Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

HK Type 4 license through Ballingal Investment Advisors Ltd. 

I'm a highly experienced sell-side analyst with in excess of 22 years of covering Asia Pacific equities, the past 19 years immersed in event strategies encompassing M&A risk arbitrage, directional long/short, stub trades and restructuring.  

My background also includes accountancy (liquidation/bankruptcy/receivership) earlier in my career and as a chief financial officer of a global commodity company based in the US and Mexico.

Pan-Asia Catalysts/Events

Negative IFA Opinion Compromises PAG's Offer For Spring REIT

Quiddity Advisors

Event-Driven

<a href="https://www.smartkarma.com/entities/19888" target="_blank" data-smartkarma-citation="entities:19888:1">Spring Real Estate Investment Trust (1426 HK)</a> was <a href="http://www.hkexnews.hk/listedco/listconews/SEHK/2013/1125/LTN20131125013.pdf" target="_blank">listed in December 2013</a> with a property portfolio comprising office towers 1 and 2 in Beijing's China Central Place, with 120,245 sqm of office space and around 600 car parking spaces.
On the 14 July 2017, Spring completed the acquisition of "84 separate commercial properties" in the UK. This was Spring's first acquisition since listing. These properties are auto repair shops and Spring stated the acquisition was consistent with its investment objectives and strategy. 
PAG Real Estate, a then 12.5% unitholders in Spring, disagreed with that rationale and on the <a href="http://www.hkexnews.hk/listedco/listconews/SEHK/2017/0830/LTN20170830923.pdf" target="_blank">29 August 2017</a> called for an EGM to remove Spring Asset Management Limited, Spring's Manager. Spring's substantial discount to NAV (then 43.6%) and underperformance since IPO were also cited as motives to remove the Manager. 
<a href="https://www.smartkarma.com/entities/26104" target="_blank" data-smartkarma-citation="entities:26104:1">Mercuria Investment (7190 JP)</a> owns 90.2% of Spring's Manager. Unitholders <a href="http://www.hkexnews.hk/listedco/listconews/SEHK/2017/1110/LTN20171110788.pdf" target="_blank">voted to keep the Manager</a>.  
The New News
On the 19 September, Spring <a href="http://www.hkexnews.hk/listedco/listconews/SEHK/2018/0919/LTN201809191050.pdf" target="_blank">announced the proposed acquisition of retail assets</a> (a shopping mall) in Huizhou for RMB1.65bn (an 18.5% discount to the appraised value) primarily funded via the issuance of new units (18.8% of units out, 15.8% on a diluted basis) to the seller, Huamao, at an issue price of HK$3.372/unit.  Spring's share price declined 7% over the following 3 trading sessions. 
The New New News
Today, PAG <a href="http://www.hkexnews.hk/listedco/listconews/SEHK/2018/0926/LTN20180926219.PDF" target="_blank">announced a voluntary conditional general offer at $4.85/unit</a>, a 61.7% premium to the prior day's close, a 47% premium to the 3-month average, a 27.3% premium to the IPO price of $3.81/unit, and an all-time high price for the stock.

Spring Real Estate Investment Trust (1426 HK) was listed in December 2013 with a property portfolio comprising office towers 1 and 2 in Beijing's China Central Place, with 120,245 sqm of office space and around 600 car parking spaces.
On the 14 July 2017, Spring completed the acquisition of "84 separate commercial properties" in the UK. This was Spring's first acquisition since listing. These properties are auto repair shops and Spring stated the acquisition was consistent with its investment objectives and strategy. 
PAG Real Estate, a then 12.5% unitholders in Spring, disagreed with that rationale and on the 29 August 2017 called for an EGM to remove Spring Asset Management Limited, Spring's Manager. Spring's substantial discount to NAV (then 43.6%) and underperformance since IPO were also cited as motives to remove the Manager. 
Mercuria Investment (7190 JP) owns 90.2% of Spring's Manager. Unitholders voted to keep the Manager.  
The New News
On the 19 September, Spring announced the proposed acquisition of retail assets (a shopping mall) in Huizhou for RMB1.65bn (an 18.5% discount to the appraised value) primarily funded via the issuance of new units (18.8% of units out, 15.8% on a diluted basis) to the seller, Huamao, at an issue price of HK$3.372/unit.  Spring's share price declined 7% over the following 3 trading sessions. 
The New New News
Today, PAG announced a voluntary conditional general offer at $4.85/unit, a 61.7% premium to the prior day's close, a 47% premium to the 3-month average, a 27.3% premium to the IPO price of $3.81/unit, and an all-time high price for the stock.

Mapletree Pan Asia Commercial Trust (MCT SP)

Yuexiu Real Estate Investment Trust (405 HK)

Spring REIT

Spring REIT And The Final Straw For PAG