Pan-Asia Index Flows & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Pan-Asia Index Flows & Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Event-Driven

<p>In 2020, we have so far witnessed 15 follow-on JREIT offerings cumulatively raising JPY463bn (~US$4.5bn). This has been something of a weak year, understandable because of the covid-19 crisis which hit equity market and JREIT prices in March, and keeping them soft for months afterwards.</p>
<p>Historically, January and February are the busiest months, for a variety of reasons.</p>
<p>From 2015-2020, on average, there have been ~7 offerings from the top 40 JREITs announced within the first two months of the calendar year accounting for roughly a third of the total number of offerings in each year during that period. </p>
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Source: Quiddity, Capital IQ (Data)</div>
In this insight, we take a look at the prospective candidates who are most likely to launch follow-on equity offerings near-term, and we look at the performance characteristics of J-REIT follow-on offerings and the likelihood of profit from participating in the event.</section>

In 2020, we have so far witnessed 15 follow-on JREIT offerings cumulatively raising JPY463bn (~US$4.5bn). This has been something of a weak year, understandable because of the covid-19 crisis which hit equity market and JREIT prices in March, and keeping them soft for months afterwards.
Historically, January and February are the busiest months, for a variety of reasons.
From 2015-2020, on average, there have been ~7 offerings from the top 40 JREITs announced within the first two months of the calendar year accounting for roughly a third of the total number of offerings in each year during that period. 









Source: Quiddity, Capital IQ (Data)
In this insight, we take a look at the prospective candidates who are most likely to launch follow-on equity offerings near-term, and we look at the performance characteristics of J-REIT follow-on offerings and the likelihood of profit from participating in the event.

J-REIT Offering Primer: Get Ready for Offering Season 2021

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Last Week in Event SPACE: Vedanta, Cardinal Res., Japan Retail Fund, HSBC, Opticomm, Tiffany/LVMH

Japan Metropolitan Fund Investment Corporation / Event-Driven

Japan Metropolitan Fund Investment Corporation

<p>On 28th August 2020, J-REITs <a href="https://www.smartkarma.com/entities/japan-retail-fund-investment" target="_blank" data-smartkarma-citation="entities:735:1" rel="noopener">Japan Retail Fund Investment (8953 JP)</a> ("<strong>JRF</strong>") and <a href="https://www.smartkarma.com/entities/mcubs-midcity-investment-cor" target="_blank" data-smartkarma-citation="entities:13197:1" rel="noopener">Mcubs Midcity Investment Cor (3227 JP)</a> ("<strong>MMI</strong>") announced an absorption-type <a href="https://www.midcity-reit.com/english/i36ilc0000002hdz-att/20200828_Investor_Presentation_for_the_Merger_e.pdf" target="_blank" rel="noopener">Merger</a> which is expected to form the largest diversified J-REIT based on current asset values.</p><p>JRF will be the surviving corporation and MMI will be the dissolving corporation in the merger. The newly formed combined entity will be named Japan Metropolitan Fund Investment Corporation (JMF).</p><p>The exchange ratio for the transaction has been set at 0.5 JRF Shares per MMI Share. </p><p>The Deal is conditional on receiving approval from the shareholders of both the Target and the Acquirer. Both shareholder meetings are expected to take place in October 2020 and the Deal is expected to complete in March 2021. </p><p>At the time of writing, MMI shares are trading through Terms optically but because of a dividend payment differential between now and the merger, the spread is trading at a little under 1% annualised as I type. </p><p>More below.</p>

On 28th August 2020, J-REITs Japan Retail Fund Investment (8953 JP) ("JRF") and Mcubs Midcity Investment Cor (3227 JP) ("MMI") announced an absorption-type Merger which is expected to form the largest diversified J-REIT based on current asset values.JRF will be the surviving corporation and MMI will be the dissolving corporation in the merger. The newly formed combined entity will be named Japan Metropolitan Fund Investment Corporation (JMF).The exchange ratio for the transaction has been set at 0.5 JRF Shares per MMI Share. The Deal is conditional on receiving approval from the shareholders of both the Target and the Acquirer. Both shareholder meetings are expected to take place in October 2020 and the Deal is expected to complete in March 2021. At the time of writing, MMI shares are trading through Terms optically but because of a dividend payment differential between now and the merger, the spread is trading at a little under 1% annualised as I type. More below.

MCUBS Midcity (3227 JP): Scrip Deal Trading Tight But There's a BETTER Trade

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

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

Mcubs Midcity Investment Cor / Equity Capital Markets

<p>MCUBS MidCity, a Japanese REIT focused on the mid-sized office assets, is raising USD 149 million via a placement to acquire three office/hotel assets in Tokyo and Osaka. In this insight, we will look at the details of the transaction and the placement. We are of the view that the transaction is a good deal for investors and would participate in the deal.</p>

MCUBS MidCity, a Japanese REIT focused on the mid-sized office assets, is raising USD 149 million via a placement to acquire three office/hotel assets in Tokyo and Osaka. In this insight, we will look at the details of the transaction and the placement. We are of the view that the transaction is a good deal for investors and would participate in the deal.

MCUBS MidCity Placement: A DPU Accretive Deal with Acquisition at Discount

Japan

MCUBS MidCity Investment Corporation is a real estate investment trust (REIT), which invests in income producing properties.  The Company invests in office buildings in Osaka area.

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