ARA Asset Management

[Nick]

Expansion to Malaysia ?

http://info.sgx.com/webcoranncatth.nsf/V...F00370CEF/$file/ARA-IncorpSubsi-130412.pdf?openelement

(vested)

[Salty]

I have the same thoughts as well.

Why do they use suntec malaysia instead of ARA?
Does that mean it is suntec that is expanding into malaysia?

[Contrarian]

I have the same thoughts as well.

Why do they use suntec malaysia instead of ARA?
Does that mean it is suntec that is expanding into malaysia?

Of course YES

[Salty]

(BTM) Cache Reit to buy warehouse for $66m

+------------------------------------------------------------------------------+

Cache Reit to buy warehouse for $66m
2012-05-08 00:30:47.381 GMT


By Felda Chay
May 8 (Business Times) -- CACHE Logistics Trust is making
its biggest buy to date in the form of a ramp-up logistics
warehouse facility, for which it will shell out $66 million.
The real estate investment trust's manager, ARA-CWT Trust
Management, said yesterday that Cache will purchase the Pandan
Road located Pandan Logistics Hub from CWT Ltd under a sale and
leaseback arrangement. CWT is a controlling shareholder of
ARA-CWT - a joint-venture Reit management company between ARA
Asset Management and CWT.
ARA-CWT said that the purchase was made at an arm's length,
willing-buyer and willing-seller basis. The property is the
second acquisition that Cache has made to date under the Rights
of First Refusal (ROFR) arrangement with CWT as its sponsor.
Among the reasons that led to the purchase is the net
property income yield of 7.6 per cent for Pandan Logistics Hub,
said ARA-CWT. The acquisition also allows Cache to increase its
market share of ramp-up warehouses in Singapore to 22.9 per cent
from 21.2 per cent.
The lease agreements signed with CWT will also "provide an
average contracted lease term of 4.3 years, with locked-in annual
rental escalation and terms of a typical triple net lease for
three years", said ARA-CWT.
"The unitholders will benefit from the high occupancy rate
and Pandan Logistics Hub brings Cache's total assets under
management to $944 million," it added. The building is currently
fully occupied by end-users who have entered into service
agreements with CWT.
The acquisition of Pandan Logistics Hub will also raise
Cache's assets under management by 7.5 per cent to $944 million
(based on valuations of the Cache's existing portfolio of
properties as at end last year).
"The Manager believes that the increased portfolio size will
create a stronger platform for further acquisition growth due
primarily to better access to both the capital markets and the
debt markets," said ARA-CWT in a statement.
ARA-CWT intends to finance the buy by drawing down on debt
facilities. A circular on the purchase is expected to be issued
to unitholders "in due course, together with a notice of
extraordinary general meeting of unitholders, for the purpose of
seeking the approval for the transactions", said ARA-CWT.
Pandan Logistics Hub is a new five-storey fully ramp-up
warehouse with a gross floor area of 329,109 square feet. It sits
on a land area of 133,680 sq ft with a land lease tenure of 30
years that began in October 2009. The facility received its
temporary occupation permit in October last year.
In March, property valuer CKS Property Consultants said that
the "open market value" of Pandan Logistics Hub was $66.5
million. Knight Frank, which also valued the property, said its
"open market value" was $66 million. Both were asked by ARA-CWT
and Cache's trustee, HSBC Institutional Trust Services
(Singapore) Ltd, to value the property.
Yesterday, Cache's units closed 0.5 per cent lower at $1.03.

[Nick]

ARA REPORTS 35% INCREASE IN 1Q2012 NET PROFIT TO S$20.0 MILLION

- Total revenue rose 26% to S$34.3 million
- Recurrent management fees up 5% to S$23.1 million
- EPS increased 35% to 2.60 Singapore cents per share
- Total assets under management of S$20.8 billion

http://info.sgx.com/webcoranncatth.nsf/V...8002F53C1/$file/ARA-1Q2012-PressRelease.pdf?openelement [Press Release]

http://info.sgx.com/webcoranncatth.nsf/V...8002F53C1/$file/ARA-1Q2012-Results.pdf?openelement [SGX Announcement]

http://info.sgx.com/webcoranncatth.nsf/V...8002F53C1/$file/ARA-1Q2012-PresentationSlides.pdf?openelement [PPT Slides]

(Vested)

[Some-one]

I have been thinking of buying into this counter but the PE is pretty high at 17. What do you all think?

[Stocker]

The Chairman of Sabana, Mr. Steven Lim said MAS and SGX is reviewing the rewarding system to the reit managers, should be inline with unitholders , after many complaints from unitholders of Kreit and many other reits. So not too sure how this will impact ARA as reit manager down the road.

[Salty]

ARA Asset Seeks To Raise S$700 Million-S$800 Million In Singapore Yuan-REIT IPO - Sources
Published May 15, 2012
Dow Jones Newswires

SINGAPORE – Real-estate fund manager ARA Asset Management Ltd. (D1R.SG), an affiliate of Hong Kong tycoon Li Ka-shing's Cheung Kong (Holdings) Ltd. (0001.HK), is planning to raise between S$700 million and S$800 million (US$557 million and US$636 million) by listing some of its Asian assets in yuan-denominated initial public offering in Singapore, people familiar with the situation said Tuesday, the first outside Hong Kong or China.

ARA expects to get listing approval from the Singapore Exchange either this week or next week, and hopes to complete the listing by the end of June or in early July, one of the people said. The company has started meeting potential cornerstone investors for the IPO, the person added. Cornerstone investors subscribe to a fixed portion of the IPO ahead of the public offer to retail and institutional investors, but in Singapore they aren't necessarily committed to hold their stakes for a certain period of time, unlike in Hong Kong.

Singapore-listed ARA--which manages private funds and real-estate investment trusts in China, Singapore, and Hong Kong with portfolios in residential and commercial segments--said in March that it was considering listing a yuan-denominated REIT with assets located in China, but didn't give further details.

A senior ARA official told Dow Jones Newswires that the company is considering listing REITs with assets from its flagship private real-estate fund, Asia Dragon Fund I, but declined to elaborate.

ARA is in the process of divesting assets from its Asia Dragon Fund I, which was closed in 2008 with US$1.1 billion in committed capital and holds residential, office and retail properties in China, Singapore, Hong Kong and Malaysia.

DBS Group, Standard Chartered and Macquarie are advising ARA on the deal.

ARA's plans for a yuan-denominated IPO in Singapore comes as the island nation positions itself as an alternative destination to Hong Kong in the offshore yuan market, which has been growing as Beijing internationalizes its currency.

If it goes ahead, ARA's yuan IPO will only be the second denominated in the Chinese currency outside mainland China. Li, one of the richest men in Asia, held the only other yuan-denominated IPO outside China last year in Hong Kong--the US$1.6 billion IPO of Hui Xian REIT (87001.HK)--which has stakes in Beijing office properties and is also managed by ARA.

Getting a yuan IPO done in Singapore will be a challenge, however, given that its pool of yuan is much smaller than Hong Kong's, which has a thriving market in yuan-denominated debt securities, dubbed dim sum bonds.

At the end of January, yuan deposits in Hong Kong totaled CNY576 billion, according to the Hong Kong Monetary Authority, jumping fivefold from July 2010, when Chinese authorities relaxed key rules for yuan's circulation in Hong Kong. According to analysts at Deutsche Bank AG, Singapore has between CNY40 billion and CNY50 billion in bank deposits.

ARA's IPO plans also come amid renewed volatility across global markets, which have been roiled by fresh worries over the euro-zone debt crisis. Singapore's benchmark Straits Times Index has dropped 3.7% in May so far, bringing it about 5.5% off its 2012 peak, reached in March.

The ARA IPO comes as private equity firm CVC Capital Partners Ltd. meets possible cornerstone investors ahead of its plans to launch a more-than US$2.5 billion IPO for its Formula One Group motorsport franchise before a mid-June Singapore listing, people familiar with the situation said earlier this month. In Malaysia, state-backed Felda Global Ventures Holdings Bhd. is planning to raise as much as US$3.31 billion in what could be the world's second-largest IPO so far this year, after U.S. social network Facebook Inc.'s planned float that could raise over US$12 billion.

Copyright © 2012 Dow Jones Newswires

[peterlynch]

How will the listing impact current Ara SHAREHOLDERS?

[Nick]

How will the listing impact current Ara SHAREHOLDERS?

Assuming there is an IPO, ARA shareholders will benefit from an increase in recurring management fees from the newly listed REIT and one-time performance fees from ADF if the divestments clears the various target hurdles.