Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>It has been a sport of the J-REITs the past 18-24mos to buy back their units at well under PNAV 1.0x and to have sponsor entities up their stakes. </li>
<li>The goal? Get valuation to PNAV1+ so they can, in good faith, get the REIT to buy assets with an equity raise. Below PNAV1 would work with a rights offering.</li>
<li>Now the <a href="https://www.smartkarma.com/entities/orix-jreit-inc" target="_blank" data-smartkarma-citation="entities:314:1" rel="noopener">Orix JREIT Inc (8954 JP)</a> has announced it will triple its small holding. Meaningful portion of ADV, more meaningful portion of MRWF.</li>
</ul>


It has been a sport of the J-REITs the past 18-24mos to buy back their units at well under PNAV 1.0x and to have sponsor entities up their stakes. 
The goal? Get valuation to PNAV1+ so they can, in good faith, get the REIT to buy assets with an equity raise. Below PNAV1 would work with a rights offering.
Now the Orix JREIT Inc (8954 JP) has announced it will triple its small holding. Meaningful portion of ADV, more meaningful portion of MRWF.


ORIX JREIT (8954) Sponsor To Buy Units - Looks Minor, It's Bigger

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

Nippon Building Fund / Equity Capital Markets

<ul>
<li>
<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> is looking to raise around US$122m in its Primary Offering, to fund the acquisition of Frontier Musashikosugi N Building and S Building.</li>
<li>Unusually for Japan, the acquisition was announced at the end of last month, while the raising has only been announced today.</li>
<li>In this note, we talk about the deal dynamics and run the deal through our ECM framework.</li>
</ul>



Nippon Building Fund (8951 JP) is looking to raise around US$122m in its Primary Offering, to fund the acquisition of Frontier Musashikosugi N Building and S Building.
Unusually for Japan, the acquisition was announced at the end of last month, while the raising has only been announced today.
In this note, we talk about the deal dynamics and run the deal through our ECM framework.


Nippon Building Fund Placement - Small Deal but Lacks Accretion

Asia Real Estate News Tracker, Asia Real Estate Tracker

Asia Real Estate Tracker

Asia Real Estate News Tracker

Tracking developments across Asia's regional real estate markets

Equity Bottom-Up

<ul><li>Hotel Indigo Auckland is up for sale by McVay Real Estate and Whillans Realty Group, offering a prime investment opportunity.</li><li>CDL Chairman accuses son of attempted coup, but Kwek remains CEO, ensuring stability within the company's leadership.</li><li>Mapletree makes a strategic move by buying a Hong Kong site for $473M at a significant discount, positioning itself for future growth.</li></ul>

Hotel Indigo Auckland is up for sale by McVay Real Estate and Whillans Realty Group, offering a prime investment opportunity.CDL Chairman accuses son of attempted coup, but Kwek remains CEO, ensuring stability within the company's leadership.Mapletree makes a strategic move by buying a Hong Kong site for $473M at a significant discount, positioning itself for future growth.

Asia Real Estate Tracker (27-Feb-2025): Hotel Indigo Auckland for Sale - McVay & Whillans Realty.

David Blennerhassett

<ul>
<li>MBK has made a legally binding bid for <a href="https://www.smartkarma.com/entities/makino-milling-machine-co" target="_blank" data-smartkarma-citation="entities:5200:1" rel="noopener">Makino Milling Machine Co (6135 JP)</a>. Stay long if you still hold or buy the dip. Buy at under ¥11,200.</li>
<li>Given the share price decline, <a href="https://www.smartkarma.com/entities/nufarm-ltd-australia" target="_blank" data-smartkarma-citation="entities:1128:1" rel="noopener">Nufarm (NUF AU)</a>'s board is under pressure to do "something". Nufarm would be better off selling its entire operations, as opposed to offloading divisions.</li>
<li>
<a href="https://www.smartkarma.com/entities/dic-corp" target="_blank" data-smartkarma-citation="entities:7343:1" rel="noopener">Dic Corp (4631 JP)</a> is (also) under pressure from activist Oasis Management. Buy large dips rather than chase another day of a big gain.</li>
</ul>


MBK has made a legally binding bid for Makino Milling Machine Co (6135 JP). Stay long if you still hold or buy the dip. Buy at under ¥11,200.
Given the share price decline, Nufarm (NUF AU)'s board is under pressure to do "something". Nufarm would be better off selling its entire operations, as opposed to offloading divisions.

Dic Corp (4631 JP) is (also) under pressure from activist Oasis Management. Buy large dips rather than chase another day of a big gain.


Last Week in Event SPACE: Makino Milling Machine, Nufarm, Dic Corp, HKBN

Japanese Turnaround Situations, Short-Ideas, Azabu Research

Michael Allen

Japanese Turnaround Situations, Short-Ideas

Azabu Research

Azabu Research is a publishing and consulting firm focused on distressed equities in the Japanese market. We specialize in turnaround strategies, corporate combinations, divestitures, and restructuring.

Publisher of the Tokyo Turnaround Letter, which conducts the most thorough research possible of publicly available information, including forensic tests for fraudulent overstatement of assets and understatement of liabilities, as well as rigorous market and industry analysis to assess the underlying strengths of the company’s products or services, the appropriateness of the company’s turnaround strategy, and the skill of its current management team. The average length of a report exceeds 25 pages of text and tables, excluding any disclosures or executive summaries.

We have more than 30 years of experience in applying this process to distressed equities in Japan. Additionally, subscribers have free access to detailed, yet easily navigated earnings models for the target company as well as the top five comparable companies, and unlimited access to the analyst for follow-up questions.

Azabu Research also conducts be-spoke research on a project basis, and provides consulting services to companies looking to restructure, divest, make acquisitions, go public, or improve investor sentiment toward their stock.

Independent Research and Consulting Firm

<ul>
<li>Adding a new strategy I call TARP – Tariff-Proof at a Reasonable Price. Stocks need to have little or no direct or indirect exposure to the US unless locally procured.</li>
<li>Kotobuki (2222), Kikkoman (2801), and Orix JREIT (8954) are all close to bullet-proof.</li>
<li>Yamada (9831) proves that what the market is looking for is a concept of a plan, not necessarily results.</li>
</ul>


Adding a new strategy I call TARP – Tariff-Proof at a Reasonable Price. Stocks need to have little or no direct or indirect exposure to the US unless locally procured.
Kotobuki (2222), Kikkoman (2801), and Orix JREIT (8954) are all close to bullet-proof.
Yamada (9831) proves that what the market is looking for is a concept of a plan, not necessarily results.


Japan

ORIX JREIT Inc. is a real estate investment trust (REIT) which invests in securitized real estate products.  The Company directly invests in real estate properties such as offices, rental housings, and hotels.

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Orix JREIT Inc (8954 JP)

Nippon Building Fund Placement - Small Deal but Lacks Accretion

Nippon Building Fund (8951 JP) is looking to raise around US$122m in its Primary Offering, to fund the acquisition of Frontier Musashikosugi N...

Sumeet Singh

Asia Real Estate Tracker (27-Feb-2025): Hotel Indigo Auckland for Sale - McVay & Whillans Realty.

Hotel Indigo Auckland is for sale by McVay Real Estate & Whillans Realty Group, while CDL Chairman accuses son of coup attempt, Kwek stays CEO....

Asia Real Estate Tracker

Last Week in Event SPACE: Makino Milling Machine, Nufarm, Dic Corp, HKBN

It’s Sunday! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed during the...

David Blennerhassett

Unloved Japan: Cheap & Tariff-Proof

New strategy TARP focuses on investing in stocks with little to no exposure to the US, highlighting companies like Kotobuki, Kikkoman, and Orix...

Michael Allen

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ORIX JREIT (8954) Sponsor To Buy Units - Looks Minor, It's Bigger

ORIX J-REIT has announced its parent will buy 2.0% of units to increase its stake from 1% to 3%. This doesn't sound like much, but it isn't small...

Travis Lundy

Nippon Building Fund Placement - Small Deal but Lacks Accretion

Nippon Building Fund (8951 JP) is looking to raise around US$122m in its Primary Offering, to fund the acquisition of Frontier Musashikosugi N...

Sumeet Singh

Asia Real Estate Tracker (27-Feb-2025): Hotel Indigo Auckland for Sale - McVay & Whillans Realty.

Hotel Indigo Auckland is for sale by McVay Real Estate & Whillans Realty Group, while CDL Chairman accuses son of coup attempt, Kwek stays CEO....

Asia Real Estate Tracker

Last Week in Event SPACE: Makino Milling Machine, Nufarm, Dic Corp, HKBN

It’s Sunday! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed during the...

David Blennerhassett

Unloved Japan: Cheap & Tariff-Proof

​New strategy TARP focuses on investing in stocks with little to no exposure to the US, highlighting companies like Kotobuki, Kikkoman, and Orix...

Michael Allen

New strategy TARP focuses on investing in stocks with little to no exposure to the US, highlighting companies like Kotobuki, Kikkoman, and Orix...