External broker reports(aggregated public sources), Hong Leong Investment Bank Berhad

Hong Leong Investment Bank Berhad

External broker reports(aggregated public sources)

Hong Leong Investment Bank Berhad operates as an investment banking company. The Company provides debt and equity funding, private debt securities issuance, merger and acquisitions, initial public offerings, corporate restructuring, and stockbroking services. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Equity Bottom-Up

<ul><li>UEMS had on 21 June 2023 entered into two agreements with Greystar, a US based real estate developer and manager.</li><li>The two agreements involved a land sale agreement and a fund-through agreement for the group’s Melbourne land.</li><li>Collectively, the total payment expected to be received from the two agreements are AUD277.3m (or RM873.7m).</li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

UEMS had on 21 June 2023 entered into two agreements with Greystar, a US based real estate developer and manager.The two agreements involved a land sale agreement and a fund-through agreement for the group’s Melbourne land.Collectively, the total payment expected to be received from the two agreements are AUD277.3m (or RM873.7m).Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

UEM Sunrise - UEMS Partners Greystar for Australia Project

Research from SooChow CSSD Capital Markets (Asia), SCCM Asia Research

SCCM Asia Research

Research from SooChow CSSD Capital Markets (Asia)

Thematic (Sector/Industry)

<h2>Singapore</h2><h3><a href="https://www.smartkarma.com/entities/ascendas-india-trust" target="_blank" data-smartkarma-citation="entities:935" rel="noopener">Ascendas India Trust (AIT SP)</a> to develop its first Data Centre campus in Navi Mumbai</h3><ul><li>AIT will invest ~INR12bn (~S$216.6m) to develop and operate phase one of its first data centre campus on a prime site in India. It will be one of the largest data centre campuses in Airoli, a growing data centre hub in Navi Mumbai. The 6.6acre greenfield site will be developed in phases into a fully-fitted data centre campus with a total potential built-up area of up to 575,000sqft and 90MW of power to host customers such as global technology giants and cloud service providers, as well as large domestic enterprise clients</li><li>The total costs of the acquisition including purchase consideration will be financed through a combination of debt and internal resources. The acquisition of the site from third-party vendors is expected to be completed by 3Q21. The data centre campus will comprise two buildings. In phase one, the first building, which is scheduled to be ready by 2Q24, will have a built-up area of about 325,000sqft</li><li>The data centre campus site is situated in a prime location along Thane-Belapur Road, easily accessible from Mumbai city via the Eastern Express Highway. Navi Mumbai has emerged as a preferred data centre location since it offers proximity to sea cable landing stations, larger land parcels with clear title, abundant and scalable power, developed infrastructure and seamless vendor neutral network connectivity</li><li>When fully developed, the data centre campus will have an overall capacity to host ~8,500 racks and operate at an efficient power usage effectiveness of ~1.4. Post-acquisition and completion of the phase one, AIT’s portfolio size (including pipeline projects) will increase by 1.2% from ~24.9m sqft to 25.2m sqft.</li></ul>

SingaporeAscendas India Trust (AIT SP) to develop its first Data Centre campus in Navi MumbaiAIT will invest ~INR12bn (~S$216.6m) to develop and operate phase one of its first data centre campus on a prime site in India. It will be one of the largest data centre campuses in Airoli, a growing data centre hub in Navi Mumbai. The 6.6acre greenfield site will be developed in phases into a fully-fitted data centre campus with a total potential built-up area of up to 575,000sqft and 90MW of power to host customers such as global technology giants and cloud service providers, as well as large domestic enterprise clientsThe total costs of the acquisition including purchase consideration will be financed through a combination of debt and internal resources. The acquisition of the site from third-party vendors is expected to be completed by 3Q21. The data centre campus will comprise two buildings. In phase one, the first building, which is scheduled to be ready by 2Q24, will have a built-up area of about 325,000sqftThe data centre campus site is situated in a prime location along Thane-Belapur Road, easily accessible from Mumbai city via the Eastern Express Highway. Navi Mumbai has emerged as a preferred data centre location since it offers proximity to sea cable landing stations, larger land parcels with clear title, abundant and scalable power, developed infrastructure and seamless vendor neutral network connectivityWhen fully developed, the data centre campus will have an overall capacity to host ~8,500 racks and operate at an efficient power usage effectiveness of ~1.4. Post-acquisition and completion of the phase one, AIT’s portfolio size (including pipeline projects) will increase by 1.2% from ~24.9m sqft to 25.2m sqft.

ASEAN Builder's Scoop (5Jul21) - AIT Builds Its First DC in Navi Mumbai

<h2>Singapore</h2><h3><a href="https://www.smartkarma.com/entities/low-keng-huat-singapore-ltd" target="_blank" data-smartkarma-citation="entities:1928" rel="noopener">Low Keng Huat Singapore (LKH SP)</a> to sell Westgate Tower 40% stake; Buy 45% of Paya Lebar Square in a shift move to retail from office</h3><ul><li>LKH has entered agreements to sell its interests in Westgate Tower for S$97.1m, while buying the remaining 45% of Paya Lebar Square that it does not already own for S$90.5m. LKH hopes to focus on retail instead of commercial office developments as it has more experience in managing the former. The buyer of the Westgate Tower stake and seller of the Paya Lebar Square shares are Sun Venture Homes (SVH) and Sun Venture Realty (SVR), respectively. They are the joint venture partners of LKH in both properties.  LKH's interests in Westgate Tower to be sold comprise a 40% stake in each of Westgate Tower (WTPL) and Westgate Commercial (WCPL). Both entities collectively own 295 office units in Westgate Tower, a commercial office development at 1 Gateway Drive</li><li>The sale price for the Westgate Tower interests represents an excess of S$14.33m over the net book value of the relevant sale shares. It also includes shareholders' loans of an aggregate amount of S$80.5m owing to LKH. For FY21, the net loss attributable to WTPL and WCPL were S$2.6m and S$3.2m, respectively. LKH said that there is a S$8.11m gain on disposal with WTPL and a S$6.23m gain on disposal with WCPL. In the other transaction, LKH will acquire shares of Paya Lebar Square (PLSPL), which owns the Paya Lebar Square commercial office and retail development at 60 Paya Lebar Road, with 159 retail units and one office unit. LKH already owns 55% of PLSPL. The S$90.5m purchase price for the PLSPL stake includes a shareholder's loan of S$47.6m owing to SVR.</li></ul>

SingaporeLow Keng Huat Singapore (LKH SP) to sell Westgate Tower 40% stake; Buy 45% of Paya Lebar Square in a shift move to retail from officeLKH has entered agreements to sell its interests in Westgate Tower for S$97.1m, while buying the remaining 45% of Paya Lebar Square that it does not already own for S$90.5m. LKH hopes to focus on retail instead of commercial office developments as it has more experience in managing the former. The buyer of the Westgate Tower stake and seller of the Paya Lebar Square shares are Sun Venture Homes (SVH) and Sun Venture Realty (SVR), respectively. They are the joint venture partners of LKH in both properties.  LKH's interests in Westgate Tower to be sold comprise a 40% stake in each of Westgate Tower (WTPL) and Westgate Commercial (WCPL). Both entities collectively own 295 office units in Westgate Tower, a commercial office development at 1 Gateway DriveThe sale price for the Westgate Tower interests represents an excess of S$14.33m over the net book value of the relevant sale shares. It also includes shareholders' loans of an aggregate amount of S$80.5m owing to LKH. For FY21, the net loss attributable to WTPL and WCPL were S$2.6m and S$3.2m, respectively. LKH said that there is a S$8.11m gain on disposal with WTPL and a S$6.23m gain on disposal with WCPL. In the other transaction, LKH will acquire shares of Paya Lebar Square (PLSPL), which owns the Paya Lebar Square commercial office and retail development at 60 Paya Lebar Road, with 159 retail units and one office unit. LKH already owns 55% of PLSPL. The S$90.5m purchase price for the PLSPL stake includes a shareholder's loan of S$47.6m owing to SVR.

ASEAN Builder's Scoop (14Jun21) - LKH Sells Westgate Tower Stake

<h2>Singapore</h2><h3><a href="https://www.smartkarma.com/entities/lendlease-global-commercial-reit" target="_blank" data-smartkarma-citation="entities:28292" rel="noopener">Lendlease Global Commercial REIT (LREIT SP)</a> to increase stake in JEM mall; DPU accretive to be funded by debt and perps</h3><ul><li>LREIT has entered into sale and purchase agreements to increase its stake in Jem. Upon completion of the proposed acquisition, LREIT will hold an effective indirect interest of up to 31.8% interest in JEM. The proposed acquisition includes 1) an acquisition of a 53.0% interest in Lendlease Jem Partners Fund Limited (LLJP) from third party vendors for S$159.1m; and 2) an acquisition of a 5.0% interest in Lendlease Asian Retail Investment Fund 3 Limited (ARIF3) from Lendlease International Pty Limited for S$45.0m. LREIT may also acquire up to 19.8% interest in ARIF3 from other third-party investors for S$178.2m. LLJP/ARIF3 holds a 25%/75% indirect interest, respectively, in JEM mall</li><li>As of 31Mar21, JEM was independently valued at S$2,085m and S$2,061m by JLL and CBRE, respectively. It sits on a 99yr lease land site with total NLA of 892,148sqft and 99.7% occupied. The proposed transaction values JEM at S$2,077m (S$2,238psf on NLA – 4.5% retail cap rate, 3.5% office cap rate) – NPI yield of 3.9%</li><li>Following the acquisition, the enlarged portfolio size of S$1.8bn will have a diversified asset base and an increased exposure to more resilient suburban retail and decentralised office segments. The single largest asset by aggregate value of the enlarged portfolio would also decrease from 67.6% to 55.1% (WALE of 6.5 years by GRI)</li><li>On a 1H21 pro-forma basis, the acquisitions are expected to be DPU accretive to unitholders, with an accretive change of +3.0% (assuming 19.8% of ARIF3 is acquired) and +1.3% if only 5% of ARIF3 is acquired. On the other hand, NAV per unit (31Dec20 pro-forma) will slightly decline to S$0.84 and gearing will improve to 34.1% after the acquisition of 19.8% stake in ARIF3. NAV per unit will remain flat at S$0.85 if only 5% of ARIF3 is acquired and gearing will improve to 32.4%</li><li>LREIT will leverage its strong balance sheet to fund this acquisition through debt or a combination of debt and proceeds from the issuance of perpetual securities. The acquisition, which is conditional upon LREIT unitholders’ approval, is expected to complete by 30Sep21. <section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/211/591/original/image003.png?1623030785" class="editor-image img-responsive" data-smartkarma-image-id="211591"></figure></section></li></ul>

SingaporeLendlease Global Commercial REIT (LREIT SP) to increase stake in JEM mall; DPU accretive to be funded by debt and perpsLREIT has entered into sale and purchase agreements to increase its stake in Jem. Upon completion of the proposed acquisition, LREIT will hold an effective indirect interest of up to 31.8% interest in JEM. The proposed acquisition includes 1) an acquisition of a 53.0% interest in Lendlease Jem Partners Fund Limited (LLJP) from third party vendors for S$159.1m; and 2) an acquisition of a 5.0% interest in Lendlease Asian Retail Investment Fund 3 Limited (ARIF3) from Lendlease International Pty Limited for S$45.0m. LREIT may also acquire up to 19.8% interest in ARIF3 from other third-party investors for S$178.2m. LLJP/ARIF3 holds a 25%/75% indirect interest, respectively, in JEM mallAs of 31Mar21, JEM was independently valued at S$2,085m and S$2,061m by JLL and CBRE, respectively. It sits on a 99yr lease land site with total NLA of 892,148sqft and 99.7% occupied. The proposed transaction values JEM at S$2,077m (S$2,238psf on NLA – 4.5% retail cap rate, 3.5% office cap rate) – NPI yield of 3.9%Following the acquisition, the enlarged portfolio size of S$1.8bn will have a diversified asset base and an increased exposure to more resilient suburban retail and decentralised office segments. The single largest asset by aggregate value of the enlarged portfolio would also decrease from 67.6% to 55.1% (WALE of 6.5 years by GRI)On a 1H21 pro-forma basis, the acquisitions are expected to be DPU accretive to unitholders, with an accretive change of +3.0% (assuming 19.8% of ARIF3 is acquired) and +1.3% if only 5% of ARIF3 is acquired. On the other hand, NAV per unit (31Dec20 pro-forma) will slightly decline to S$0.84 and gearing will improve to 34.1% after the acquisition of 19.8% stake in ARIF3. NAV per unit will remain flat at S$0.85 if only 5% of ARIF3 is acquired and gearing will improve to 32.4%LREIT will leverage its strong balance sheet to fund this acquisition through debt or a combination of debt and proceeds from the issuance of perpetual securities. The acquisition, which is conditional upon LREIT unitholders’ approval, is expected to complete by 30Sep21. 

ASEAN Builder's Scoop (7Jun21) - LREIT Increases Stake in JEM Mall

<h2>Singapore</h2>
<h3>
<a href="https://www.smartkarma.com/entities/eagle-hospitality-trust" target="_blank" data-smartkarma-citation="entities:28059" rel="noopener">Eagle Hospitality Trust (EAGLEHT SP)</a> five properties put on auction received qualified bids</h3>
<p>Five out of 15 properties put up for auction have received qualified bids in the second bid round for EAGLEHT Chapter 11 assets held on 20May. The DBS trustee said its Chapter 11 entities received qualified bids for Sheraton Denver Tech Center, Four Points by Sheraton San Jose Airport, Embassy Suites by Hilton Anaheim North, Doubletree by Hilton Salt Lake City Airport, and Hilton Atlanta Northeast. The auction resulted in a US$24.8m net increase in the aggregate consideration for EAGLEHT's auctioned properties. A stalking-horse bidder, Madison Phoenix LLC, an affiliate of Monarch Alternative Capital, emerged successful for its bid of nine non-auctioned properties with an aggregate purchase price of US$326.5m. This is in accordance with the terms of the stalking-horse agreement between entities of EAGLEHT and the bidder, which effectively sets an opening price or price floor to protect the company selling the assets at low bids. Properties remaining in EAGLEHT's portfolio upon approval of the sale would comprise Queen Mary Long Beach, Delta Woodbridge, Hilton Houston Galleria Area and Crowne Plaza Dallas Near Galleria-Addison.</p>

Singapore

Eagle Hospitality Trust (EAGLEHT SP) five properties put on auction received qualified bids
Five out of 15 properties put up for auction have received qualified bids in the second bid round for EAGLEHT Chapter 11 assets held on 20May. The DBS trustee said its Chapter 11 entities received qualified bids for Sheraton Denver Tech Center, Four Points by Sheraton San Jose Airport, Embassy Suites by Hilton Anaheim North, Doubletree by Hilton Salt Lake City Airport, and Hilton Atlanta Northeast. The auction resulted in a US$24.8m net increase in the aggregate consideration for EAGLEHT's auctioned properties. A stalking-horse bidder, Madison Phoenix LLC, an affiliate of Monarch Alternative Capital, emerged successful for its bid of nine non-auctioned properties with an aggregate purchase price of US$326.5m. This is in accordance with the terms of the stalking-horse agreement between entities of EAGLEHT and the bidder, which effectively sets an opening price or price floor to protect the company selling the assets at low bids. Properties remaining in EAGLEHT's portfolio upon approval of the sale would comprise Queen Mary Long Beach, Delta Woodbridge, Hilton Houston Galleria Area and Crowne Plaza Dallas Near Galleria-Addison.

ASEAN Builder's Scoop (25May21) - EAGLEHT Properties Received Qualified Bids

Malaysia

UEM Sunrise Bhd is a real estate investment and development company. The Company's activities include property development and land sales. The Company develops a range of projects including industrial, commercial, residential, healthcare and mixed used properties, government offices, universities, and others.

Uem Sunrise Bhd (UEMS MK)

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