ARA Asset Management

(09-06-2014, 10:00 AM)specuvestor Wrote:

(06-05-2014, 09:24 AM)Muser Wrote: Why buy
- owners & mgmt with good track record (john lim, li ka shing group, straits trading)
- significant share holding by CEO and strategic owners (straits trading, li ka shing group)

What is your view on John Lim & LKS selling to Straits trading?

Personally, I would prefer John Lim and Cheung Kong to continue holding big stakes and even buy more if ARA's price falls. I would not like to see John parring down his stake any further.

However, as John Lim himself said, Straits Trading coming into the picture actually strengthen their relations network, which is very important in this relations business. IMHO, it also further improves their financial backing.

There would be a lot happening between Straits and ARA. For one, Straits is now the biggest shareholder, and would take a keen interest in making sure ARA continue its success. Straits recent purchase of Suntec Reits is probably the beginning of such strategic moves.

Market has been speculating that we would probably see Straits injecting its properties into Suntec Reit.

John Lim's sale of part of his stake to Straits probably allows him the cash he needs to form the seed capital at the Straits Real Estate, which will later be managed by ARA.

Eventually, all these spells good times ahead for ARA.

(09-06-2014, 10:00 AM)specuvestor Wrote:

(06-05-2014, 09:24 AM)Muser Wrote: Why buy
- owners & mgmt with good track record (john lim, li ka shing group, straits trading)
- significant share holding by CEO and strategic owners (straits trading, li ka shing group)

What is your view on John Lim & LKS selling to Straits trading?

I don't think john lim is selling out of the company...on the contrary, he has gained straits trading as a strategic investor who may help attract & bring in more investments & assets to manage..

I'm just curious what strategic value that Straits can give that LKS cannot

Straits has loads of idle cash for sure. Short term would help in seed capital directly or indirectly

(09-06-2014, 01:07 PM)specuvestor Wrote: I'm just curious what strategic value that Straits can give that LKS cannot

Straits has loads of idle cash for sure. Short term would help in seed capital directly or indirectly

Cheung Kong has strong networks in North Asia/Greater China, Straits Trading is an old South East Asian company. So now ARA has made inroads into 2 important regions.

(09-06-2014, 01:07 PM)specuvestor Wrote: I'm just curious what strategic value that Straits can give that LKS cannot

Straits has loads of idle cash for sure. Short term would help in seed capital directly or indirectly

I think this has been mentioned by Mr Lim previously at one (or more) of his interviews. As someone correctly pointed out, it is about the relationships that STC can bring to the table.

Now, you have a tripartite partnership of John, The Li family that is strong in China, HK and the Tan family, closer to home. If I am John, what more reputable business partner names can you ask for if you have these two.

Vested.

Straits Trading obviously has more aligned interest with ARA than Cheung Kong. For Straits Trading, ARA is its new strategic direction. Straits Trading could co-invest with ARA and probably even buy more shares if its share price drops to certain level. For Cheung Kong, ARA is nothing. Whether ARA @20 cents or ARA @ $2 probably does not move a needle.

In a way, Straits Trading is a close partner but Cheung Kong probably is an outsider at least now, probably in the future.

However, ARA should watch its SG&A expense. It is running faster than its revenue.

^^ Agree, but the other way to look at it is ARA is not where it is without CK. For some reason LKS is willing to give John Lim a hand.

Remains to be seen if Straits Trading can give a better hand

> Straits Trading is an old South East Asian company. So now ARA has made inroads into 2 important regions.

Straits Trading family owner Tan Chin Tuan is a person with a very good reputation.

John Lim is smart at picking partners that enhance ARA's reputation and network.

Chew Ghek Khim will do everything she can to open doors for ARA - be it bring funds or bring assets where Straits has connections.

No surprises here as ARA is on the hunt with the backing of S Trading's funds...


Devine puts itself on the block
THE AUSTRALIAN JULY 17, 2014 12:00AM

Sarah Danckert

Property Reporter
Melbourne
RESIDENTIAL builder Devine Limited has put itself on the sales block after its majority shareholder Leighton Holdings decided to exit the business. Potential buyers are expected to vie for the $3 billion pipeline.

Some believe Devine could sell for as much as $1.32 a share, valuing the business at $210m, and private developers as well as larger listed groups are expected to ­review the Brisbane company.

The Devine sale comes as Australian property companies go through a process of consolidation including the takeover of Australand by Frasers Centrepoint.

The sale process also coincides with a considerable uplift in the residential property market.

Devine, with housing estates and an apartment projects in Queensland, Victoria and South Australia, has been mooted as a takeover prospect since Leighton announced it would sell its 50.6 per cent stake in the company last month.

Yesterday Devine managing director David Keir announced the sale process.

“There are no assurances that a sale of Devine will be finalised or what form the transaction (if any) will ultimately take,” Mr Keir said.

Goldman Sachs has been appointed as an adviser to the sale, as revealed by The Australian.

Leighton also is looking to offload its $5 billion property arm, which includes major developments in Melbourne and Perth.

According to sources, ARA Asset Management is considering a tilt for the Leighton Properties business, potentially vying with Mirvac and Lend Lease.

Devine has posted losses for the past three years as the property downturn in Queensland ate away at revenues and it wrote down the value of several projects.

It has flagged a profit of between $7m and $8m this year after a raft of asset sales.

Lend Lease and David Devine’s Metro Properties also have been mentioned as possible buyers of Devine, which has a land bank, apartment projects and a construction business.

Three other potential bidders for Devine — Japan’s Sekisui House and Daiwa House, and Singapore-controlled AVJennings — have all but ruled themselves out of the race.

AVJennings chief executive Peter Summers said the group was confident in the direction of the Australian and New Zealand residential markets. “As a result we are certainly looking to increase our land holdings and we are actively looking at opportunities. However, our main focus is on specific plans around other types of activities at this stage,” he said.

Sources said a sticking point in the sale of the company was the $50m debt guarantee Leighton has provided to Devine at the behest of the group’s lender, ANZ.

A would-be bidder would be required to cover the guarantee, according to banking sources.

Other possible buyers such as Cedar Woods, Villawood, Peet and Sunland are all thought to be cool on buying Devine.

An analyst who declined to be named said Devine showed “more upside” and could sell for as much as $1.32 a share, based on its current book value of $1.52.

Devine closed down 1c at $1.08.

CalPERS Looking Beyond A+ Assets for China Bargains

2014/06/09 by Michael Cole

The second biggest pension fund in the US has $257 billion to invest and is looking for more deals in China. However, even a giant fund manager that has been investing in China for several years realises that good deals are getting harder to find in the country’s real estate market................................................................................

CalPERS, which does not maintain an office in China, in 2012 invested $480 million into ARA’s Long Term Hold Fund and another $50 million in ARA’s Asia Dragon Fund II. The public fund manager also invested in ARA funds in 2007 and in total has devoted 0.5 percent of its assets invested to ARA managed vehicles.

Meng indicated that CalPERS values working with ARA because the fund manager invests with them, rather than selling off assets that it already owns. ARA Asset Management is one of the largest companies belonging to Li Ka-shing, who is estimated to be Asia’s richest man.

http://www.mingtiandi.com/real-estate/fi...al-search/

(vested)