Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<p>After both stocks were <a href="https://links.sgx.com/1.0.0/corporate-announcements/XTI20B3KY4OSBZBJ/f3a6ce3c341157d052a4e2fec78421e8ed41fd559495f9c69a61b82629d0807e" target="_blank" rel="noopener">suspended</a> the morning of the 28 November, <a href="https://www.smartkarma.com/entities/frasers-logistics-industrial" target="_blank" data-smartkarma-citation="entities:22748:1" rel="noopener">Frasers Logistics &amp; Industrial (FLT SP)</a> and <a href="https://www.smartkarma.com/entities/frasers-commercial-trust" target="_blank" data-smartkarma-citation="entities:13879:1" rel="noopener">Frasers Commercial Trust (FCOT SP)</a> have now <a href="https://links.sgx.com/FileOpen/Joint%20Announcement.ashx?App=Announcement&amp;FileID=589008" target="_blank" rel="noopener">announced a merger</a> by way of a Scheme, with FLT the surviving entity.</p>
<p>The Scheme Consideration is broken down as to S$0.151/cash and 1.233 new FLT units at S$1.24/FLT unit - for a total consideration of S$1.68/unit, a 0.6% premium to last close and 3.1% premium to FCOT's NAV.</p>
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<p>This would create a REIT with S$6.8bn of assets and a pro-forma market cap of ~S$4.2bn (the 9th largest REIT in Singapore) with a free-float of S$3bn. </p>
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<p>Investor benefits include increased scale and diversification (98 properties across five countries, with 2.6mn sqm of space under management) along with enlarged funding capacity, and the deal will be both DPU- and NAV-accretive for FLT and FCOT unitholders. There is also the potential for a higher weighting in the FTSE EPRA/NAREIT Index with the addition of FCOT's float.</p>
<p>Following the completion of the merger, Frasers Property Group, backed by Thailand’s TCC Group, will hold 21.9% in the enlarged REIT. </p>
<p>This is the fourth REIT merger in Singapore in 2019, following Ascendas/Singbridge, <a href="https://www.smartkarma.com/entities/912" target="_blank" data-smartkarma-citation="entities:912:1" rel="noopener">OUE Commercial Real Estate Investment Tr (OUECT SP)</a> / <a href="https://www.smartkarma.com/entities/5642" target="_blank" data-smartkarma-citation="entities:5642:1" rel="noopener">OUE Hospitality Trust (OUEHT SP)</a> and <a href="https://www.smartkarma.com/entities/ascott-residence-trust" target="_blank" data-smartkarma-citation="entities:6560:1" rel="noopener">Ascott Residence Trust (ART SP)</a> / <a href="https://www.smartkarma.com/entities/ascendas-hospitality-trust" target="_blank" data-smartkarma-citation="entities:934:1" rel="noopener">Ascendas Hospitality Trust (ASCHT SP)</a>.</p>
<p>As always, more details below the fold.</p>
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After both stocks were suspended the morning of the 28 November, Frasers Logistics &amp; Industrial (FLT SP) and Frasers Commercial Trust (FCOT SP) have now announced a merger by way of a Scheme, with FLT the surviving entity.
The Scheme Consideration is broken down as to S$0.151/cash and 1.233 new FLT units at S$1.24/FLT unit - for a total consideration of S$1.68/unit, a 0.6% premium to last close and 3.1% premium to FCOT's NAV.

This would create a REIT with S$6.8bn of assets and a pro-forma market cap of ~S$4.2bn (the 9th largest REIT in Singapore) with a free-float of S$3bn. 


Investor benefits include increased scale and diversification (98 properties across five countries, with 2.6mn sqm of space under management) along with enlarged funding capacity, and the deal will be both DPU- and NAV-accretive for FLT and FCOT unitholders. There is also the potential for a higher weighting in the FTSE EPRA/NAREIT Index with the addition of FCOT's float.
Following the completion of the merger, Frasers Property Group, backed by Thailand’s TCC Group, will hold 21.9% in the enlarged REIT. 
This is the fourth REIT merger in Singapore in 2019, following Ascendas/Singbridge, OUE Commercial Real Estate Investment Tr (OUECT SP) / OUE Hospitality Trust (OUEHT SP) and Ascott Residence Trust (ART SP) / Ascendas Hospitality Trust (ASCHT SP).
As always, more details below the fold.





FLT/FCOT: (Another) Larger NEWREIT in Singapore

Deciphering real estate markets globally., Rems Advisors

TAN Kok Keong

Deciphering real estate markets globally.

Rems Advisors

Thematic (Sector/Industry)

<p>We visited Forest City in Iskandar Malaysia over the weekend following reports of the Chinese government's order for <a href="https://www.smartkarma.com/entities/5225" target="_blank" data-smartkarma-citation="entities:5225:1">Country Garden Holdings Co (2007 HK)</a> to close all its showrooms in China.  The following are some observations from us, post-visit. </p><h2>Key observations from the visit</h2><p>The following are our key observations and feedback from agents/visitors we spoke to: </p><ul><li>
<strong>The number of visitors shrank: </strong>The sale agent we met told us that the news of closing down of all showrooms in China really hurt their…</li></ul>

We visited Forest City in Iskandar Malaysia over the weekend following reports of the Chinese government's order for Country Garden Holdings Co (2007 HK) to close all its showrooms in China.  The following are some observations from us, post-visit. Key observations from the visitThe following are our key observations and feedback from agents/visitors we spoke to: 
The number of visitors shrank: The sale agent we met told us that the news of closing down of all showrooms in China really hurt their…

Seeing the Forest for the Trees in Malaysia - Country Garden

Malaysia

YTL Hospitality REIT invests in real estate and real estate related assets. The Company focuses its real estate portfolio on hotel and hospitality related properties in Malaysia, Japan, and Australia.

YTL Hospitality REIT (YTLREIT MK)

FLT/FCOT: (Another) Larger NEWREIT in Singapore

After both stocks were suspended the morning of the 28 November, Frasers Logistics & Industrial (FLT SP) and Frasers Commercial Trust (FCOT SP)...

David Blennerhassett

Seeing the Forest for the Trees in Malaysia - Country Garden

We visited Forest City in Iskandar Malaysia over the weekend following reports of the Chinese government's order for Country Garden Holdings Co...

TAN Kok Keong