Research from SooChow CSSD Capital Markets (Asia), SCCM Asia Research

SCCM Asia Research

Headquartered in Singapore, SooChow CSSD Capital Markets (Asia) is an investment bank focusing on emerging growth companies across Asia, providing a full suite of investment banking services, including corporate finance, mergers and acquisitions advisory, equity capital markets, institutional equities sales and trading and equities research.

Research from SooChow CSSD Capital Markets (Asia)

Thematic (Sector/Industry)

Philippines Real estate / Thematic (Sector/Industry)

Mapletree North Asia Commercial Trust (MAGIC SP)

<h2>Singapore</h2><h3><a href="https://www.smartkarma.com/entities/ascott-residence-trust" target="_blank" data-smartkarma-citation="entities:6560" rel="noopener">Ascott Residence Trust (ART SP)</a> acquires three Japan rental housings for JPY6.78bn (S$85.2m); DPU accretive by +2.6%</h3><ul><li>ART has entered into agreements to acquire three freehold rental housing properties in central Sapporo for a total of JPY6.78bn (S$85.2m). The three rental housing properties – City Court Kita 1 jo, Big Palace Minami 5 jo, and Alpha Square Kita 15 jo came from unrelated third parties. The average EBITDA yield of the three acquisitions is ~4%. On a FY2020 pro forma basis, this transaction is expected to be DPS accretive by +2.6% with expected completion by end Jun21. This transaction will be funded by debt and part of the net proceeds from recent divestments of Somerset Xu Hui Shanghai. The exit yield was ~2% and ART has received net proceeds of RMB953.9m (~S$196.8m) and realized a net divestment gain of RMB582.6m (~S$120.2m)</li><li>The three rental housing properties with a total of 411 units will increase ART’s portfolio in Japan to over 4,500 units in 22 serviced residences, hotels and rental housing properties in nine cities. ART will have a total of 14 rental housing properties in Japan including four in Sapporo. The three rental housing properties will be managed by a local property manager, Kabushiki Kaisha Big Service, which is also the current property manager for ART’s rental housing property in Sapporo, Big Palace Kita 14 jo.</li></ul>

SingaporeAscott Residence Trust (ART SP) acquires three Japan rental housings for JPY6.78bn (S$85.2m); DPU accretive by +2.6%ART has entered into agreements to acquire three freehold rental housing properties in central Sapporo for a total of JPY6.78bn (S$85.2m). The three rental housing properties – City Court Kita 1 jo, Big Palace Minami 5 jo, and Alpha Square Kita 15 jo came from unrelated third parties. The average EBITDA yield of the three acquisitions is ~4%. On a FY2020 pro forma basis, this transaction is expected to be DPS accretive by +2.6% with expected completion by end Jun21. This transaction will be funded by debt and part of the net proceeds from recent divestments of Somerset Xu Hui Shanghai. The exit yield was ~2% and ART has received net proceeds of RMB953.9m (~S$196.8m) and realized a net divestment gain of RMB582.6m (~S$120.2m)The three rental housing properties with a total of 411 units will increase ART’s portfolio in Japan to over 4,500 units in 22 serviced residences, hotels and rental housing properties in nine cities. ART will have a total of 14 rental housing properties in Japan including four in Sapporo. The three rental housing properties will be managed by a local property manager, Kabushiki Kaisha Big Service, which is also the current property manager for ART’s rental housing property in Sapporo, Big Palace Kita 14 jo.

Lendlease Global Commercial REIT (LREIT SP)

ASEAN Builder's Scoop (1June21) - ART Acquires 3 JP Rental Housings