ARA Asset Management

I am speculating a large performance fee which would be used to finance the capex in Dynasty REIT. ARA needs a stake in the REIT to maintain control and prevent hostile actions.

In 3Q 2011, ARA received $18.5 million for the successful divestment of Suntec Singapore International Convention & Exhibition Centre in ARA Harmony Fund at 64% IRR after holding it for 2 years. ARA Harmony Fund acquired the property for $235 million and achieved equity multiple of 2.2 for the Fund.

Freedom:

ADF bought Nanjing International Finance Center from China Merchant Property Development in 2009 at a price of RMB 1.6 billion

ADF bought Shanghai International Capital Plaza from CSI Properties in 2011 at a price of RMB 1.16 billion.

ADF bought Dalian Tianxing Roosevelt Center from Mogan Stanley in 2009 for US$ 300 million.

Dynasty REIT is buying Nanjing IFC for RMB 2.678 billion, Shanghai IFC for RMB 1.564 billion and Dalian TRC for RMB 3.164 billion. This works out to around RMB 2.8 billion profits generated in 2-3 years holding period excluding distribution income. Hopefully Management will reveal the size of the performance fee during the 3Q results.

ARA has mentioned that the performance fee from the Dragon Fund is about $100m (maybe lesser after tax). That would probably be now used to anchor Dynasty Fund. They will have to accumulate another $100m, over time, to be co-invested in DF2.

(20-10-2012, 09:17 AM)Nick Wrote: I am speculating a large performance fee which would be used to finance the capex in Dynasty REIT. ARA needs a stake in the REIT to maintain control and prevent hostile actions.

In 3Q 2011, ARA received $18.5 million for the successful divestment of Suntec Singapore International Convention & Exhibition Centre in ARA Harmony Fund at 64% IRR after holding it for 2 years. ARA Harmony Fund acquired the property for $235 million and achieved equity multiple of 2.2 for the Fund.

Freedom:

ADF bought Nanjing International Finance Center from China Merchant Property Development in 2009 at a price of RMB 1.6 billion

ADF bought Shanghai International Capital Plaza from CSI Properties in 2011 at a price of RMB 1.16 billion.

ADF bought Dalian Tianxing Roosevelt Center from Mogan Stanley in 2009 for US$ 300 million.

Dynasty REIT is buying Nanjing IFC for RMB 2.678 billion, Shanghai IFC for RMB 1.564 billion and Dalian TRC for RMB 3.164 billion. This works out to around RMB 2.8 billion profits generated in 2-3 years holding period excluding distribution income. Hopefully Management will reveal the size of the performance fee during the 3Q results.

http://info.sgx.com/webcoranncatth.nsf/V...penelement

Dynasty REIT IPO has been suspended.

(24-10-2012, 05:32 PM)Nick Wrote: http://info.sgx.com/webcoranncatth.nsf/V...penelement

Dynasty REIT IPO has been suspended.

Surprisingly, ARA share price rose after the announcement of reit cancellation.

(25-10-2012, 05:07 PM)Share Investor Wrote:

(24-10-2012, 05:32 PM)Nick Wrote: http://info.sgx.com/webcoranncatth.nsf/V...penelement

Dynasty REIT IPO has been suspended.

Surprisingly, ARA share price rose after the announcement of reit cancellation.

My guess is that investors were apprehensive of the $100 million capex relating to Dynasty REIT.

(25-10-2012, 06:24 PM)Nick Wrote: My guess is that investors were apprehensive of the $100 million capex relating to Dynasty REIT.

Nick, could you explain a bit more on this? I didn't follow the IPO.

(25-10-2012, 07:11 PM)FFNow Wrote:

(25-10-2012, 06:24 PM)Nick Wrote: My guess is that investors were apprehensive of the $100 million capex relating to Dynasty REIT.

Nick, could you explain a bit more on this? I didn't follow the IPO.

ARA is the REIT Manager and Sponsor of Dynasty REIT. It had planned to invest $100 million in the REIT to secure a 10% stake and maintain its control. This was ARA first sponsored REIT so it needs a substantial equity stake in it (unlike its other managed REITs).

Quote:ARA Asset Management, in which Cheung Kong Holdings (0001) holds a 13.87 percent stake, has struck a deal to sell its Manulife Tower in North Point for HK$3.3 billion. The average price, at HK$8,594 per square foot, set a new benchmark for the fringe commercial district. The Singapore-based property fund bought the property in 2010 for HK$2.25 billion - meaning a profit of more than HK$1 billion is in store in just 2 years.

Source: http://www.thestandard.com.hk/news_detai...&pp_cat=30

I believe this is ADF1 asset.

(02-11-2012, 09:56 PM)Nick Wrote:

Quote:ARA Asset Management, in which Cheung Kong Holdings (0001) holds a 13.87 percent stake, has struck a deal to sell its Manulife Tower in North Point for HK$3.3 billion. The average price, at HK$8,594 per square foot, set a new benchmark for the fringe commercial district. The Singapore-based property fund bought the property in 2010 for HK$2.25 billion - meaning a profit of more than HK$1 billion is in store in just 2 years.

Source: http://www.thestandard.com.hk/news_detai...&pp_cat=30

I believe this is ADF1 asset.

Extracts from CIMB report,

Not all is lost for ADF I

ARA recently announced the suspension of the listing of Dynasty REIT but could relook it next year if sentiments improve. While we view a
successful listing as the best option for ARA, we believe that all is not lost even if it fails to take place as ARA can still earn promote fees through divestments of assets to third parties.

In fact, ADF I recently announced the sale of Manulife Tower in Hong Kong at HK$3.3bn, >40% above its purchase price.

(03-11-2012, 10:09 AM)KopiKat Wrote:

(02-11-2012, 09:56 PM)Nick Wrote:

Quote:ARA Asset Management, in which Cheung Kong Holdings (0001) holds a 13.87 percent stake, has struck a deal to sell its Manulife Tower in North Point for HK$3.3 billion. The average price, at HK$8,594 per square foot, set a new benchmark for the fringe commercial district. The Singapore-based property fund bought the property in 2010 for HK$2.25 billion - meaning a profit of more than HK$1 billion is in store in just 2 years.

Source: http://www.thestandard.com.hk/news_detai...&pp_cat=30

I believe this is ADF1 asset.

Extracts from CIMB report,

Not all is lost for ADF I

ARA recently announced the suspension of the listing of Dynasty REIT but could relook it next year if sentiments improve. While we view a
successful listing as the best option for ARA, we believe that all is not lost even if it fails to take place as ARA can still earn promote fees through divestments of assets to third parties.

In fact, ADF I recently announced the sale of Manulife Tower in Hong Kong at HK$3.3bn, >40% above its purchase price.

Think ADF I sponsors will be the main beneficiary of the sale.
ARA will either benefit from mangement fee, performance fee or if it has stake in ADF I. Please correct me if I am wrong.