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

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.

Mori Hills REIT Investment Corporation / Event-Driven

<ul>
<li>In the past 24 months, J-REIT sponsors have bought units in their REITs at sharp discounts to PNAV to raise PNAV and reduce overhang pressure. </li>
<li>The goal is, basically transparently, to get PNAV to a level at which the REIT can buy more properties from the sponsor, who carries them at a much higher WACC.</li>
<li>Mori Building has announced a 4.99% buy on <a href="https://www.smartkarma.com/entities/mori-hills-reit-investment-corporation" target="_blank" data-smartkarma-citation="entities:56:1" rel="noopener">Mori Hills REIT Investment Corporation (3234 JP)</a> which is a Very Big portion of Max Real World Float. This should influence price.</li>
</ul>


In the past 24 months, J-REIT sponsors have bought units in their REITs at sharp discounts to PNAV to raise PNAV and reduce overhang pressure. 
The goal is, basically transparently, to get PNAV to a level at which the REIT can buy more properties from the sponsor, who carries them at a much higher WACC.
Mori Building has announced a 4.99% buy on Mori Hills REIT Investment Corporation (3234 JP) which is a Very Big portion of Max Real World Float. This should influence price.


Mori Hills REIT (3234) - Large Sponsor Buy in Market as % of Max Real World Float

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

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

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)

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

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

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

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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

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

Mori Hills REIT (3234) - Large Sponsor Buy in Market as % of Max Real World Float

Mori Building has announced a big buy of Mori Hills REIT, the cheapest PNAV J-REIT in the office sector, and an above-average div yield. The goal...

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

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