Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

HK Type 4 license through Ballingal Investment Advisors Ltd. ("BIA" or "BIAL")

BACKGROUND
I have 20+yrs experience in Asia doing alternative strategies (i.e. non-delta1 non long-only) in fixed income, equity derivatives, and activist/catalyst/event-driven and long-short equity strategies with most of that time spent managing money. 

4 years in fixed income macro, 8 years running internal hedge fund and 4yrs investment banking at Citi in Japan, 3 years running an Asia multi-strat portfolio at a hedge fund, 4+yrs as an independent special situations analyst.

Pan-Asia Catalysts/Events

FIRST REIT Rights Right FIRST REIT. Right On.

Quiddity Advisors

Event-Driven

Last week, after gaining approval at its EGM, Singaporean healthcare REIT, <a href="https://www.smartkarma.com/entities/first-real-estate-investment-trust" target="_blank" data-smartkarma-citation="entities:15848:1" rel="noopener">First REIT (FIRT SP)</a>, launched a renouncable <a href="https://firstreit.listedcompany.com/newsroom/20210119_173452_AW9U_O5KKB80T35AKNDMP.1.pdf" target="_blank" rel="noopener">Rights Issue</a> to raise gross proceeds of approximately S$158.2 million.First REIT was facing a significant refinancing hurdle, with approximately 80.2% (or approximately S$395.7 million) of its debt coming due within the next 17 months. To meet their debt obligations, the company negotiated with lenders to refinance their existing S$400 million secured loan facilities with a new S$260 million loan facility. Although their lenders agreed to this, it was conditional on First REIT being able to raise the remaining S$140 million though a rights issue. The sponsor group of First REIT, <a href="https://www.smartkarma.com/entities/oue-ltd" target="_blank" data-smartkarma-citation="entities:9984:1" rel="noopener">OUE Ltd (OUE SP)</a>, has provided an irrevocable undertaking to backstop the entire Proposed Rights Issue.Separately, First REIT will also be restructuring their Master Lease Agreements ("MLA") with <a href="https://www.smartkarma.com/entities/lippo-karawaci-tbk-pt" target="_blank" data-smartkarma-citation="entities:3121:1" rel="noopener">Lippo Karawaci (LPKR IJ)</a> and PT Metropolis Propertindo Utama (MPU) to restructure the MLAs relating to the 11 hospitals and 3 hospitals, respectively, which they were leasing from <a href="https://www.smartkarma.com/entities/first-real-estate-investment-trust" target="_blank" data-smartkarma-citation="entities:15848:1" rel="noopener">First REIT (FIRT SP)</a>.Below is a look at the details of the rights issue and the impact of the MLA restructuring on <a href="https://www.smartkarma.com/entities/first-real-estate-investment-trust" target="_blank" data-smartkarma-citation="entities:15848:1" rel="noopener">First REIT (FIRT SP)</a>.

Last week, after gaining approval at its EGM, Singaporean healthcare REIT, First REIT (FIRT SP), launched a renouncable Rights Issue to raise gross proceeds of approximately S$158.2 million.First REIT was facing a significant refinancing hurdle, with approximately 80.2% (or approximately S$395.7 million) of its debt coming due within the next 17 months. To meet their debt obligations, the company negotiated with lenders to refinance their existing S$400 million secured loan facilities with a new S$260 million loan facility. Although their lenders agreed to this, it was conditional on First REIT being able to raise the remaining S$140 million though a rights issue. The sponsor group of First REIT, OUE Ltd (OUE SP), has provided an irrevocable undertaking to backstop the entire Proposed Rights Issue.Separately, First REIT will also be restructuring their Master Lease Agreements ("MLA") with Lippo Karawaci (LPKR IJ) and PT Metropolis Propertindo Utama (MPU) to restructure the MLAs relating to the 11 hospitals and 3 hospitals, respectively, which they were leasing from First REIT (FIRT SP).Below is a look at the details of the rights issue and the impact of the MLA restructuring on First REIT (FIRT SP). 

FIRST REIT Rights Set FIRST REIT Right. Right On.