Mapletree North Asia Commercial Trust

[pianist]

is there an open window time period to apply? seems like weekend, the system doesn't allow?

[pianist]

Gateway Plaza was previously held by another trust, RREEF China Commercial Trust (RREEF), which was later sold to Mapletree India China Fund. RREEF was subsequently delisted from the HK stock exchange since the trust portfolio has no other asset than Gateway Plaza.

Prior to RREEF, the developer of Gateway Plaza, Tin Lik, misrepresented rental incomes and other information to the trustees of RREEF. These discrepancies were later discovered, and the share price of RREEF fell by 44%. It was a fraud case, and Tin Lik paid a sum of HK$287,497,000 to the trustees of RREEF as "compensation".

Tin Lik is now contending that he was coerced into admitting fraud and making the HK$287,497,000 payment to the Trustees in his new lawsuit, which seeks to recover that payment. This is the pending lawsuit which I believe is the one stated in the prospectus. I DO NOT UNDERSTAND WHY THE PROSPECTUS SAY THIS IS AN ALLEGED LOAN.

Quoting from some articles:
"Three years, Gateway Plaza's occupancy rate has been declining: in 2007 where the occupancy rate of 96%, 88.6% in 2008, dropped to 76.5% in 2009; At the same time, its net property income from 2008 202 million in 2009 down to 1.80 billion yuan."

"There was also a guarantee of billboard rental income of RMB35 million for the first year, 38 million for the second year, and 40 million for the third year, but the tenant defaulted. "

"The Government of Singapore Investment Corp (GIC) was also a major investor in RREEF trust's $288 million IPO."


The International Appraiser: Objective valuation advice on international commercial real estate: The Beijing Gateway Plaza fraud controversy

Sale of Gateway Plaza RREEF Real Estate Fund, the first exit into REITs - ventureData.org

Rare property trust digs out of China fraud mess | Reuters""

[BeDisciplined]

Hi KopiKat, you actually prefer A-HTrust...its IPO subscription was not strong. Also, critics were saying that its properties were all overseas and subject to currency risks. At IPO, its 2 PRC hotels title deeds were still WIP, right? Care to share why you prefer A-HTrust to Mapletree Greater China Reits? Thanks

[KopiKat]

Hi KopiKat, you actually prefer A-HTrust...its IPO subscription was not strong. Also, critics were saying that its properties were all overseas and subject to currency risks. At IPO, its 2 PRC hotels title deeds were still WIP, right? Care to share why you prefer A-HTrust to Mapletree Greater China Reits? Thanks

In my previous posts, I was saying I have a fear / phobia of highly geared REITs due to my being badly burnt during AFC on many REITs having Gearing > 40%. So, even tho' there seems to be a very high chance of making $$ for stagging MGCT, I'm going to give it a miss. I have also provided some additional Maths (my own) on why the Rewards is not that great to me. In summary, the Risk-Reward is not attractive enough to me to want to tikam..

I have also previously posted that comparing MGCT & A-HTrust / FE-HTrust (the 2 most recent REITs to IPO) would not yield any useful conclusion as there're too many dis-similarities in Assets, Countries, Gearing, Yield,.... Further, note that the China assets of A-HTrust only constitutes a small % of assets. Refer to the latest results Presentation,

Pg 13 : China Assets = 9%
Pg 12 : China NPI = 4%

Ok, perhaps to answer why I appplied for A-HTrust IPO (I was ok to hold for longer term, in case my short term tikam goes wrong - which it did),

- Majority of assets in Australia (67% by Valuation) ; A$ is one of the few currency that'd not weakened substantially against S$ over the past couple of years
- High Yield ~7.7% vs Gearing 34.3% (currently 35.8%)
- Low Occupancy 70% to 80% + ; I see this as further room for higher earnings if they can improve on the Occupancy (after AEI)

Pls take note that in my case, I'll likely divest my REITs if Gearing vs Yield rewards are no longer attractive to me... plus any other factors that may cause me to lose sleep...

[Muck]

In addition, A-Htrust has less concentration risk than MGCR's two properties, and many of its properties are freehold, whilst MGCR's leases would be up in about 40+ years.

[pianist]

anyone already applied or gg to?

[pianist]

is the result out?

[hongonn]

Never underestimate the number of rich people in Singapore.

Mapletree's China-focused REIT IPO nearly 30 times subscribed

SINGAPORE: The initial public offering of Singapore's largest real estate investment trust has been fully snapped up.

Units of Mapletree Greater China Commercial Trust is nearly 30 times subscribed at the close of the public offer.

The Reit offered a total of about 776.6 million units at 93 cents each, raising some S$1.7 billion.

There was strong demand for both the placement and public tranches.

And even the 50.3 million reserve units offered were over-subscribed.

The Reit will make its trading debut in the Singapore Exchange on Thursday.

[Musicwhiz]

30 times subscribed, but by institutions or individuals?

There are usually two tranches, and the balloting results should show the subscription ratio for each tranche.

I guess in this era of low rates, people will bite at anything.

[RBM]

Hello MW,

As regards the "Placement Tranche", my obviously pathetic application got zero application - my bank advised that I wouldn't get anything unless I applied for at least 3,000,000 (three million) units ........... and even then I would be lucky to get 50,000 shares. I know others were treated similarly (ref some earlier postings on this thread). I do not believe the balloting results of the Placement Tranche will be published.

I do not understand the fever to get into this 40-50% geared REIT. There again I am told I'm too pessimistic.

Not vested

30 times subscribed, but by institutions or individuals?

There are usually two tranches, and the balloting results should show the subscription ratio for each tranche.

I guess in this era of low rates, people will bite at anything.