ARA Asset Management

[specuvestor]

P

Anyone asked what's his rationale of selling to Straits Trading and then privatise? Why 2 step process or what changed?

Never asked but here's my interpretation:

1. Sale to Straits was to find new sources of capital, which was especially useful when Straits agreed to buy 6% of Suntec reit (costs $300mio) so as to ensure control of ARA as manager.

2. Rights issue proved that staying listed was not correct. Whole affair was painful and slow. By the time all the approvals and EGMs are done, the opportunity to acquire is gone.

3. Warbug+AVIC offer came subsequently which was attractive esp when the guys are just PE guys (i.e. passive allocators of capital and not predatory). John/Straits/CK would not be comfy with an offer from e.g. Blackrock.

They could just do a placement to Warburg AVIC and get the money within a week, or that's what the tech companies used to tell me is the advantage of being listed. Up to the AGM authorised amount of course.

[AQ.]

They could just do a placement to Warburg AVIC and get the money within a week, or that's what the tech companies used to tell me is the advantage of being listed. Up to the AGM authorised amount of course.

This question was somewhat asked - some bloke asked why not stay listed with Warbug AVIC in the game.

The question was not how fast you can get the money - it is the approvals and EGMs and the length of time needed versus the speed at which an acquisition window closes.

Overall I think the whole rights issue just showed JL that staying listed is wrong esp with having to answer to multiple parties.

[specuvestor]

I'm not sure of the intent of Warburg AVIC. If they are PE they are looking for exit strategy.

I can guess his female boss might not be so keen on pouring more money in for rights issue

[AQ.]

I'm not sure of the intent of Warburg AVIC. If they are PE they are looking for exit strategy.

I can guess his female boss might not be so keen on pouring more money in for rights issue

i agree - ultimately PE will want to exit.

My guess is that they gear up, grow AUM from 36 to 100b (which JL said was his aim) and then relist somewhere else with better multiples. Afterall it does appear JL prefers his shares to be listed and liquid.

[asphodeli]

I wondered why hardcopy CDP account is necessary especially #1 when many of us are on eStatement and #2 the depostior proxy form send by ARA is a perfectly good proof of your shareholdings in the company.

In any case, I am not sure how useful the session is. I can't help but get the feeling that it's a 'sell koyok' session. 

They're too cheap to pay $ for the share register, or hire Boardroom et. al. to do registrations for them lah 

[asphodeli]

Look at it as a SIAS membership drive.

ex SMRT shareholders have ceased to enjoy free membership since SMRT got delisted. SIAS may have lost some members if they didnt pay from their own pocket, to continue the membership.

I think it's just a minor annoyance of changing membership sponsor to another listco, as long as they are holding any of the associate companies with SIAS (mostly GLC), which most investors would have already, anyway.

[asphodeli]

Look at it as a SIAS membership drive.

ex SMRT shareholders have ceased to enjoy free membership since SMRT got delisted. SIAS may have lost some members if they didnt pay from their own pocket, to continue the membership.

I refuse to join any seminar or talk organise by SIAS.
The reason is that SIAS demand that I must submit our NRIC number for registration. Failing which, I will not be allow to enter the room.
I question why NRIC is necessary... that said it is their SOP. Damn.

There are other ways, like sending tickets (costs!) or using apps, but as most people are of the retirement age for these seminars, it's very likely they will forget to bring the ticket or don't know how to use the app. Thus, the only reliable fallback is NRIC.

[Contrarian]

https://www.bloomberg.com/news/articles/...nce-crisis

The man who says ARA Shares very cheap. I counted, Charter Hall Market Cap to AUM Ratio 11.7% (2.2bn/19bn), 360 Capital Group 14.5%. Kenedix i counted only 7.5%

And delisting? 5% Market Cap to AUM!!!

ARA on Acquisition Hunt Sees Most Deal Activity Since Crisis May 20, 2016, 5:00 AM GMT+8 May 20, 2016, 11:52 AM GMT+8

Lim said his company’s shares are undervalued compared to its earnings, peers and historical prices. The ratio of the company’s market capitalization to its assets under management, a standard measure used by the industry, stands at about 3.8 percent, Lim said. That compares with about 10 percent for peers in the region, he said, implying that there is plenty of room for growth.

‘Too Cheap’
The ratio of market capitalization to assets under management at Sydney-based Charter Hall Group is 7.3 percent, while the metric for Tokyo-listed Kenedix Inc. stands at 14.5 percent, according to Bloomberg calculations.

“Compared to our peers, we are too cheap,” Lim said. “My business is getting better and better, stronger and stronger, the recurring income gets more and more. It’s actually undervalued.”

ARA manages 90 properties in the Asia-Pacific region with 47 million square feet including office, retail and logistic assets. Singapore and Hong Kong made up 66 percent of its assets as of March, according to a company presentation. ARA’s revenuerose 10 percent to S$41.4 million in the quarter ended March 31, the company said May 3.

[lonewolf]

The 'FOR' camp won.  Quite overwhelmingly so.

Frankly,  I was a little surprised at the margin. 86% voting in person or proxy voted for the scheme (representing 98.64% of the share value).

[Image: ARA-2017-03-2_zpsjpvejucs.jpg]

[CY09]

Hi lonewolf.

Thanks for the update. I am at reservist and was not able to attend it. Looks like a part of my portfolio is turning into cash, pity the money spinning REIT manager has to be delisted

Vested in ARA