ARA Asset Management

[tonylim]

Some selling pressure ?

[mrEngineer]

Although I am not entirely a TA person but if you look at the previous correction that occured around in Oct where prices revert back to 30d MA, it bounced back. This time, if prices cross 1.38 level, it may signal a collapse. If not, we may be expecting a big rebound.

[Stocker]

This one over played due to hype , over shoot its fair value. Many got burned at the final stage of the fenzy buying. Good stock doesn't mean must over pay to buy the stock.

[mrEngineer]

With MBFC Phase 1 deal completed, anyone contemplating about Phase 2? No wonder John Lim is so confident about hitting 25b AUM. lol

[bluesurfer]

i was wondering. since we are talking about ara. ara owns and manage suntecreits right? sorry i am still learning so pardon me. Cos earlier this year, CIty harvest Church(CHC) announced that they are moving into suntec next year. and according to them, they got a substantial amount of share in a consortium that owns suntec convention centre. I wonder if anyone have a clue of which consortium they bought into? My guess is ara.

[lonewolf]

Wrong. ARA manages Suntec REIT and has some units of Suntec REITs but it does not owns Suntec REITs.

The link between CHC and SuntecREIT is often confused because of the name 'Suntec'.

What happens is that ARA Harmony Fund (a unit of ARA) bought over Suntec Singapore International Convention & Exhibition Centre. SuntecREIts own 20% of ARA Harmony Fund. The remaining 80% is own by a consortium company.

It is this consortium company that City Harvest Church buys into. And they pay around $310 million for it and there no mention of how big CHC's stake is. According to one report, CHC says it was a'substantial stake' but in a letter to the media , the board of management of CHC says its 'an indirect minority stake.'

Whatever it is, the consortium company is certainly not ARA.

[gutman]

Just a minor correction to lonewolf's post. ARA Harmony fund acquired Suntec Singapore International Convention & Exhibition Centre for $235 mil , not $310 mil as claimed by CHC. ( http://www.ara-asia.com/Document_Library...nyFund.pdf )

And yes, CHC has a minority stake in that $235 mil. But they informed the public that they had invested 310 mil to take a stake in Suntec Singapore.......wonder why.....

[lonewolf]

Just a minor correction to lonewolf's post. ARA Harmony fund acquired Suntec Singapore International Convention & Exhibition Centre for $235 mil, not $310 mil as claimed by CHC. ( http://www.ara-asia.com/Document_Library...nyFund.pdf )

Pls read my post again. That is certainly not what I said.

And yes, CHC has a minority stake in that $235 mil. But they informed the public that they had invested 310 mil to take a stake in Suntec Singapore.......wonder why.....

As disclosed by the letter to the media (see my link)

CHC reiterates that the sum of $310 million mentioned in the articles is not the value of the building, but rather the sum of various costs to CHC. These costs include rental cost over the licensed period, renovation and equipment costs, rental deposits, periodic shifting costs, etc. and it does not represent solely the cost of the minority stake.

Hope the above is clear enough.

[gutman]

My apology to lonewolf and thanks for the clarification.

Back to ARA, Credit Suisse issued a report on the 8th Dec 2010. See following extracted from The Edge.

"Credit Suisse lifts ARA Asset Management (D1R.SG) target to $1.74 from $1.18 after increasing FY10-FY12 EPS estimates by 10%-25% to account for higher acquisition fees and a larger asset portfolio.

Expects its acquisition of a one-third stake in phase 1 of the Marina Bay Financial Centre by Suntec REIT (T82U.SG), which ARA manages, to boost ARA's assets-under-management by 10% to $16.1 billion by end-2010 and boost its recurring annual fee income by $7.7 million from FY11.

Says ARA will benefit from the upswing in property cycles in the 4 markets it operates in: Singapore, HK, China, Malaysia. Keeps its Outperform call. The stock is +0.7% at $1.45. "

[bluesurfer]

I hope I am not bringing any disharmony to chc or ara or anybody in this forum. I was just wondering the consortium that chc bought into. Is it listed to public or Izit a private equity? Cos I try to do a search but nothing fruitful.