Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Today, <a href="https://www.smartkarma.com/entities/tokyu-corp" target="_blank" data-smartkarma-citation="entities:3357:1" rel="noopener">Tokyu Corp (9005 JP)</a> announced it would increase its stake its family REIT, buying up to 48,880 units or 5.0% of units out over the next six months.</li>
<li>This comes a couple of days after Hankyu Hanshin announced the same for its REIT, discussed <a href="https://www.smartkarma.com/insights/hankyu-hanshin-reit-8977-good-fundamental-news-a-bigly-buyback-and-cascading-flows-to-come" target="_blank" rel="noopener">here</a>. Others have done so before. Tokyu has. Others will do so going forward. </li>
<li>The main reason? Squeeze the 'share' price higher. Get the REIT to 1.0x PNAV then stuff it with sponsor-held properties. That's not bad. The goal is a higher price.</li>
</ul>


Today, Tokyu Corp (9005 JP) announced it would increase its stake its family REIT, buying up to 48,880 units or 5.0% of units out over the next six months.
This comes a couple of days after Hankyu Hanshin announced the same for its REIT, discussed here. Others have done so before. Tokyu has. Others will do so going forward. 
The main reason? Squeeze the 'share' price higher. Get the REIT to 1.0x PNAV then stuff it with sponsor-held properties. That's not bad. The goal is a higher price.


Tokyu Corp (9005) To Lift Stake in Tokyu REIT (8957) Again - Bigger Than You Think It Is

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

<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>Warburg Pincus and Wide Creek JV have acquired GreenFort, a Korean logistic asset, marking their second investment in the country.</li><li>Gaw Capital is set to discuss a joint venture with MTD TV for the development of 1,200 homes in an upcoming interview on Wednesday.</li><li>Mitsubishi Estate has sold its stake in a Shinjuku office tower to a J-REIT for $190 million, continuing its strategic real estate transactions.</li></ul>

Warburg Pincus and Wide Creek JV have acquired GreenFort, a Korean logistic asset, marking their second investment in the country.Gaw Capital is set to discuss a joint venture with MTD TV for the development of 1,200 homes in an upcoming interview on Wednesday.Mitsubishi Estate has sold its stake in a Shinjuku office tower to a J-REIT for $190 million, continuing its strategic real estate transactions.

Asia Real Estate Tracker (25-Mar-2025): Warburg Pincus JV acquires second Korean asset.

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

Japan Metropolitan Fund Investment Corporation / Equity Capital Markets

Japan Metropolitan Fund Investment Corporation

<ul>
<li>
<a href="https://www.smartkarma.com/entities/japan-metropolitan-fund-investment-corporation" target="_blank" data-smartkarma-citation="entities:735:1" rel="noopener">Japan Metropolitan Fund Investment Corporation (8953 JP)</a> aims to raise around US$140m to partly fund the acquisition of four assets.</li>
<li>The deal will be relatively small, in terms of ADV and dilution.</li>
<li>In this note, we will talk about the placement and run the deal through our ECM framework.</li>
</ul>



Japan Metropolitan Fund Investment Corporation (8953 JP) aims to raise around US$140m to partly fund the acquisition of four assets.
The deal will be relatively small, in terms of ADV and dilution.
In this note, we will talk about the placement and run the deal through our ECM framework.


Japan Metropolitan Fund Placement - Relatively Small Deal to Digest

Japan

TOKYU REIT, Inc. is a real estate investment trust (REIT) that directly invests in real estate properties such as office and commercial buildings in the Tokyo area.  The Company also invests in securitized real estate products.

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Tokyu Reit Inc (8957 JP)

Tokyu Corp (9005) To Lift Stake in Tokyu REIT (8957) Again - Bigger Than You Think It Is

Tokyu bought 5% of Tokyu REIT from Sep24 to March25. They have now reloaded for another 5%. Float is not that big. And the REIT is under-levered,...

Travis Lundy

Asia Real Estate Tracker (25-Mar-2025): Warburg Pincus JV acquires second Korean asset.

Warburg Pincus and Wide Creek JV acquire Korean logistic asset, Gaw Capital plans 1,200-home JV, Mitsubishi Estate sells Shinjuku office tower...

Asia Real Estate Tracker

Japan Metropolitan Fund Placement - Relatively Small Deal to Digest

Japan Metropolitan Fund Investment Corporation (8953 JP) aims to raise around US$140m to partly fund the acquisition of four assets.

Sumeet Singh

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Tokyu Corp (9005) To Lift Stake in Tokyu REIT (8957) Again - Bigger Than You Think It Is

Tokyu bought 5% of Tokyu REIT from Sep24 to March25. They have now reloaded for another 5%. Float is not that big. And the REIT is under-levered,...

Travis Lundy

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

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 (25-Mar-2025): Warburg Pincus JV acquires second Korean asset.

Warburg Pincus and Wide Creek JV acquire Korean logistic asset, Gaw Capital plans 1,200-home JV, Mitsubishi Estate sells Shinjuku office tower...

Asia Real Estate Tracker

Japan Metropolitan Fund Placement - Relatively Small Deal to Digest

Japan Metropolitan Fund Investment Corporation (8953 JP) aims to raise around US$140m to partly fund the acquisition of four assets.

Sumeet Singh