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(09-11-2015, 02:43 PM)Contrarian Wrote: > 13 out of 14 of ADF I assets have been divested. One more to go..................
Good one. Is the payout calculated at the end of the divestment or at end of every year bro?
It all depends on the terms of the contract of the fund between the investors and the Fund sponsor. And each fund is different.
For some, performance bonus could be calculated and paid only after the fund is fully closed out.
For others, interim performance bonus could be paid out following the successful divestment of certain assets – but with clawback clauses to use prior distributed bonus to offset shortfall in the overall performance, when the fund is fully closed-out.
So far, I don’t recall any mentioning by ARA on receiving any performance bonus from ADF I.
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Research, research and research - Please do your own due diligence (DYODD) before you invest - Any reliance on my analysis is SOLELY at your own risk.
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ARA started another fund(Harmony II) to buy the Malaysian assets from ADF I. To me, it tells that ARA has a hard time to realize the assets from 3rd parties at the price it deems good.
As to sell Suntec REIT units:
1. ARA used to sell
2. ARA bought more units using borrowed money around current market price.
3. ARA borrowed more to finance itself
Does the above sound as if ARA is going to sell its Suntec REIT units any soon? Maybe ARA saw more potential in owning more Suntec REIT units now since it used to sell the units at lower price.
Good luck!
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11-11-2015, 10:50 PM
(This post was last modified: 11-11-2015, 11:12 PM by Boon.)
Well,
ARA has established several Private Funds franchises which represent different investment strategies/objectives catering to various investors’ specific needs.
ADF I is an “opportunistic” fund and has been in divestment mode since 2012.
Harmony III is a “Core-Plus” fund set up in 2015.
CIP was a separate account “Core-Plus” fund set up in 2012, managed for Calpers.
Investor pools in each fund is not exactly the same – though they could be investors that invest in more than one funds – Calpers is also an investor in ADF I.
ADF I sold the Malaysia malls to Harmony III.
ADF I sold the Dalian Roosevelt Plaza to CIP.
Buying and selling is part and parcel of the business - buy low/sell high is the modus operandi – as long as conflict of interests are probably managed – it doesn’t matter if is between funds and third parties or between “internal funds”.
Besides, there is a fit to divest assets from “opportunistic” funds into “core-plus” or “core” funds.
New or existing assets – it really doesn’t matter – as long as they are “good” assets that could “value-add”.
So, they have opted not to cut dividend or borrow more – but to raise more equity – ha-ha!
Research, research and research - Please do your own due diligence (DYODD) before you invest - Any reliance on my analysis is SOLELY at your own risk.
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Just some questions on my mind.
Who in ARA can benefit on asset growth, but no need to come out money e.g rights issue?
Mgt got alignment of interests or not, after cashed out???
"... but quitting while you're ahead is not the same as quitting." - Quote from the movie American Gangster
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> Who in ARA can benefit on asset growth, but no need to come out money e.g rights issue?
Last time Cheung Kung can. They got the assets AND the brand name.
Even when John Lim started ADF I, he put in S$20M of his own money. Then calpers followed.
Now... property funds got to pump seed capital.
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Although so far i don't intent to take up the right issues, but then i still curious about how to proceed with exercising the rights. I haven't done it before, anyone can share his experience?
Here are some of the dates for right issue:
1.) Last date and time for trading of “nil-paid” Rights(1) : 2 December 2015 at 5.00 p.m.
2.) Last date and time for acceptance of and payment for Rights Shares(1) : 8 December 2015 at 5.00 p.m.
3.) Expected date of issuance of Rights Shares : 16 December 2015
I assume that if i didn't sell my rights, by date (2) my broker firm such as UOB Kayhian will have a contract of buy order appear in my account asking me to pay?
The date (2) looks like a T+3 for date (1) to me.
If i do pay for the contract by date (2), by date (3) i will be seeing my ARA shares deposited to my CDP account as common shares?
If i didn't pay by date (2) then my shares will be gone with the wind and i will be incurring loss for not selling or paying?
Lastly based on the current last traded price of $1.26, so i do expect the right will be priced around $0.26 on the 1st day of trading on 24 Nov?
Did i make all my assumptions right?
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