
</tbody></table>…

Mori Hills Reit Investment C (3234 JP) has announced the issuance of 118,400 new units and a 5,920 unit overallotment (6.8% dilution and 0.3% dilution respectively) to purchase stakes within Toranomon Hills and Holland Hills. This represents the third set of acquisitions within these properties, all of which have targeted floors 28-35 of Toranomon Hills and floors 3-4, part of floor 5 and floors 14-18 and floors 22-24 of Holland Hills.

Details


New Investment Units
118,400


Overallotment
5,9

…

Mori Hills REIT: Unit Issuance Continues Investments in Premium Offices

<p>Orix JREIT plans to raise US$135m/JPY15bn in order to acquire two properties. The company has been issuing equity to acquire new assets, every year for the past three years once in March and then again in the second half of the year.</p><p>We had covered the previous Mar-15 deal, <a href="https://www.smartkarma.com/insights/orix-jreit-8954-jp-another-placement-for-acquisition-will-be-dpu-accretive" target="_blank" data-smartkarma-citation="insights:513">Orix JREIT (8954 JP) - Another placement for acquisition; will be DPU accretive</a>, which went on to yield a 5% upside in the first month.</p><p>The deal scores a positive score on our framework as: company's previous deals have all…</p>

Orix JREIT plans to raise US$135m/JPY15bn in order to acquire two properties. The company has been issuing equity to acquire new assets, every year for the past three years once in March and then again in the second half of the year.We had covered the previous Mar-15 deal, Orix JREIT (8954 JP) - Another placement for acquisition; will be DPU accretive, which went on to yield a 5% upside in the first month.The deal scores a positive score on our framework as: company's previous deals have all…

Orix JREIT - Its that Time of the Year Again

<p>Mori Hills plans to raise US$223m through its global offering in order to fund its purchase of three additional floors in Roppongi Hills Mori Tower from its parent.</p><p>The deal scores a marginally positive score on our framework. The REIT already owns a few floors in the building and has been progressively buying more, hence, this remain a safe acquisition of a familiar asset. </p><h2>Placement specifics</h2><ul>
<li>Company Name: Mori Hills REIT Investment Corp (MHR)</li>
<li>Ticker: 3234 JP Equity</li>
<li>Primary placement -Global follow…</li>
</ul>

Mori Hills plans to raise US$223m through its global offering in order to fund its purchase of three additional floors in Roppongi Hills Mori Tower from its parent.The deal scores a marginally positive score on our framework. The REIT already owns a few floors in the building and has been progressively buying more, hence, this remain a safe acquisition of a familiar asset. Placement specifics
Company Name: Mori Hills REIT Investment Corp (MHR)
Ticker: 3234 JP Equity
Primary placement -Global follow…


Japan

MORI HILLS REIT INVESTMENT CORPORATION is a real estate investment trust (REIT). The Company invests in real estate properties such as commercial and office buildings.

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Mori Hills REIT Investment Corporation (3234 JP)

Nippon Building Fund (8951 JP) REIT Offering: Take It

NBF's ¥140bn Offering is the largest J-REIT Offering in 2020. Historically, NBF Follow-On Offerings outperform TSEREIT and perform on an absolute...

Janaghan Jeyakumar, CFA

Mori Hills REIT Placement - Buying Piece by Piece, Again

Mori Hills Reit Investment C (3234 JP) plans to raise US$142m to part fund its purchase of an additional stake in two of its existing office...

Sumeet Singh

Mori Hills REIT: Unit Issuance Continues Investments in Premium Offices

Mori Hills Reit Investment C (3234 JP) has announced the issuance of 118,400 new units and a 5,920 unit overallotment (6.8% dilution and 0.3%...

Mio Kato

Orix JREIT - Its that Time of the Year Again

Orix JREIT plans to raise US$135m/JPY15bn in order to acquire two properties. The company has been issuing equity to acquire new assets, every year...

Sumeet Singh

Mori Hills REIT - Buying Piece by Piece

Mori Hills plans to raise US$223m through its global offering in order to fund its purchase of three additional floors in Roppongi Hills Mori Tower...

Sumeet Singh

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