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>New private home sales fell 24% MoM in Aug21; Take-up rate remains above 100% the past 3 months</h3><ul><li>Sales of new private homes fell last month after hitting a six-month high in Jul. Developers sold 1,215 units in Aug, down 24% MoM from 1,591 units in Jul21. On a YoY basis, sales were down 3.5% from 1,258 in Aug20. Including ECs sold, developers moved 1,322 new homes last month, 24.3% lower MoM than in Jul21 and 1% higher YoY from Aug20</li><li>Developers launched 836 units in Aug21, down 24.3% MoM from 1,104 units in Jul21, and plunging 47.2% YoY lower from 1,582 units in Aug20. There were no new ECs launched in Aug21. Aug21 take-up rate stood at 145% (from 144% in Jul21 and 107% in Jun20). The Watergardens at Canberra was the top seller last month, moving 267 units, or nearly 60% of its 487 units</li><li>Sales in Aug21 were driven by The Watergardens at Canberra, which sold 267 units, and Normanton Park, which sold 131 units. Excluding EC, sales volume in Aug21 was highest in OCR followed by RCR and CCR, respectively – 720 units (59.3%), 343 (28.2%) and 152 (12.5%), respectively.</li></ul>

SingaporeNew private home sales fell 24% MoM in Aug21; Take-up rate remains above 100% the past 3 monthsSales of new private homes fell last month after hitting a six-month high in Jul. Developers sold 1,215 units in Aug, down 24% MoM from 1,591 units in Jul21. On a YoY basis, sales were down 3.5% from 1,258 in Aug20. Including ECs sold, developers moved 1,322 new homes last month, 24.3% lower MoM than in Jul21 and 1% higher YoY from Aug20Developers launched 836 units in Aug21, down 24.3% MoM from 1,104 units in Jul21, and plunging 47.2% YoY lower from 1,582 units in Aug20. There were no new ECs launched in Aug21. Aug21 take-up rate stood at 145% (from 144% in Jul21 and 107% in Jun20). The Watergardens at Canberra was the top seller last month, moving 267 units, or nearly 60% of its 487 unitsSales in Aug21 were driven by The Watergardens at Canberra, which sold 267 units, and Normanton Park, which sold 131 units. Excluding EC, sales volume in Aug21 was highest in OCR followed by RCR and CCR, respectively – 720 units (59.3%), 343 (28.2%) and 152 (12.5%), respectively.

<h2>Singapore</h2><h3><a href="https://www.smartkarma.com/entities/ireit-global" target="_blank" data-smartkarma-citation="entities:10596" rel="noopener">IREIT Global (IREIT SP)</a> to raise S$126.7m from proposed equity fund raising      </h3><ul><li>IREIT is proposing an equity fund raising comprising an offering of new units to raise gross proceeds of ~S$126.7m. The proposed EFR will be comprised of a non-underwritten placement of 11,372,868 new units to Bond Capital Partners at an issue price of S$0.6155/new unit, which is expected to raise gross proceeds of ~S$7m. In addition, an underwritten pro rata and non-renounceable preferential offering of 201,137,870 new Units on the basis of 214 new units for every 1,000 existing units to be held on 29Jun21 to eligible unitholders at an issue price of S$0.595/new unit to raise gross proceeds of ~S$119.7m. IREIT intends to use part of the net proceeds to partially finance the total acquisition cost of ~S$195.7m (~EUR122.3m) in connection with the proposed acquisition of a portfolio of 27 retail properties located in France</li><li>The aggregate percentage unitholding of City Strategic Equity (CSEPL) and its concert parties is expected to decrease from 50.8% to 50.2% after the Placement. Assuming that CSEPL is allocated in full its application for the Excess Preferential Offering Units, CSEPL would hold 25.8% (comprising 297,207,061 Units) and, assuming that each of CSEPL’s concert parties only takes up their respective provisional allotments, CSEPL and its concert parties would hold 55.3%</li><li>As the unitholding of CSEPL and its concert parties does not fall below 50% after the Placement and CSEPL would not individually hold 30% or more of the Units even if CSEPL is allocated in full its application for the Excess Preferential Offering Units, accordingly, the requirement to make a mandatory general offer pursuant to Rule 14 of the Singapore Code of Take-overs and Mergers will not be triggered. For the avoidance of doubt, Tikehau Capital, CSEPL, AT Investments and IGGPL, among others, will rank last in the allocation of Excess Preferential Offering Units applications.</li></ul>

SingaporeIREIT Global (IREIT SP) to raise S$126.7m from proposed equity fund raising      IREIT is proposing an equity fund raising comprising an offering of new units to raise gross proceeds of ~S$126.7m. The proposed EFR will be comprised of a non-underwritten placement of 11,372,868 new units to Bond Capital Partners at an issue price of S$0.6155/new unit, which is expected to raise gross proceeds of ~S$7m. In addition, an underwritten pro rata and non-renounceable preferential offering of 201,137,870 new Units on the basis of 214 new units for every 1,000 existing units to be held on 29Jun21 to eligible unitholders at an issue price of S$0.595/new unit to raise gross proceeds of ~S$119.7m. IREIT intends to use part of the net proceeds to partially finance the total acquisition cost of ~S$195.7m (~EUR122.3m) in connection with the proposed acquisition of a portfolio of 27 retail properties located in FranceThe aggregate percentage unitholding of City Strategic Equity (CSEPL) and its concert parties is expected to decrease from 50.8% to 50.2% after the Placement. Assuming that CSEPL is allocated in full its application for the Excess Preferential Offering Units, CSEPL would hold 25.8% (comprising 297,207,061 Units) and, assuming that each of CSEPL’s concert parties only takes up their respective provisional allotments, CSEPL and its concert parties would hold 55.3%As the unitholding of CSEPL and its concert parties does not fall below 50% after the Placement and CSEPL would not individually hold 30% or more of the Units even if CSEPL is allocated in full its application for the Excess Preferential Offering Units, accordingly, the requirement to make a mandatory general offer pursuant to Rule 14 of the Singapore Code of Take-overs and Mergers will not be triggered. For the avoidance of doubt, Tikehau Capital, CSEPL, AT Investments and IGGPL, among others, will rank last in the allocation of Excess Preferential Offering Units applications.

ASEAN Builder's Scoop (23Jun21) - IREIT Proposes ~S$127m EFR

<h2>Singapore</h2><h3><a href="https://www.smartkarma.com/entities/mapletree-north-asia-commercial-trust" target="_blank" data-smartkarma-citation="entities:5127" rel="noopener">Mapletree North Asia Commercial Trust (MAGIC SP)</a> to acquire HP Tokyo HQ building for S$474.7m; DPU accretive by +2.4%</h3><ul><li>MAGIC has entered into an agreement to buy 98.47% effective interest in a freehold single-tenanted office building in Tokyo at an agreed property value of JPY38.8bn (S$474.7m). The property is now used as Hewlett-Packard Japan headquarters from Hulic Co, an unrelated third party vendor. The balance effective interest of 1.53% in the property will be held by Mapletree Investments Japan Kabushiki Kaisha, an indirect wholly-owned subsidiary of Mapletree Investments, MAGIC’s sponsor</li><li>The property is 100% leased to Hewlett-Packard Japan and has a lease expiry of 8.8 years. The AUM of the enlarged portfolio will stand at S$8.4bn, or an increase of 6% from existing portfolio of S$7.9bn. Contribution from Japan will increase from 16.6% to 21.3% by AUM, or an increase from 22.4% to 26.7% by NPI</li><li>MAGIC intends to finance the purchase and relevant costs through a combination of debt financing and issuance of perpetual securities. The estimated NPI yield is 3.7%. On a FY21 pro-forma basis, the acquisition is expected to be DPU accretive by +2.4%</li><li>Aggregate leverage post acquisition is expected to be 41.9%, up marginally from 41.5%. Completion is subject to the conditions being fulfilled and is expected to take place by 30Jun.</li></ul><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/210/110/original/image003.png?1622425518" class="editor-image img-responsive" data-smartkarma-image-id="210110"></figure></section>

SingaporeMapletree North Asia Commercial Trust (MAGIC SP) to acquire HP Tokyo HQ building for S$474.7m; DPU accretive by +2.4%MAGIC has entered into an agreement to buy 98.47% effective interest in a freehold single-tenanted office building in Tokyo at an agreed property value of JPY38.8bn (S$474.7m). The property is now used as Hewlett-Packard Japan headquarters from Hulic Co, an unrelated third party vendor. The balance effective interest of 1.53% in the property will be held by Mapletree Investments Japan Kabushiki Kaisha, an indirect wholly-owned subsidiary of Mapletree Investments, MAGIC’s sponsorThe property is 100% leased to Hewlett-Packard Japan and has a lease expiry of 8.8 years. The AUM of the enlarged portfolio will stand at S$8.4bn, or an increase of 6% from existing portfolio of S$7.9bn. Contribution from Japan will increase from 16.6% to 21.3% by AUM, or an increase from 22.4% to 26.7% by NPIMAGIC intends to finance the purchase and relevant costs through a combination of debt financing and issuance of perpetual securities. The estimated NPI yield is 3.7%. On a FY21 pro-forma basis, the acquisition is expected to be DPU accretive by +2.4%Aggregate leverage post acquisition is expected to be 41.9%, up marginally from 41.5%. Completion is subject to the conditions being fulfilled and is expected to take place by 30Jun.

ASEAN Builder's Scoop (31May21) - MAGIC Acquires HP Tokyo HQ Building

<h2>Singapore</h2><h3><a href="https://www.smartkarma.com/entities/lhn-ltd" target="_blank" data-smartkarma-citation="entities:27234" rel="noopener">LHN Ltd (LHN SP)</a> 1H21 results boosted by dormitory management contracts; Continue to ride on co-living trend</h3><ul><li>1H21 revenue increased 24.9% YoY to S$64.5m, primarily due to higher contributions from Facilities Management Business (+225.5% YoY) and Logistics Services Business (+6.0% YoY), partially offset by lower revenue from Space Optimisation Business (-33.6% YoY)</li><li>Space Optimisation: Revenue fell 33.6% YoY to S$19.4m in 1H21, due to lower contributions from Industrial Properties (-42.7% YoY to S$8.8m) and Commercial Properties (-53.8% YoY to S$4.1m), partially offset by higher revenue from Residential Properties (+28.9% YoY to S$6.5m). Lower revenues from Industrial and Commercial Properties were mainly due to expiry of 6 master leases, negative reversions, downtime at 1557 Keppel Road due to AEI works and IFRS 16 impacts. Occupancy for Industrial Properties -0.9pp YoY to 89.0% in 1H21 (vs. 89.9% in 1H20), while occupancy for Commercial Properties -15.3pp YoY to 69.2% in 1H21 (vs. 84.5% in 1H20). Meanwhile, higher revenue from Residential Properties was boosted by new serviced residence in Cambodia (started in 1Q21) and increase in revenue at 1A Lutheran Road</li><li>Facilities Management: Revenue increased by 225.5% YoY to S$31.6m in 1H21, mainly due to the increase in facilities management services provided for short-term contracts under the dormitory business</li><li>Logistics Services: Revenue grew 6.0% YoY to S$13.5m in 1H21, mainly due to increase in transportation services provided from the trucking business</li><li>1H21 PATMI increased 366.3% YoY to S$14.8m on higher other income and share of results from associates and joint ventures. 1H21 dividend came in at S$0.75c per share (+300% YoY), translating to an annualised dividend yield of ~4.5%. LHN’s cash and bank balances came in at S$36.3m, while net gearing (excluding IFRS16 impact) stood at 0.31x</li><li>LHN is currently trading at 4.3% FY21E dividend yield and 5.30x FY21E P/E</li></ul>Comments: 1H21 Revenue and PATMI form 52.2% and 59.1% of our full-year FY21E forecasts, respectively. We have expected 1H21 results to be higher than 2H21E due to the frontloading of dormitory management contracts (expected to end in 3Q21). With the resurgence of Covid-19 cases in Singapore, we do not discount the probability of LHN renewing the dormitory management contracts. Nonetheless, we believe its string of expansion plans for co-living business should provide steady growth moving forward. In addition to the new serviced residence in Cambodia (commissioned since 1Q21), 1557 Keppel Road and Nan’an China should also start contributing in FY21E. Meanwhile, newly acquired 320 Balestier Road (16Dec20), as well as proposed acquisitions of 40 &amp; 42 Amber Road (to be completed by 8Jun21), 8 strata units at Fu Yuen Building (subject to completion of two underlying options), and 115 Geylang Road (to be completed by 21Jul21) should drive growth in FY22E and onwards. We are currently reviewing our recommendations.

SingaporeLHN Ltd (LHN SP) 1H21 results boosted by dormitory management contracts; Continue to ride on co-living trend1H21 revenue increased 24.9% YoY to S$64.5m, primarily due to higher contributions from Facilities Management Business (+225.5% YoY) and Logistics Services Business (+6.0% YoY), partially offset by lower revenue from Space Optimisation Business (-33.6% YoY)Space Optimisation: Revenue fell 33.6% YoY to S$19.4m in 1H21, due to lower contributions from Industrial Properties (-42.7% YoY to S$8.8m) and Commercial Properties (-53.8% YoY to S$4.1m), partially offset by higher revenue from Residential Properties (+28.9% YoY to S$6.5m). Lower revenues from Industrial and Commercial Properties were mainly due to expiry of 6 master leases, negative reversions, downtime at 1557 Keppel Road due to AEI works and IFRS 16 impacts. Occupancy for Industrial Properties -0.9pp YoY to 89.0% in 1H21 (vs. 89.9% in 1H20), while occupancy for Commercial Properties -15.3pp YoY to 69.2% in 1H21 (vs. 84.5% in 1H20). Meanwhile, higher revenue from Residential Properties was boosted by new serviced residence in Cambodia (started in 1Q21) and increase in revenue at 1A Lutheran RoadFacilities Management: Revenue increased by 225.5% YoY to S$31.6m in 1H21, mainly due to the increase in facilities management services provided for short-term contracts under the dormitory businessLogistics Services: Revenue grew 6.0% YoY to S$13.5m in 1H21, mainly due to increase in transportation services provided from the trucking business1H21 PATMI increased 366.3% YoY to S$14.8m on higher other income and share of results from associates and joint ventures. 1H21 dividend came in at S$0.75c per share (+300% YoY), translating to an annualised dividend yield of ~4.5%. LHN’s cash and bank balances came in at S$36.3m, while net gearing (excluding IFRS16 impact) stood at 0.31xLHN is currently trading at 4.3% FY21E dividend yield and 5.30x FY21E P/EComments: 1H21 Revenue and PATMI form 52.2% and 59.1% of our full-year FY21E forecasts, respectively. We have expected 1H21 results to be higher than 2H21E due to the frontloading of dormitory management contracts (expected to end in 3Q21). With the resurgence of Covid-19 cases in Singapore, we do not discount the probability of LHN renewing the dormitory management contracts. Nonetheless, we believe its string of expansion plans for co-living business should provide steady growth moving forward. In addition to the new serviced residence in Cambodia (commissioned since 1Q21), 1557 Keppel Road and Nan’an China should also start contributing in FY21E. Meanwhile, newly acquired 320 Balestier Road (16Dec20), as well as proposed acquisitions of 40 &amp; 42 Amber Road (to be completed by 8Jun21), 8 strata units at Fu Yuen Building (subject to completion of two underlying options), and 115 Geylang Road (to be completed by 21Jul21) should drive growth in FY22E and onwards. We are currently reviewing our recommendations.

ASEAN Builder's Scoop (14May21) - LHN Robust 1H21, Boosted by Mgmt Contracts

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

<figure class="editor-figure mceNonEditable"><img src="https://api2.sgx.com/sites/default/files/2020-12/HattenLand-CEO.jpg" class="editor-image img-responsive"></figure>
<div class="content-caption">Hatten Land CEO</div>

For entrepreneur Dato' Colin Tan, developing a real estate asset is akin to raising a child - it's a journey that is exhilarating, rewarding and challenging all at once. "Every property project is like a child that needs to be nurtured and cared for," said the Executive Chairman and Managing Director of SGX-listed Hatten Land. "We use the best of our abilities and resources to develop and optimise the project's potential for the benefit of all stakeholders, while at the same time, overcoming obstacles and challenges that arise from day to day." Even the name reflects this ethos. "The name 'Hatten' is derived from the Japanese word for growth and development," he added. Singaporean-born Tan graduated from the University of Dublin with a Bachelor of Science in Finance in 2009. Back in 2005, he and his brother, Edwin, got a headstart in the family's real estate business under the Hatten Group through their involvement in the revival of an abandoned shopping mall project in the state of Melaka. The project was successfully completed and it is now Melaka's largest shopping mall. Over the past decade, Hatten Group has morphed into a leading property player in Melaka, and its core businesses range from real estate development and investment to hospitality, retail and education. As Hatten Group's property assets became larger and more diversified, the Tan brothers decided to spin off their real estate development business into a separate entity, through a reverse takeover of SGX-listed VGO Corporation Ltd in 2017. It was renamed Hatten Land Ltd. "Although Hatten Group has gained good traction with a growing track record of projects in Melaka and the rest of Malaysia, our brand profile is not widely recognised across Southeast Asia," Tan noted. "In light of our regional ambitions, we spun off Hatten Land and listed it on SGX Catalist to build a much larger, international profile. This would allow us to enhance our branding and secure more opportunities for M&amp;A opportunities." Headquartered in Melaka, Hatten Land has established itself as one of the premier developers in the historical city, which is located on Peninsular Malaysia's west coast. It specialises in integrated residential, hotel and commercial developments. With the Right of First Refusal and call options to more than 20 land parcels and development rights in high-growth sites throughout Malaysia, it&nbsp;is able to review if a specific land bank is suitable for development before releasing it to other developers. This gives it near-unrivalled and priority access to many prime plots in the country. Hatten Land has also won more than 50 awards and accolades for its quality developments, innovative designs and avant-garde architectural concepts. Its track record as a visionary developer includes constructing Melaka's tallest building and largest shopping mall. Hatten Land's current development portfolio comprises five integrated mixed-use development projects and one retail mall in Melaka. "One of the high points in my corporate journey has been playing a part in shaping Melaka's tourism landscape, creating more economic opportunities, as well as developing perennial and iconic landmarks in the state," Tan noted. Technological Edge Looking ahead, Hatten Land's vision is to transform itself into one of Southeast Asia's leading real estate developers with a strong technological edge. Over the next three to five years, two of its key growth drivers will be property technology, or proptech, as well as wellness and healthcare property assets. "Real estate is one of the oldest industries in the world, and worth trillions of dollars in every economy, but the technology related to property is still in a nascent growth stage," Tan said. "Proptech is starting to make its mark in the areas of property development and investment, the occupier market, as well as estate agencies. That includes online listings, virtual reality, machine learning, big data and crowd-sourcing." For Hatten Land, its proptech strategy revolves around its recent acquisition of a 20% stake in blockchain company ECXX Global Pte Ltd. ECXX has obtained approval from the Monetary Authority of Singapore (MAS) for admission to the Fintech Sandbox Express under a Recognised Market Operator (RMO) regime. With this approval, ECXX plans to launch a blockchain-based securities exchange platform, ecxx.co, which offers various asset-backed digital securities - including real estate, private equity, venture capital and investment funds - to institutional and accredited non-individual investors. Hatten Land will work with ECXX to explore opportunities to monetise its property assets through this platform, creating asset-based securitisation tokens that can be regulated and traded. Hatten Land will also focus on incubating up-and-coming tech companies, so as to create innovative applications and solutions that can be adopted in tourism, retail and hospitality. It&nbsp;has also developed MAI, a mobile phone super app that allows users to earn and redeem points, as well as make payments, in Melaka. The next priority on Tan's list is creating a new stream of recurring revenue for Hatten Land by pursuing healthcare and wellness property assets. It&nbsp;is currently constructing Satori, a mixed development project integrating hospitality, retail, residential with health, wellness and beauty services, located in the heart of Melaka. "Using Satori as a launch pad, we're looking to partner well-known medical institutions to offer memberships that can provide patients access to comprehensive and quality services," Tan said. "Designed around patient needs and using new healthcare technology solutions, these memberships aim to provide primary care, preventative, as well as health maintenance services for members." And while future growth avenues look promising, challenges abound. COVID-19, in particular, has created major hurdles. "As a tourism state, the business impact in Melaka and on the Hatten Land group of companies has been distinct, with a significant reduction in international and domestic tourist arrivals," Tan said. "At the same time, potential investors are expected to conserve cash to ride out this prolonged period of uncertainty, rather than committing to big-ticket items such as property." Fortifying Resiliency Against this backdrop of weak consumer sentiment and a challenging business environment, Hatten Land reported a net loss of RM231.0 million for the full year ended 30 June 2020, notwithstanding a profitable first six months, mainly due to impairments, a write down and adoption of a new accounting policy. It has embarked on a restructuring exercise for its two debt-ridden subsidiaries, MDSA Resources Sdn Bhd and MDSA Ventures Sdn Bhd. This is aimed at strengthening their balance sheets and re-aligning their legacy contractual obligations, so as to achieve a more sustainable capital structure, in line with the current business climate. In August 2020 , Hatten Land also unveiled a new strategic investor - Singapore-based hospitality and investment company Tayrona Capital Pte Ltd - for its Harbour City project in Melaka. This is expected to generate gross proceeds of US$60 million for once the transaction is completed. "Our first priority is to unlock the value of our quality property assets," Tan said. "In the current environment, we have also undertaken various initiatives to preserve cash, bolster our balance sheet, and boost business resiliency." He pointed to Hatten Land's&nbsp;various cost-containment measures, which include salary adjustments and reduction of non-essential expenses to balance its near-term priorities. "We will continue to adopt a prudent approach to capitalise on new opportunities to enhance our core business when market conditions normalise," he noted. Despite the challenges, Tan remains focused on Hatten Land's responsibilities to its various stakeholders. "That's our main driving force - it spurs us to forge ahead and make things right," he added. Understandably, many issues keep the 37-year-old up till the wee hours. "I'm always thinking about how to create growth initiatives and deliver value propositions, identify and manage business risks, engage and retain the best talent, as well as be a good and responsible leader." Ultimately, Tan wants to inspire his staff and team mates to become their best selves and realise their fullest potential. "I always encourage them to maintain a positive mindset, because there will constantly be challenges and failures in life," he added. "But there's always a light at the end of the tunnel, so we must persevere and move forward." &nbsp;
Hatten Land Ltd
Hatten Land is one of the leading property developers in Malaysia, specialising in integrated residential, hotel and commercial developments. Headquartered in Melaka, it is the property development arm of the conglomerate Hatten Group, which is a leading brand in Malaysia with core businesses in property development, property investment, hospitality, retail and education. Hatten Land began trading on the Catalist board of SGX on 28 February 2017 after completing its reverse takeover (RTO) of VGO Corporation.
The company website is: <a href="https://hattenland.listedcompany.com/" target="_blank" rel="noopener">hattenland.listedcompany.com</a> Click&nbsp;<a href="https://www.sgx.com/securities/equities/PH0" target="_blank" rel="noopener">here&nbsp;</a>for the company's StockFacts page. For the three months ended 30 September 2020 financial results, click&nbsp;<a href="https://links.sgx.com/1.0.0/corporate-announcements/GRXWFTR9P0EYQJH2/639180_1Q%20FY2021%20results%20announcement.pdf" target="_blank" rel="noopener">here</a>. &nbsp;
About&nbsp;kopi-C: the Company brew
Text: Jennifer Tan-Stanisic Photo: Company file kopi-C&nbsp;is a regular column on the SGX Research website that features C-level executives of leading companies listed on Singapore Exchange. These interviews are profiles of senior management aimed at helping investors better understand the individuals who run these corporations. For previous editions of&nbsp;kopi-C: the Company brew,&nbsp;please click&nbsp;<a href="https://www.sgx.com/research-education/market-dialogues" target="_blank" rel="noopener">here</a>. &nbsp; For more information, or if you would like your senior executives to be featured on SGX Market Dialogues, please send suggestions to&nbsp;<a href="https://www.smartkarma.com/jennifer.t@sgx.com" target="_blank" rel="noopener">jennifer.t@sgx.com</a>.


Hatten Land CEO

For entrepreneur Dato' Colin Tan, developing a real estate asset is akin to raising a child - it's a journey that is exhilarating, rewarding and challenging all at once.  "Every property project is like a child that needs to be nurtured and cared for," said the Executive Chairman and Managing Director of SGX-listed Hatten Land.  "We use the best of our abilities and resources to develop and optimise the project's potential for the benefit of all stakeholders, while at the same time, overcoming obstacles and challenges that arise from day to day."  Even the name reflects this ethos. "The name 'Hatten' is derived from the Japanese word for growth and development," he added.  Singaporean-born Tan graduated from the University of Dublin with a Bachelor of Science in Finance in 2009.  Back in 2005, he and his brother, Edwin, got a headstart in the family's real estate business under the Hatten Group through their involvement in the revival of an abandoned shopping mall project in the state of Melaka. The project was successfully completed and it is now Melaka's largest shopping mall.  Over the past decade, Hatten Group has morphed into a leading property player in Melaka, and its core businesses range from real estate development and investment to hospitality, retail and education.  As Hatten Group's property assets became larger and more diversified, the Tan brothers decided to spin off their real estate development business into a separate entity, through a reverse takeover of SGX-listed VGO Corporation Ltd in 2017. It was renamed Hatten Land Ltd.  "Although Hatten Group has gained good traction with a growing track record of projects in Melaka and the rest of Malaysia, our brand profile is not widely recognised across Southeast Asia," Tan noted.  "In light of our regional ambitions, we spun off Hatten Land and listed it on SGX Catalist to build a much larger, international profile. This would allow us to enhance our branding and secure more opportunities for M&amp;A opportunities."  Headquartered in Melaka, Hatten Land has established itself as one of the premier developers in the historical city, which is located on Peninsular Malaysia's west coast. It specialises in integrated residential, hotel and commercial developments.  With the Right of First Refusal and call options to more than 20 land parcels and development rights in high-growth sites throughout Malaysia, it&nbsp;is able to review if a specific land bank is suitable for development before releasing it to other developers. This gives it near-unrivalled and priority access to many prime plots in the country.  Hatten Land has also won more than 50 awards and accolades for its quality developments, innovative designs and avant-garde architectural concepts. Its track record as a visionary developer includes constructing Melaka's tallest building and largest shopping mall.  Hatten Land's current development portfolio comprises five integrated mixed-use development projects and one retail mall in Melaka.  "One of the high points in my corporate journey has been playing a part in shaping Melaka's tourism landscape, creating more economic opportunities, as well as developing perennial and iconic landmarks in the state," Tan noted.  Technological Edge  Looking ahead, Hatten Land's vision is to transform itself into one of Southeast Asia's leading real estate developers with a strong technological edge. Over the next three to five years, two of its key growth drivers will be property technology, or proptech, as well as wellness and healthcare property assets.  "Real estate is one of the oldest industries in the world, and worth trillions of dollars in every economy, but the technology related to property is still in a nascent growth stage," Tan said.  "Proptech is starting to make its mark in the areas of property development and investment, the occupier market, as well as estate agencies. That includes online listings, virtual reality, machine learning, big data and crowd-sourcing."  For Hatten Land, its proptech strategy revolves around its recent acquisition of a 20% stake in blockchain company ECXX Global Pte Ltd. ECXX has obtained approval from the Monetary Authority of Singapore (MAS) for admission to the Fintech Sandbox Express under a Recognised Market Operator (RMO) regime.  With this approval, ECXX plans to launch a blockchain-based securities exchange platform, ecxx.co, which offers various asset-backed digital securities - including real estate, private equity, venture capital and investment funds - to institutional and accredited non-individual investors.  Hatten Land will work with ECXX to explore opportunities to monetise its property assets through this platform, creating asset-based securitisation tokens that can be regulated and traded.  Hatten Land will also focus on incubating up-and-coming tech companies, so as to create innovative applications and solutions that can be adopted in tourism, retail and hospitality. It&nbsp;has also developed MAI, a mobile phone super app that allows users to earn and redeem points, as well as make payments, in Melaka.  The next priority on Tan's list is creating a new stream of recurring revenue for Hatten Land by pursuing healthcare and wellness property assets. It&nbsp;is currently constructing Satori, a mixed development project integrating hospitality, retail, residential with health, wellness and beauty services, located in the heart of Melaka.  "Using Satori as a launch pad, we're looking to partner well-known medical institutions to offer memberships that can provide patients access to comprehensive and quality services," Tan said.  "Designed around patient needs and using new healthcare technology solutions, these memberships aim to provide primary care, preventative, as well as health maintenance services for members."  And while future growth avenues look promising, challenges abound. COVID-19, in particular, has created major hurdles.  "As a tourism state, the business impact in Melaka and on the Hatten Land group of companies has been distinct, with a significant reduction in international and domestic tourist arrivals," Tan said.  "At the same time, potential investors are expected to conserve cash to ride out this prolonged period of uncertainty, rather than committing to big-ticket items such as property."  Fortifying Resiliency   Against this backdrop of weak consumer sentiment and a challenging business environment, Hatten Land reported a net loss of RM231.0 million for the full year ended 30 June 2020, notwithstanding a profitable first six months, mainly due to impairments, a write down and adoption of a new accounting policy.  It has embarked on a restructuring exercise for its two debt-ridden subsidiaries, MDSA Resources Sdn Bhd and MDSA Ventures Sdn Bhd. This is aimed at strengthening their balance sheets and re-aligning their legacy contractual obligations, so as to achieve a more sustainable capital structure, in line with the current business climate.  In August 2020 , Hatten Land also unveiled a new strategic investor - Singapore-based hospitality and investment company Tayrona Capital Pte Ltd - for its Harbour City project in Melaka. This is expected to generate gross proceeds of US$60 million for once the transaction is completed.  "Our first priority is to unlock the value of our quality property assets," Tan said. "In the current environment, we have also undertaken various initiatives to preserve cash, bolster our balance sheet, and boost business resiliency."  He pointed to Hatten Land's&nbsp;various cost-containment measures, which include salary adjustments and reduction of non-essential expenses to balance its near-term priorities.  "We will continue to adopt a prudent approach to capitalise on new opportunities to enhance our core business when market conditions normalise," he noted.  Despite the challenges, Tan remains focused on Hatten Land's responsibilities to its various stakeholders. "That's our main driving force - it spurs us to forge ahead and make things right," he added.  Understandably, many issues keep the 37-year-old up till the wee hours. "I'm always thinking about how to create growth initiatives and deliver value propositions, identify and manage business risks, engage and retain the best talent, as well as be a good and responsible leader."  Ultimately, Tan wants to inspire his staff and team mates to become their best selves and realise their fullest potential. "I always encourage them to maintain a positive mindset, because there will constantly be challenges and failures in life," he added.  "But there's always a light at the end of the tunnel, so we must persevere and move forward."  &nbsp;
Hatten Land Ltd
Hatten Land is one of the leading property developers in Malaysia, specialising in integrated residential, hotel and commercial developments. Headquartered in Melaka, it is the property development arm of the conglomerate Hatten Group, which is a leading brand in Malaysia with core businesses in property development, property investment, hospitality, retail and education. Hatten Land began trading on the Catalist board of SGX on 28 February 2017 after completing its reverse takeover (RTO) of VGO Corporation.
The company website is: hattenland.listedcompany.com  Click&nbsp;here&nbsp;for the company's StockFacts page.  For the three months ended 30 September 2020 financial results, click&nbsp;here. &nbsp;
About&nbsp;kopi-C: the Company brew
Text: Jennifer Tan-Stanisic Photo: Company file  kopi-C&nbsp;is a regular column on the SGX Research website that features C-level executives of leading companies listed on Singapore Exchange. These interviews are profiles of senior management aimed at helping investors better understand the individuals who run these corporations.  For previous editions of&nbsp;kopi-C: the Company brew,&nbsp;please click&nbsp;here. &nbsp;  For more information, or if you would like your senior executives to be featured on SGX Market Dialogues, please send suggestions to&nbsp;jennifer.t@sgx.com.

Hatten Land Recalibrates Strategy Amidst Challenges

Singapore

Hatten Land Limited operates as a property developer. The Company develops malls, hotels, and residential properties. Hatten Land serves customers in Singapore and Malaysia.

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Hatten Land (HATT SP)

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