Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Last Week in Event SPACE: Capitaland, Languang Justbon, Fast Retailing, Crown Resorts, Adani Power

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.

<p>On 22nd Mar 2021, <a href="https://www.smartkarma.com/entities/capitaland-ltd" target="_blank" data-smartkarma-citation="entities:55:1" rel="noopener">Capitaland (CAPL SP)</a> announced a strategic restructuring of CAPL and listing of CapitaLand Investment Management.</p><p>Having looked at the company in a prior life as a Singapore Real Estate Analyst, I'll share my thoughts on the likely impact of the deal.</p>

On 22nd Mar 2021, Capitaland (CAPL SP) announced a strategic restructuring of CAPL and listing of CapitaLand Investment Management.Having looked at the company in a prior life as a Singapore Real Estate Analyst, I'll share my thoughts on the likely impact of the deal.

CapitaLand Restructuring - CLIM Should Have Been a Pure Fee Business

Travis Lundy

<p>In January 2019, <a href="https://www.smartkarma.com/entities/capitaland-ltd" target="_blank" data-smartkarma-citation="entities:55:1" rel="noopener">Capitaland (CAPL SP)</a> and Ascendas-Singbridge <a href="https://investor.capitaland.com/newsroom/20190114_080328_C31_NG341OU6TBGTR31P.1.pdf" target="_blank" rel="noopener">announced</a> a deal for Capitaland to purchase Ascendas-Singbridge in a 50/50 cash/scrip deal, and recently-promoted CEO Mr. Lee Choo Koon and his executive team put forth the idea of Capitaland 3.0, which among other things meant "Creating Asia's Largest Diversified Real Estate Group."</p><p>The plan was...</p><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/196/145/original/Screenshot+2021-03-22+at+11.44.22+AM.png?1616384726" class="editor-image img-responsive" data-smartkarma-image-id="196145"></figure></section><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/196/146/original/Screenshot+2021-03-22+at+11.44.36+AM.png?1616384736" class="editor-image img-responsive" data-smartkarma-image-id="196146"></figure></section><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/196/147/original/Screenshot+2021-03-22+at+11.45.06+AM.png?1616384749" class="editor-image img-responsive" data-smartkarma-image-id="196147"></figure></section><p></p><p>It got to that position, but two years later (one of those years admittedly with covid-19), in an announcement of a NEW deal, the proposed real estate investment manager has dropped down to 12th largest real estate investment manager. </p><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/196/148/original/Screenshot+2021-03-22+at+12.03.41+PM.png?1616385866" class="editor-image img-responsive" data-smartkarma-image-id="196148"></figure></section><hr><h2>The NEW News</h2><p>Today, after seeing all the Capitaland names halted early, Capitaland has <a href="https://links.sgx.com/FileOpen/20210322_CL_Announcement%20Presentation_Restructuring.ashx?App=Announcement&amp;FileID=652735" target="_blank" rel="noopener">announced</a> a restructuring whereby Capitaland will split itself into three pillars - Fund Management, Lodging, and Development. </p><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/196/149/original/Screenshot+2021-03-22+at+12.07.03+PM.png?1616386071" class="editor-image img-responsive" data-smartkarma-image-id="196149"></figure></section><p>If this deal gets approved, Capitaland shareholders will receive cash, shares in <a href="https://www.smartkarma.com/entities/capitaland-integrated-commercial-trust" target="_blank" data-smartkarma-citation="entities:105:1" rel="noopener">Capitaland Integrated Commercial Trust (CICT SP)</a>, and shares in a newly-listed Capitaland Investment Management spun out of Capitaland. </p><div class="content-highlight"><p>The question investors will need to ask themselves is whether this is a good thing for them.  </p></div>

In January 2019, Capitaland (CAPL SP) and Ascendas-Singbridge announced a deal for Capitaland to purchase Ascendas-Singbridge in a 50/50 cash/scrip deal, and recently-promoted CEO Mr. Lee Choo Koon and his executive team put forth the idea of Capitaland 3.0, which among other things meant "Creating Asia's Largest Diversified Real Estate Group."The plan was...It got to that position, but two years later (one of those years admittedly with covid-19), in an announcement of a NEW deal, the proposed real estate investment manager has dropped down to 12th largest real estate investment manager. The NEW NewsToday, after seeing all the Capitaland names halted early, Capitaland has announced a restructuring whereby Capitaland will split itself into three pillars - Fund Management, Lodging, and Development. If this deal gets approved, Capitaland shareholders will receive cash, shares in Capitaland Integrated Commercial Trust (CICT SP), and shares in a newly-listed Capitaland Investment Management spun out of Capitaland. The question investors will need to ask themselves is whether this is a good thing for them.  

Capitaland (CAPL SP) Restructuring Is Big But Still Vague. Lots of Fine Print to Read.

Equity Capital Markets

<p>DDMP REIT (DDMPR), a subsidiary of DoubleDragon Properties Corp (DDP), aims to raise up to US$300 in its Philippines listing.</p>
<p>DDMPR will be the second REIT listing in the Philippines. DDMPR’s investment strategy is to invest in income-generating real estate located in either Metro Manila or key provinces in the Philippines. It aims to acquire primarily Grade A commercial properties, but may acquire other related real estate as well.</p>
<p>It will have an initial portfolio of three commercial buildings, with six office towers, located in DD Meridian Park. It also owns the land for two other under construction assets, which have been leased to DDP. Together the assets will have a gross leasable area (GLA) of 172,252sqm. As of Sep 2020, the portfolio had an occupancy of 99.5% and weighted average lease expiry for the office leases of 4.2years.</p>
<p>Its assets are relatively new, with all having been completed over 2017-19. The assets have long term leases and step-up rental escalation, which should provide rental stability. </p>
<p>However, the assets aren’t located in prime CBD and the particular area appears to have a fair amount of incoming office supply over the next few years.</p>

DDMP REIT (DDMPR), a subsidiary of DoubleDragon Properties Corp (DDP), aims to raise up to US$300 in its Philippines listing.
DDMPR will be the second REIT listing in the Philippines. DDMPR’s investment strategy is to invest in income-generating real estate located in either Metro Manila or key provinces in the Philippines. It aims to acquire primarily Grade A commercial properties, but may acquire other related real estate as well.
It will have an initial portfolio of three commercial buildings, with six office towers, located in DD Meridian Park. It also owns the land for two other under construction assets, which have been leased to DDP. Together the assets will have a gross leasable area (GLA) of 172,252sqm. As of Sep 2020, the portfolio had an occupancy of 99.5% and weighted average lease expiry for the office leases of 4.2years.
Its assets are relatively new, with all having been completed over 2017-19. The assets have long term leases and step-up rental escalation, which should provide rental stability. 
However, the assets aren’t located in prime CBD and the particular area appears to have a fair amount of incoming office supply over the next few years.

DDMP REIT Pre-IPO - Brand New Assets but Not with the Best of Outlooks

APAC IPOs & Placements

Zhen Zhou, Toh

CapitaLand Ascendas REIT / Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/ascendas-real-estate-investment-trust" target="_blank" data-smartkarma-citation="entities:39:1" rel="noopener">Ascendas Real Estate Investment Trust (AREIT SP)</a> is raising up to US$916m (S$1,234m) to acquire various properties.</p><p>Overall, the deal scored well on our framework owing to the good track record and momentum but it was dragged down by its large deal size.</p><p>Our previous coverage:</p><ul>
<li><a href="https://www.smartkarma.com/insights/areit-placement-expected-to-be-dpu-accretive-but-the-acquisition-might-take-a-while" target="_blank" rel="noopener">AREIT Placement - Expected to Be DPU Accretive but the Acquisition Might Take a While</a></li>
<li><a href="https://www.smartkarma.com/insights/areit-paying-for-acquisition-with-only-equity-doesn-t-add-up-dpu-to-fall-by-3-4" target="_blank" rel="noopener">AREIT - Paying for Acquisition with Only Equity Doesn’t Add Up, DPU to Fall by 3-4%</a></li>
</ul>

Ascendas Real Estate Investment Trust (AREIT SP) is raising up to US$916m (S$1,234m) to acquire various properties.Overall, the deal scored well on our framework owing to the good track record and momentum but it was dragged down by its large deal size.Our previous coverage:
AREIT Placement - Expected to Be DPU Accretive but the Acquisition Might Take a While
AREIT - Paying for Acquisition with Only Equity Doesn’t Add Up, DPU to Fall by 3-4%


Ascendas REIT Placement - Multiple Acquisitions to Be Made, Starting From US Office Properties

Singapore

CapitaLand Limited is a real estate company focused on investment holding. The Company and its subsidiaries are principally engaged in investment holding, real estate development, investment in real estate financial products and real estate assets, investment advisory and management services, as well as the management of serviced residences.

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Capitaland (CAPL SP)

Last Week in Event SPACE: Capitaland, Languang Justbon, Fast Retailing, Crown Resorts, Adani Power

The weekend is here! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed...

David Blennerhassett

CapitaLand Restructuring - CLIM Should Have Been a Pure Fee Business

On 22nd Mar 2021, Capitaland (CAPL SP) announced a strategic restructuring of CAPL and listing of CLIM. Having looked at the company in a prior...

Sumeet Singh