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>Ang Mo Kio 99-year private housing plot draws 15 bids while EC plot in Tengah draws seven bids</h3>
<ul>
<li>A 99-year leasehold private housing site in Ang Mo Kio Avenue 1, opposite the Bishan-Ang Mo Kio Park, has drawn 15 bids in a state tender. The highest bid of S$381.38m, or nearly S$1,118psf ppr, came from a 60:20:20 joint venture between UOL Group Ltd (UOL SP), Singapore Land Group Limited (SPLG SP) and Kheong Leong Company. This was 6.3% higher than the second highest bid of S$358.89m or S$1,052psf ppr from Titus Residential SG, a tie-up between City Developments Ltd (CIT SP) and MCL Land. Also bidding for the site was a tie-up between Far East Organisation, Sino Group and Sekisui House, which offered S$353.33m or $1,036psf ppr. UOL plans to develop a 24-25 storey project of more than 370 units that will enjoy unblocked views of the Bishan-Ang Mo Kio Park, Lower Peirce Reservoir Park and Shangri-la Park landed housing estate. It is also a timely replenishment for UOL’s land bank</li>
<li>Also closing was the tender for the maiden EC housing site in the Tengah estate. The 99-year leasehold plot in Tengah Garden Walk drew seven bids. The highest offer of S$400.3m, or S$603.17 psf ppr, was from a tie-up between CIT and MCL Land; it was just a tad higher than the nearly S$400.2m or S$602.99psf ppr from the second highest bid, from CSC Land Group. The top bid marks a record land rate for an EC site under the GLS programme. The previous high was S$583psf ppr garnered by the Sumang Walk EC site awarded in Mar18.</li>
</ul>

Singapore
Ang Mo Kio 99-year private housing plot draws 15 bids while EC plot in Tengah draws seven bids

A 99-year leasehold private housing site in Ang Mo Kio Avenue 1, opposite the Bishan-Ang Mo Kio Park, has drawn 15 bids in a state tender. The highest bid of S$381.38m, or nearly S$1,118psf ppr, came from a 60:20:20 joint venture between UOL Group Ltd (UOL SP), Singapore Land Group Limited (SPLG SP) and Kheong Leong Company. This was 6.3% higher than the second highest bid of S$358.89m or S$1,052psf ppr from Titus Residential SG, a tie-up between City Developments Ltd (CIT SP) and MCL Land. Also bidding for the site was a tie-up between Far East Organisation, Sino Group and Sekisui House, which offered S$353.33m or $1,036psf ppr. UOL plans to develop a 24-25 storey project of more than 370 units that will enjoy unblocked views of the Bishan-Ang Mo Kio Park, Lower Peirce Reservoir Park and Shangri-la Park landed housing estate. It is also a timely replenishment for UOL’s land bank
Also closing was the tender for the maiden EC housing site in the Tengah estate. The 99-year leasehold plot in Tengah Garden Walk drew seven bids. The highest offer of S$400.3m, or S$603.17 psf ppr, was from a tie-up between CIT and MCL Land; it was just a tad higher than the nearly S$400.2m or S$602.99psf ppr from the second highest bid, from CSC Land Group. The top bid marks a record land rate for an EC site under the GLS programme. The previous high was S$583psf ppr garnered by the Sumang Walk EC site awarded in Mar18.


ASEAN Builder's Scoop (27May21) - AMK Site Drew High 15bids

APAC IPOs & Placements

Zhen Zhou, Toh

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

Frasers Logistics & Commercial Trust / Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/22748" target="_blank" data-smartkarma-citation="entities:22748:1" rel="noopener">Frasers Logistics &amp; Commercial (FLT SP)</a> is raising US$231m to partially fund its acquisition of logistics and industrial properties in Germany, the Netherlands and, UK. This is the first placement that the REIT is conducting since its merger with FCOT.</p><p>We have covered the REIT's previous placement and IPO in:</p><ul style="list-style-type: disc;">
<li>
<a href="https://www.smartkarma.com/insights/frasers-logistics-placement-acquisition-executed-as-guided-with-good-track-record" target="_blank" data-smartkarma-citation="insights:31424" rel="noopener">Frasers Logistics Placement - Acquisition Executed As Guided with Good Track Record</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/frasers-logistics-placement-well-flagged-accretive-acquisition-that-diversifies-portfolio" target="_blank" data-smartkarma-citation="insights:20173" rel="noopener">Frasers Logistics Placement - Well Flagged, Accretive Acquisition that Diversifies Portfolio</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/frasers-logistics-ipo-reasonable-valuation-but-decade-low-cap-rates-remain-a-worry" target="_blank" data-smartkarma-citation="insights:4093" rel="noopener">Frasers Logistics IPO - Reasonable Valuation but Decade Low Cap Rates Remain a Worry</a> </li>
</ul>

Frasers Logistics &amp; Commercial (FLT SP) is raising US$231m to partially fund its acquisition of logistics and industrial properties in Germany, the Netherlands and, UK. This is the first placement that the REIT is conducting since its merger with FCOT.We have covered the REIT's previous placement and IPO in:

Frasers Logistics Placement - Acquisition Executed As Guided with Good Track Record 

Frasers Logistics Placement - Well Flagged, Accretive Acquisition that Diversifies Portfolio 

Frasers Logistics IPO - Reasonable Valuation but Decade Low Cap Rates Remain a Worry 


Frasers Logistics Placement - Consistent Performance, Accretive Deal

<h2>Singapore</h2><h3><a href="https://www.smartkarma.com/entities/frasers-logistics-commercial-trust" target="_blank" data-smartkarma-citation="entities:22748" rel="noopener">Frasers Logistics &amp; Commercial Trust (FLT SP)</a> to acquire six freehold properties in Germany, The Netherlands and The UK; Accretive by +1.8% to DPU</h3><ul><li>FLT has proposed an acquisition of interests in three freehold logistics and industrial properties located in Germany and a logistics and industrial property in the Netherlands, from subsidiaries of Frasers Property Limited (FPL SP); and two freehold properties, known as Connexion and Blythe Valley Park, located in the UK from subsidiaries of I.M. Properties. The acquisitions are positioned to capitalise on strong logistics industry tailwinds in The UK and Germany – the two largest e-commerce markets in Europe and among top 10 globally</li><li>The agreed property purchase price for the acquisition is approximately S$548.7m, representing a discount of ~2.5% to the aggregate appraised value of S$562.4m. The aggregate purchase consideration for the acquisition, excluding acquisition fee and other transaction costs is ~S$469.7m</li><li>As at 31Mar21, the acquisitions have a blended occupancy rate of 97.4% with a long WALB of 7.6 years, with tenants that include established third-party logistics companies and corporates, such as Hermes Germany GmbH, Gymshark Limited, Lounge Underwear Limited and BASF SE. All of the New EU Properties are 100% occupied with leases that have built-in consumer price indexation</li><li>With the acquisitions being freehold, the proportion of freehold assets in FLT’s portfolio will increase in proportion from 65.1% to 67.9% upon completion. Portfolio’s WALB will also extend from 4.4 years to 4.7 years</li><li>The estimated NPI yield is ~5%. On a 1H21 pro-forma basis, the acquisitions are expected to be both DPU and NAVPU accretive, at +1.8% and +0.9%, respectively. Funding for the acquisitions will be via a combination of proceeds from the equity fund raising (54.6%) and borrowings (remaining 45.4%). Post-acquisition, gearing would increase from 35.5% to 36.2% on pro-forma basis. The proposed acquisition is expected to be completed by Jun21.</li></ul><figure class="editor-figure mceNonEditable"><img src="https://mail.google.com/mail/u/0?ui=2&amp;ik=03e35791bb&amp;attid=0.0.3&amp;permmsgid=msg-f:1700600348485070213&amp;th=1799bf01bc5bad85&amp;view=fimg&amp;sz=s0-l75-ft&amp;attbid=ANGjdJ8xCEqA5_st0uV0EWFnw6XJqjbimQjVryOhbTImWN4xc62NjD9zqImfTW_0CazjDP53F1403yFCvywywt4e0OVlILLThfxaZmQCMoZ5GSG0nL1XYwY11V2LtGY&amp;disp=emb" width="695" height="336" class="editor-image img-responsive" data-image-whitelisted=""></figure>

SingaporeFrasers Logistics &amp; Commercial Trust (FLT SP) to acquire six freehold properties in Germany, The Netherlands and The UK; Accretive by +1.8% to DPUFLT has proposed an acquisition of interests in three freehold logistics and industrial properties located in Germany and a logistics and industrial property in the Netherlands, from subsidiaries of Frasers Property Limited (FPL SP); and two freehold properties, known as Connexion and Blythe Valley Park, located in the UK from subsidiaries of I.M. Properties. The acquisitions are positioned to capitalise on strong logistics industry tailwinds in The UK and Germany – the two largest e-commerce markets in Europe and among top 10 globallyThe agreed property purchase price for the acquisition is approximately S$548.7m, representing a discount of ~2.5% to the aggregate appraised value of S$562.4m. The aggregate purchase consideration for the acquisition, excluding acquisition fee and other transaction costs is ~S$469.7mAs at 31Mar21, the acquisitions have a blended occupancy rate of 97.4% with a long WALB of 7.6 years, with tenants that include established third-party logistics companies and corporates, such as Hermes Germany GmbH, Gymshark Limited, Lounge Underwear Limited and BASF SE. All of the New EU Properties are 100% occupied with leases that have built-in consumer price indexationWith the acquisitions being freehold, the proportion of freehold assets in FLT’s portfolio will increase in proportion from 65.1% to 67.9% upon completion. Portfolio’s WALB will also extend from 4.4 years to 4.7 yearsThe estimated NPI yield is ~5%. On a 1H21 pro-forma basis, the acquisitions are expected to be both DPU and NAVPU accretive, at +1.8% and +0.9%, respectively. Funding for the acquisitions will be via a combination of proceeds from the equity fund raising (54.6%) and borrowings (remaining 45.4%). Post-acquisition, gearing would increase from 35.5% to 36.2% on pro-forma basis. The proposed acquisition is expected to be completed by Jun21.

ASEAN Builder's Scoop (24May21) - FLT expands further into Europe

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

Equity Bottom-Up

Frasers Hospitality Trust / Equity Bottom-Up

<figure>
      <img src='https://api2.sgx.com/sites/default/files/2021-05/Capture_20.PNG' alt='Frasers Group' />
    </figure>
    <div class='content-caption'>Frasers Group</div>
<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN" "http://www.w3.org/TR/REC-html40/loose.dtd">
<html><body>
<p>FRASERS Property is one of Singapore's largest property groups with S$39.2 billion in total assets as at March 31, 2021.</p>

<p>The group develops, owns and manages an integrated portfolio of properties across residential, hospitality, retail, commercial and business parks, and in industrial and logistics sectors across Asia, Australia, Europe, the Middle East and Africa, and China.</p>

<p>With a S$4.6 billion market capitalisation, Frasers Property is the sponsor of three SGX-listed trusts - Frasers Centrepoint Trust (FCT), Frasers Logistics &amp; Commercial Trust (FLCT), and Frasers Hospitality Trust (FHT).</p>

<p>FLCT has 97 logistics, industrial and commercial properties across Australia, Singapore, Germany, the UK and the Netherlands.<br><br>
The Reit achieved a record revenue of S$231.7 million and adjusted net property income (NPI) of S$173.9 million, representing increases of 95.1 per cent and 79.3 per cent year-on-year respectively in H1FY21, mainly from the merger with Frasers Commercial Trust last April.<br><br>
It announced 3.80 cents in distribution per unit (DPU), up 9.5 per cent year-on-year, and a portfolio occupancy rate of 96.8 per cent.</p>

<p>Its majority exposure to resilient sub-sectors industrial and logistics (at 58.3 per cent of its portfolio value) amid the pandemic can be seen in the Reit's 37.8 per cent total returns in the past one year. It is the second best performing among S-Reits.</p>

<p>FLCT entered the Straits Times Index in April 2021 and has obtained a BBB+ with stable outlook credit rating from S&amp;P Global Ratings.</p>

<p>FCT is one of Singapore's largest suburban retail landlords with 10 malls with a total AUM of S$6.4 billion.</p>

<p>The Reit reported 73.8 per cent growth in both revenue and NPI for H1FY21 at S$173.6 million and S$125.7 million respectively, mainly from its latest AsiaRetail Fund portfolio. The Reit announced a DPU of 5.996 cents, 28.4 per cent higher year-on-year.</p>

<p>It noted that tenants' sales have recovered to near pre-Covid-19 levels, despite shopper traffic still lagging due to safe distancing measures. Its retail portfolio occupancy has held up at 96.1 per cent and average reversion was at -0.7 per cent.</p>

<p>FCT recently announced that the property owner of Waterway Point, of which it owns 40 per cent, has been awarded its first green loan of S$589 million, lifting FCT's proportion of green loans to 18 per cent.</p>

<p>FHT is a global hotel and serviced residence trust with 15 properties across nine cities and an appraised portfolio value of S$2.25 billion as at Sept 30, 2020.</p>

<p>In its H1FY21 results, the trust reported year-on-year declines of 36.2 per cent and 40.9 per cent in revenue and NPI respectively, as the sector continues to be affected by the pandemic.</p>

<p>However, on a half-year comparison, FHT has shown signs of improvement with 53.8 per cent and 83.5 per cent increases in revenue and NPI respectively, driven by better performance in its Australia portfolio.</p>

<p>The trust retained 60 per cent of its distributable income and reported lower distribution per stapled security of 0.179 cents.</p>

<p>FHT believes that domestic tourism may recover faster than international tourism given the pent-up demand for travel and views countries where it has a presence in such as Australia, Japan and the UK, to be best positioned for earlier recovery. <br><br><strong><em>REIT Watch is a weekly column on The Business Times,<a href="https://www.businesstimes.com.sg/companies-markets/china-poised-to-drive-economic-growth"> </a><a href="https://www.businesstimes.com.sg/companies-markets/growing-sustainably-with-frasers-s-reits">read</a><a href="https://www.businesstimes.com.sg/companies-markets/bulk-of-s-reits-in-key-global-real-estate-indices"> </a>the original version.</em></strong></p>
</body></html>



      
    
    Frasers Group


FRASERS Property is one of Singapore's largest property groups with S$39.2 billion in total assets as at March 31, 2021.

The group develops, owns and manages an integrated portfolio of properties across residential, hospitality, retail, commercial and business parks, and in industrial and logistics sectors across Asia, Australia, Europe, the Middle East and Africa, and China.

With a S$4.6 billion market capitalisation, Frasers Property is the sponsor of three SGX-listed trusts - Frasers Centrepoint Trust (FCT), Frasers Logistics &amp; Commercial Trust (FLCT), and Frasers Hospitality Trust (FHT).

FLCT has 97 logistics, industrial and commercial properties across Australia, Singapore, Germany, the UK and the Netherlands.  
The Reit achieved a record revenue of S$231.7 million and adjusted net property income (NPI) of S$173.9 million, representing increases of 95.1 per cent and 79.3 per cent year-on-year respectively in H1FY21, mainly from the merger with Frasers Commercial Trust last April.  
It announced 3.80 cents in distribution per unit (DPU), up 9.5 per cent year-on-year, and a portfolio occupancy rate of 96.8 per cent.

Its majority exposure to resilient sub-sectors industrial and logistics (at 58.3 per cent of its portfolio value) amid the pandemic can be seen in the Reit's 37.8 per cent total returns in the past one year. It is the second best performing among S-Reits.

FLCT entered the Straits Times Index in April 2021 and has obtained a BBB+ with stable outlook credit rating from S&amp;P Global Ratings.

FCT is one of Singapore's largest suburban retail landlords with 10 malls with a total AUM of S$6.4 billion.

The Reit reported 73.8 per cent growth in both revenue and NPI for H1FY21 at S$173.6 million and S$125.7 million respectively, mainly from its latest AsiaRetail Fund portfolio. The Reit announced a DPU of 5.996 cents, 28.4 per cent higher year-on-year.

It noted that tenants' sales have recovered to near pre-Covid-19 levels, despite shopper traffic still lagging due to safe distancing measures. Its retail portfolio occupancy has held up at 96.1 per cent and average reversion was at -0.7 per cent.

FCT recently announced that the property owner of Waterway Point, of which it owns 40 per cent, has been awarded its first green loan of S$589 million, lifting FCT's proportion of green loans to 18 per cent.

FHT is a global hotel and serviced residence trust with 15 properties across nine cities and an appraised portfolio value of S$2.25 billion as at Sept 30, 2020.

In its H1FY21 results, the trust reported year-on-year declines of 36.2 per cent and 40.9 per cent in revenue and NPI respectively, as the sector continues to be affected by the pandemic.

However, on a half-year comparison, FHT has shown signs of improvement with 53.8 per cent and 83.5 per cent increases in revenue and NPI respectively, driven by better performance in its Australia portfolio.

The trust retained 60 per cent of its distributable income and reported lower distribution per stapled security of 0.179 cents.

FHT believes that domestic tourism may recover faster than international tourism given the pent-up demand for travel and views countries where it has a presence in such as Australia, Japan and the UK, to be best positioned for earlier recovery.   REIT Watch is a weekly column on The Business Times, read the original version.



REIT Watch - Growing sustainably with Frasers' S-Reits

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

<div><p>SF Real Estate Investment Trust (SFREIT), a logistics-focused REIT, raised around US$333m in its Hong Kong IPO. SF REIT is sponsored by SF Holdings, listed in Shenzhen.</p></div><div><p>We have looked at the background of the deal in our previous notes,<a href="https://www.smartkarma.com/insights/sf-reit-pre-ipo-one-trick-pony-who-s-not-doing-the-trick" target="_blank" rel="noopener"> SF REIT Pre-IPO -One trick pony, who’s not doing the trick</a> and <a href="https://www.smartkarma.com/insights/sf-reit-ipo-don-t-see-a-clear-reason-to-buy" target="_blank" rel="noopener">SF REIT IPO - Don’t See a Clear Reason to Buy</a>.</p></div><div><p>In this note, we’ll talk about the trading dyanmics.</p></div>

SF Real Estate Investment Trust (SFREIT), a logistics-focused REIT, raised around US$333m in its Hong Kong IPO. SF REIT is sponsored by SF Holdings, listed in Shenzhen.We have looked at the background of the deal in our previous notes, SF REIT Pre-IPO -One trick pony, who’s not doing the trick and SF REIT IPO - Don’t See a Clear Reason to Buy.In this note, we’ll talk about the trading dyanmics.

Singapore

FLT offers investors an opportunity to invest in logistics and industrial real estate assets strategically located within major logistics and industrial markets of Australia, Germany and the Netherlands.

Frasers Logistics & Commercial Trust (FLT SP)

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Frasers Logistics & Commercial Trust (FLT SP)

ASEAN Builder's Scoop (27May21) - AMK Site Drew High 15bids

AMK site drew high 15bids, UOL winner; CAPL rises stake in DLSP; Frasers Hosp expands in China; GLP eyes US$2bn HK IPO; METRO sees decentralized...

SCCM Asia Research

Frasers Logistics Placement - Consistent Performance, Accretive Deal

Frasers Logistics & Commercial (FLT SP) is raising US$231m to partially fund its acquisition of logistics and industrial properties in Germany, the...

Zhen Zhou, Toh

ASEAN Builder's Scoop (24May21) - FLT expands further into Europe

FLT expands further into Europe; SASSR appoints new CEO; Jem/Westgate to close for 2wks; RLC Chengdu project saves the day; Luxury penthouse demand...

SCCM Asia Research

REIT Watch - Growing sustainably with Frasers' S-Reits

FRASERS Property is one of Singapore's largest property groups with S$39.2 billion in total assets as at March 31, 2021. The...

Singapore Exchange Ltd (SGX)

SF REIT IPO Trading - Tepid Demand

SF Real Estate Investment Trust (SFREIT), a logistics-focused REIT, raised around US$333m in its Hong Kong IPO. SF REIT is sponsored by SF...

Sumeet Singh

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)