Frasers Property (formerly: Frasers Cpt (FCL))

[Contrarian]

> I guess most institutions are already vested or not considering fcl yet. Price mostly locked in.

Most funds will be comfortable only when the controlling shareholder has a reduced stake and there is more liquidity.

[specuvestor]

No prices for guessing what is Chaoren's inflow from FCL dividend, even when FCL is practically leveraged up if we see the perpetual as debt rather than equity... net net he pays S$100m+ for the perpetual

IMHO he is an opportunist... and a very good one at that... I give him credit for that. Like I said many times, he and Lippo are not exactly early to the game, but unlike Second Chance, their ability to flip at lightning speed and use the ATM is remarkable. I haven't seen such interesting coporate restructuring since Natsteel.

Same thing is going to happen to Australand I think... more restructuring rather a traditional business per se from Chaoren's point of view. It is up to us how to position together along with the tide rather than love the tide.

Nov. 13 (Bloomberg) -- Co. may look to sell some commercial
properties of AustraLand to its REITs, CEO Lim Ee Seng says in
briefing.
* Frasers Commercial Trust has first right of refusal for
assets
* Possibility of 4th REIT in industrial space

Australand has a landbank > 6 yrs if I am right. To acquire in a bullish market? And after buying Australand they are scouting for acquisitions in China?

Indeed the appetite of an elephant... I hope they can guard their own back-side as much as grow the upside.

[greengiraffe]

> I guess most institutions are already vested or not considering fcl yet. Price mostly locked in.

Most funds will be comfortable only when the controlling shareholder has a reduced stake and there is more liquidity.

Patient buddy, Godfather Charoen has not yielded to the pressure of diluting his stake in both F&N and FCL so no worries.

When trading liquidity of the shares increases, it will be a function of continued improvement in fundamentals resulting in increased demand for the shares.

Nothing fanciful but just plain good acument in businesses and hard work. We don't see rara shows and don't ever need them.

The real Godfathers are none other than Dr Wee, Mr Chaoren, Mr FF Wong, Mr CK Ow and our comrades in CMP.

Vested, Proud, HU8TPPY
GG

[Contrarian]

At the EGM, Charoen son in law was seated next to him. His own son was seated at the corner.

This son-in-law is probably the key deal structuring and deal assessor person.

Surprisingly, he got to have a translator translating simultaneous translation when the shareholders were asking questions.

[I_love_girls]

Chaoren only speaks Teochew and Thai. Wow! Knowing these two languages makes him a billionaire! That is cool!

[greengiraffe]

Chotipat Bijananda, 'the in-house investment banker' of Thai conglomerate TCC

At the EGM, Charoen son in law was seated next to him. His own son was seated at the corner.

This son-in-law is probably the key deal structuring and deal assessor person.

Surprisingly, he got to have a translator translating simultaneous translation when the shareholders were asking questions.

PUBLISHED APRIL 22, 2014
ASIAN LEADERS
Making all the right deals
Chotipat Bijananda, 'the in-house investment banker' of Thai conglomerate TCC, is helping the group to become a global player, reports FRANCIS KAN
PRINT |EMAIL THIS ARTICLE

'As the person running the Family Office, I have to make sure that the family does not invest in any asset that is high risk. We make sure that we understand the business we are in.'
- Chotipat Bijananda, adviser to the TCC Group
- ARTHUR LEE
WHEN Chotipat Bijananda was newly married to the daughter of Charoen Sirivadhanabhakdi, the founder of the Thai conglomerate TCC Group and one of Thailand's richest man, he was approached by his father-in-law to join the family business.
The patriarch was looking to tap his new son-in-law's extensive deal-making experience as a former senior banker with Deutsche Bank and JPMorgan to help grow the business - a sprawling collection of enterprises in the beverages, property, financial services, consumer goods and agricultural sectors. At the centre of this empire is Singapore-listed Thai Beverage, a maker of beer and spirits that include the best-selling Chang Beer.
Mr Chotipat was not quite ready to give up his banking career, but naturally found it difficult to resist the advances of one of the country's most high-profile entrepreneurs, and someone he looked up to personally. His resistance wasn't helped by the fact that he lived in the same building as Mr Charoen and his other children, who all play key roles within the group.
"He kept coming to my floor every day to change my mind. When I was in banking I had freedom, and when you join the family business, you can't resign. You can't even retire," he said with a laugh.
In a sign of how busy things have gotten for Mr Chotipat since he joined TCC some eight years ago, the 51-year-old spoke to The Business Times for this interview at a Changi Airport lounge barely an hour before he was due to board a flight back to Bangkok. And it wasn't his last appointment before takeoff.
What eventually won him over was the chance to work with 69-year-old Mr Charoen, one of the region's shrewdest and most successful businessman, whose rags to richest tale has inspired a generation of Asian entrepreneurs.
"He has been working for himself since he was seven years old, so I've learnt a lot about business from him, like how he protects himself from risk. His concept is to begin with the worst situation," he explained.
He added: "I work closely with the chairman to formulate a strategy to make sure that we make a move in the right direction to make it a success."
He holds the title of adviser to the TCC Group - although he more accurately describes his role as being the company's in-house investment banker, evaluating and working on M&A deals to help the group realise its long-term goal of building a global enterprise. As president of the Southeast Group Co, he also runs the insurance arm of the group, and sits on the boards of various operating subsidiaries.
In a more personal role, he has been entrusted with managing the family's private fortune as head of its Family Office - a private investment platform to manage its considerable wealth.
More recently, he joined the board of Singapore's Fraser & Neave (F&N), which TCC acquired last year after a high-profile tussle for control. Mr Chotipat played a key role in negotiating the deal, which he refers to as the "Singapore transaction".
"We didn't think that the (Lee family) would sell the shares. They had owned it for many years. This is a very old company in Singapore, and it was not a deal that was easy to conclude," he revealed.
He attributes their success in snagging the iconic Singapore firm to "chemistry between buyer and seller". The acquisition also signalled TCC's intention to transform itself into a regional powerhouse by capitalising on synergies between the two groups, as well as the integration of South-east Asia's economies. F&N, which recently celebrated its 130th anniversary, is a regional player in the food and beverage, property, and publishing and printing industries.
After joining TCC, Mr Chotipat has had to adopt a much longer-term outlook when evaluating deals compared to his banking days.
"As a banker you think about the transaction to help the client be successful. But as now I represent the owner of the business, I have to think about value creation in the long term. Any deal I do I have to think about it in the long term. I have to change my mindset to that of an entrepreneur," he explained.
That also means taking a more conservative approach when investing, whether for TCC businesses or the Family Office. He evaluates an investment's risk by first determining the worst case scenario if it were to go sour, and then assessing the quality of the asset.
"I want to make sure the investment is in the right direction, that it is safe. As the person running the Family Office, I have to make sure that the family does not invest in any asset that is high risk. We make sure that we understand the business we are in," he said.
As for Thailand's current political woes and the risks they pose, he believes that the nature of TCC's businesses shields them from the uncertainty to a certain extent. While there has been some impact on the group's consumer and insurance segments - although the market penetration of the latter in Thailand is still low - the core beverage business has weathered the storm very well.
"The economic impact is mainly on the hotel and tourism business, but in the beverage business when people are happy they drink, when they are sad they also drink," he said.
But looking ahead, TCC has plans that stretch far beyond its home market of Thailand. Its strategy following the Singapore acquisition is focused single-mindedly on diversifying abroad.
"We are aiming for international markets, and to diversify more into Europe and the US and Asia. I believe that in some European countries there is a good opportunity to go in at a reasonable price. We want to be a global player," he said.
Such lofty ambitions might justify his heightened workload following his departure from banking and his subsequent entry into TCC. And even if he did want to take a break from work, it's unlikely that Mr Chotipat's illustrious father-in-law would let him.
"I mentioned to him that at 60 I wanted to retire, but he told me he is 70 and still working. The work-load is a lot. When I was working with the bank, I used to play golf every week. Now with the family, I play maybe every quarter," he said, chuckling.

[greengiraffe]

This is a fresh coverage as far as GG is concern...

FCL, BOA ML maintain BUY:

Results above, with dividend surprise; Maintain Buy
FY14E core NPAT of S$544m (+28% yoy) was above expectations, beating our and
the consensus estimates by 13%. The beat was driven by stronger presales
recognitions in Australia. NAV per share rose by 5% yoy, to S$2.23, with headline
ROE up 70bps yoy, to 8.4% (core at 7.7%). These, coupled with a dividend surprise
of 8.6ct, for an attractive 5.4% yield, round up a strong set of results. We maintain
our Buy call on FCL. We will provide more updates after the earnings briefing.
Firm across most segments
Development revenues rose 33% yoy in FY14, driven by stronger overseas projects
that accounted for 61% of FCL’s total development revenues. Project completions in
Australia (3 projects at Central Park Sydney / 98-99% sold) and China (Baitang One
Ph1A-2A) underpinned a 31% yoy increase in development PBIT. PBIT from
investment properties rose 8% yoy, driven by higher rents at One@Changi City and
across most of its existing portfolio, which is at near full occupancy. Hospitality PBIT
declined 3% yoy on increased room supply and competition in the sector.
Unrecognized presales at S$2.2bn
Unrecognized presales as at FY14 stood at S$2.2bn, which we estimate will
underpin FCL’s FY15-16E revenues. Singapore, Australia and China account for
S$1.7bn, S$0.4bn and S$0.1bn of the total amount, respectively. Net gearing as at
FY14 remains high, at 0.95x, but should come off naturally in FY15-16E, as more
presales are booked and contributions from ALZ kick in.
Estimates adjustments
We roll over our estimates to FY17E and adjust our FY15-16E core EPS by +5%/-
10%, on adjustments to our sales recognition assumptions. We also lower our PO to
factor in the higher dividend payout, changes in AUD and our new valuation for
FCT.

[I_love_girls]

Want more liquidity, cash is still the king! Btw, another company who has the same situation as Fraser is Yanlord. The boss holds the majority of shares also and the share price is way below NAV also. Perhaps this is the situation that will surface given majority shares held by the bosses.

[greengiraffe]

Roadside sources:

FCL has a well attended analysts briefing today. Given the high level of transparency, there is little fresh updates apart from what was being revealed.

On the sidelines, CF people are keenly awaiting to structure deals with Godfather to improve FCL's trading liquidity. Well informed road side sources indicated that such deals are unlikely to materialise until FCL share price goes comfortably above its all-time trading high.

If roadside sources are accurate, then I think FCL management will have its jobs cut out for an eventual dilution by Godfather Charoen and his related companies.

However, given his actions thus far... still evaluating UE and having taken up 50% of FCL perpetuals, it does not appear that he is under any urgency to raise cash unlike many skeptics that are keen to see otherwise.

Vested
Core
GG

[greengiraffe]

Fast hand fast leg...

Frasers Centrepoint to spin off Australand industrial assets
THE AUSTRALIAN NOVEMBER 14, 2014 12:00AM

Greg Brown

Property Reporter
Sydney
FRASERS Centrepoint has signalled it may carve off assets from the recently acquired Australand Property Group into its Singapore-based commercial real estate investment trust while spinning off a new industrial fund in that market.

The speedy announcement on the future of the Australian business may surprise analysts as Frasers had not previously indicated its interest in so quickly spinning off parts of Australand’s $3 billion office and industrial portfolio.

Frasers Centrepoint chief executive Lim Ee Seng said at a briefing at the group’s annual results yesterday that the group could shift some of the old Australand properties into its Singapore REIT.

Frasers Commercial Trust, which owns other Australian ­office assets, has first right of refusal over the assets while those deemed non-core may be sold off. He added that the group may spin off the Australand industrial properties into a separate REIT, Bloomberg reported.

Frasers this month appointed former Australand managing director Bob Johnston as the head of its Australian property business replacing Frasers Property Australia chief Guy Pahor.

The changes in the top echelons of Fraser’s Australian arm sparked speculation the Australand business would be broken up, with the possibility its commercial or industrial business would be spun off into a new Australian listed trust.

But at the time of Mr Johnson’s appointment, many analysts doubted whether Frasers had such plans.

Frasers, controlled by Thai ­tycoon Charoen Sirivadhanabhakdi, acquired Australand last month on completion of a $2.6bn takeover.

Frasers outbid local giant Stockland in a takeover battle.

“With Australand, we now have two strong legs in Singapore and Australia, core markets where we have platforms with scale and depth,” Mr Lim said.

“We will continue to grow and strengthen our Singapore and Australia legs, even as we look at opportunities over the medium term to strengthen our third leg of China.”