Frasers Property (formerly: Frasers Cpt (FCL))

[greengiraffe]

http://www.valuebuddies.com/thread-5485-...#pid119793

Seems like Towkay's view is right especially on the mothership. As for FHT, its portfolio down under should rightly benefit...

[greengiraffe]

http://www.valuebuddies.com/thread-141-p...#pid119842

Ind prop 7.86% vs AREIT's 6% after costs... so much yield compression hidden within FCL's coveted ALZ purchase.
The real $ lies in FCL not AREIT:

FCL3Q Australand update:


Portfolio valued at S$2.8 billion1
‒Industrial: S$1.5 billion1
‒Office: S$1.3 billion1
Portfolio occupancy (by income) of 95.6%
‒Industrial: 96.2%
‒Office: 94.8%
Portfolio weighted average capitalisation rate of 7.49%
‒Industrial: 7.86%
‒Office: 7.08%
Strong tenant profile
‒51% multinational companies
‒29% ASX listed
‒6% government



The history of the JV with GSIC is as follows:

d) Material joint venture arrangements

The Australand Property Group is party to the Australand Logistics Joint Venture (ALJV) with the Government of

Singapore Investment Corporation. The ALJV holds industrial properties and as at 31 December 2013 had assets
of $375 million. The Australand Property Group holds a 19.9% interest in the ALJV.

The ALJV arrangements and ART Agreement include change of control provisions that may be triggered as a

consequence of the Offer. If the Offer becomes unconditional and the Bidder and its Associates become the

holder of more than 50% of all Australand Securities, that will constitute a change of control for this purpose. If a

change of control occurs without the consent of the co-venturer, the co-venturer may:
(i) in respect of the ALJV:

 buy-out (or elect that its nominee will buy-out) the Australand Property Group’s interest in the

joint venture for market value (less transaction costs); or
 require an orderly wind down of the joint venture; and

So The JV was formed between ALZ and GSIC during the Capland ownership days and FCL owns 19.9% of the JV with a last reported assets worth $375m that has been transacted at around $1bn... 

I think the $375m should likely be a net of debt figure and hence the impact on FCL's bottomline is a lot less.

Anyway, A REITs purchase serves to remind many that FCL's purchase of ALZ has a lot of hidden potential and will sustain FCL's growth path amidst a highly challenging domestic mkt for a long time coming...

[Contrarian]

> Ind prop 7.86% vs AREIT's 6% after costs... so much yield compression hidden within FCL's coveted ALZ purchase.

Guru GG, so FCL industrial assets is of value A$375M, that's the value in the $1bn sold to Ascendas?

So with a cap rate of 6%... that means $490M sold to Ascendas, and that is triggered by a buy-out clause, no choice but to sell, is that correct?

[greengiraffe]

> Ind prop 7.86% vs AREIT's 6% after costs... so much yield compression hidden within FCL's coveted ALZ purchase.

Guru GG, so FCL industrial assets is of value A$375M, that's the value in the $1bn sold to Ascendas?

So with a cap rate of 6%... that means $490M sold to Ascendas, and that is triggered by a buy-out clause, no choice but to sell, is that correct?

I oso v blur even with the details in the takeover circular... all i know is that ALJV has been reportedly sold for A$1.073bn... will appreciate if anyone can sort it out for me:

d) Material joint venture arrangements

The Australand Property Group is party to the Australand Logistics Joint Venture (ALJV) with the Government of

Singapore Investment Corporation. The ALJV holds industrial properties and as at 31 December 2013 had assets
of $375 million. The Australand Property Group holds a 19.9% interest in the ALJV.

The ALJV arrangements and ART Agreement include change of control provisions that may be triggered as a


consequence of the Offer. If the Offer becomes unconditional and the Bidder and its Associates become the



holder of more than 50% of all Australand Securities, that will constitute a change of control for this purpose. If a



change of control occurs without the consent of the co-venturer, the co-venturer may:

(i) in respect of the ALJV:



 buy-out (or elect that its nominee will buy-out) the Australand Property Group’s interest in the


joint venture for market value (less transaction costs); or
 require an orderly wind down of the joint venture; and

[Contrarian]

> Even if FCL is forced to sell, this return due to yield compression is very good deal for FCL.

[CY09]

http://infopub.sgx.com/FileOpen/06_FCL_S...eID=370189

GG: The announcement today clears it. Book value of its 19.9% stake is s$90m, but will be sold for s$112M to ascendas

[greengiraffe]

http://infopub.sgx.com/FileOpen/06_FCL_S...eID=370189

GG: The announcement today clears it. Book value of its 19.9% stake is s$90m, but will be sold for s$112M to ascendas

Thanks buddy... the JV only sold 14 assets out of the total 26 to AREIT

The implications are wider and far reaching not only for FCL but the entire ind prop sector Down Under and of course there would be a good benchmark should FCL decides to list the unit individually either on ASX or SGX...

http://www.frasersproperty.com.au/Our-Pr...Industrial

EXPLORE OUR INDUSTRIAL PROPERTIES.

More than 3,000,000 sqm of warehouse space and developable land.

Frasers Property is a leader in industrial property development and management in Australia. We develop over 400,000 sqm of industrial space annually and maintain an industrial investment property portfolio in excess of $1 billion.

Much of our success is due to our ability to provide complete development and management solutions from design to occupation, utilising in-house design, construction, legal and property management services, and to our commitment to deliver a great result every time.

Explore the user friendly website:

The unit currently has the following number of ind prop in:

NSW 16, VIC 27, QLD 16, SA 7 and WA 1

Of which the following units for for sale/lease:

NSW 3, VIC 4, QLD 6, SA 3.

This is not counting the landbank for the C&I unit...

How to value this unit?

Gong Gong

[Contrarian]

What it means is that FCL's industrial reit has good chance to list at NPI of 6%.

> Book value of its 19.9% stake is s$90m
> FPA’s share of the carrying value of the JV Australian Logistics Portfolio is approximately S$90 million.

Does this mean FCL's cost is $90M or the carrying value is revalued upwards to $90M.

[greengiraffe]

What it means is that FCL's industrial reit has good chance to list at NPI of 6%.

> Book value of its 19.9% stake is s$90m
>  FPA’s share of the carrying value of the JV Australian Logistics Portfolio is approximately S$90 million.

Does this mean FCL's cost is $90M or the carrying value is revalued upwards to $90M.

Yo Brother,

The cost being booked for the 14 assets that is 19.9% owned by FCL is 90m and is sold for 112m.

i think now a mid 6% listing on SGX looks highly possible especially in the light of the substantially larger portfolio and future pipeline.

On ASX the passing yield could be higher than 7% but the Australand brand name sells better down under.

Whatever it is, the hidden value of this division when unlocked will be substantial not to mention the recurrent fee income to be generated under such structure.

It also begs the same question what is happening to Singapore Inc - Capland sold ALZ below A$3.80 only to see Stockland making sizable paper gains bowing out to FCL 9 months later and then now almost a year later AREIT is buying part of that portfolio at an incredible yield of low 6% from GSIC/ALZ jv and GSIC...

Should anyone in the right frame of mind be buying a fun manager REIT or a risk taking Towkay mother ship that stands ready to reap hidden capital gains from a well managed platform and portfolio that was painstakingly build up since 2000 through GFC.

How to trust GLCs and GLC linked management?

Better to place our blind faith in big Towkay like Charoen?

GongGong

[Contrarian]

> How to trust GLCs and GLC linked management?

Ascendas REIT got to expand assets so the mother can increase AUM :-)