In this briefing:
1. Nomura Real Estate Master Fund Placement – Past Deal Did Well Only After a Slight Correction
Nomura Real Estate Master Fund, (3462 JP) plans to raise around US$300m to partially fund the acquisition of ten assets.
The assets are a mix of office, retail and logistics and all were completed only in 2018. The cap rates for the acquisition look reasonable versus the existing assets that the REIT owns and the acquisition will likely be DPU accretive despite the relatively larger share of equity financing in the acquisition.
The deal scores well on our framework. However, the stock hasn’t really corrected post the deal announcement and the prior deal provided decent returns only post a correction in the share price.
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