Listed Real Estate Asia, KT Capital Group

Jacob Cheng

Jacob has 7 years of professional buy-side experience in real estate investment and listed equities.  Jacob worked as a portfolio manager/analyst in Global Listed Real Estate team in AMP Capital and Macquarie Asset Management.  Prior to that, Jacob has spent 5 years in APG asset management, in the listed real estate team.  As one of the largest RE funds in Asia, he co-managed EUR6bn investment portfolio with the team with a focus on Hong Kong and China property.  He led the USD200m cornerstone investment in Wanda Commercial Properties IPO (the largest mall operator and developer in China).  Prior to this, Jacob has 3 years of experience in investment banking in Bank of America Merrill Lynch, covering equity, debt and M&A transactions across real estate, consumer& retail and TMT sectors.  Jacob specializes in fundamental bottom up research.  Aside from work, Jacob has a personal interest in spirituality and personal development.  He practiced meditation and has published a book about meaning of life in 2016.

Listed Real Estate Asia

Hysan Dev. 14 HK: Lack of Visible Catalyst with Low Trading Liquidity, Limited Re-Rating Potential

Wharf REIC: Beta Play W Multiple Catalysts, Lower Rates, Weaker Currency and Returning of Shoppers

KT Capital Group

Principal investments and advisory firm that focuses on connecting the CIS countries with East Asia.

Principal investments and advisory firm

Equity Bottom-Up

Wharf Real Estate Investment C / Equity Bottom-Up

<ul>
<li>In this insight, we conducted fundamental analysis on Wharf REIC .  It has a simple business model that it operates key malls in HK including Harbour City and Times Square</li>
<li>Macro-Wise, despite Wharf REIC should be seeing a recovery trend in terms of retail sales, the weak Chinese economy could pose concern on Wharf REIC’s retail sales</li>
<li>Wharf REIC is also facing several headwinds such as high interest cost and weak office market in Hong Kong.  We view the re-rating potential limited despite attractive valuation</li>
</ul>


In this insight, we conducted fundamental analysis on Wharf REIC .  It has a simple business model that it operates key malls in HK including Harbour City and Times Square
Macro-Wise, despite Wharf REIC should be seeing a recovery trend in terms of retail sales, the weak Chinese economy could pose concern on Wharf REIC’s retail sales
Wharf REIC is also facing several headwinds such as high interest cost and weak office market in Hong Kong.  We view the re-rating potential limited despite attractive valuation


Wharf REIC 1997HK: Should We Bet on HK Luxury Retail? Lack of Catalyst & Weak Chinese Spending Power