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19-09-2015, 11:50 PM
(This post was last modified: 20-09-2015, 12:04 AM by CY09.
Edit Reason: Edits
)
I like the answer. IMO, this deal is bad for shareholders of Ascendas and the future "fools" who will be purchasing ascendas perpetual securities to fund this 1 Billion Deal. The winners of this are the REIT managers (GLC companies). I have never been interested in SGX reits because the odds are always stacked in favour of the managers (ironically most of them are GLC companies). You are buying leasehold land which will be zero eventually at end of lease, unlike many other countries who give mostly freehold lands (Australia, Germany, US, Japan). Also many parent companies will just keep spinning property off at the peak of the cycle, making it debt laden (e.g. Keppel REIT).
Back to FCL, I do agree an industrial REIT now will be a good offering. It will be good to list in SGX where their developed industrial assets have advantage over many of the smaller local reits which own leasehold sites while theirs is mainly freehold and with many yield hungry fools who will want to buy properties similar to GLC at high prices. If one is to value Fraser Industrial ppty, the cap rate is 6% to 6.5%. Furthermore, they can sell their developed land bank later to spin into their REITS. I am not optimistic of Australia's Industrial and office sector as they are a subset of Australia's economic performance which is likely to go downhill.
As for the commercial property, FCL should just sell into Fraser Commercial. So if one wishes to value FCL Australia commerical property, it will be down to simple cap rate comparison of the office building vis a vis similar comparable in Australia.
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(19-09-2015, 11:50 PM)CY09 Wrote: Back to FCL, I do agree an industrial REIT now will be a good offering. It will be good to list in SGX where their developed industrial assets have advantage over many of the smaller local reits which own leasehold sites while theirs is mainly freehold and with many yield hungry fools who will want to buy properties similar to GLC at high prices. If one is to value Fraser Industrial ppty, the cap rate is 6% to 6.5%. Furthermore, they can sell their developed land bank later to spin into their REITS. I am not optimistic of Australia's Industrial and office sector as they are a subset of Australia's economic performance which is likely to go downhill.
On the contrary, I m extremely bullish on the outlook for Australia's mfging sector and domestic logistic sector.
The A$ has weakened to a good extend to see its quality agri based and other good quality products witnessing a revival in fortunes.
One should not be confused with the impact of the already bombed out resource sector. At worst low commodity prices will result in resources being buried in the ground and to a larger extend not being explored due to a capital starved mining sector has severely cut capex.
Based on my reading on Australia, I think the lucky country will stay lucky notwithstanding a helpless and hopeless govt both at the Federal and the State levels.
There is a good reason why so many foreign investors have been making a beeline Down Under.
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21-09-2015, 09:26 AM
(This post was last modified: 21-09-2015, 09:28 AM by BlueKelah.)
Agri may boom but ramping up agri is not as easy or quick as ramping up mining. Agri is very dependent on water and weather, aus has a lot of crazy weather and lack of water. Manufacturing there is not much left of the industry after years of neglect and major car manufacturing and associated companies closing soon will put a dent in that.
The only thing carrying aus econ now is contruction and even that is likely to go downhill soon with the likely downturn finally coming for sydney and melb property markets.
All a domino effect from shrinking mining and increasing budget deficits.
sent from my Galaxy Tab S
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(21-09-2015, 09:26 AM)BlueKelah Wrote: Agri may boom but ramping up agri is not as easy or quick as ramping up mining. Agri is very dependent on water and weather, aus has a lot of crazy weather and lack of water. Manufacturing there is not much left of the industry after years of neglect and major car manufacturing and associated companies closing soon will put a dent in that.
The only thing carrying aus econ now is contruction and even that is likely to go downhill soon with the likely downturn finally coming for sydney and melb property markets.
All a domino effect from shrinking mining and increasing budget deficits.
sent from my Galaxy Tab S
Mr Blue, pls continue to sing your blues. Do your own research before you start Ramboing... there are sufficient noise everywhere for you to be more equipped.
The world doesn't need another Pessimists like you.
In the end, human beings are all heading for self destruction... everything is a game.
You tell me what is left in Singapore?
Resources if not explored will continue to be there. Weather is not the same across a big continent let alone the whole world.
I rather be Gong Gong, let the One up there tell me what to do...
GG
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GG san, in a low interest and low currency, do you see many property funds swopping in?
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21-09-2015, 11:36 AM
(This post was last modified: 21-09-2015, 11:43 AM by greengiraffe.)
(21-09-2015, 11:01 AM)Contrarian Wrote: GG san, in a low interest and low currency, do you see many property funds swopping in?
Areit already did even though GSIC is selling... better ask them on their optimism...
So far the newsflow on actual deal front remains largely positive notwithstanding all the doom sayers...
I just repeat the story...
http://www.valuebuddies.com/thread-141-p...#pid119913
DBS says AREIT is a serious contender Down Under with the maiden purchase... so what should we make up for FCL on its purchased track record from an established platform that Capland forsaken?
Gong Gong
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Looks like Ascendas REIT is paying premium price for a quality asset...
Areit is paying a 6.6% premium to the assets’ open-market value.
In return, the acquisition has turned it into the eighth-largest logistics landlord in Australia. We like the portfolio’s freehold
tenures and fixed rent escalations which are higher than the usual 2% in Singapore. What we are less keen on its method of financing.
Had it opted totally for debt funding, we reckon our FY3/17-18 DPU could be 15.4-15.8 cts instead of 15.1-15.5 cts on the 60:40
structure. We do not expect DPU growth in FY3/16 due to SGD 64m in acquisition-related costs. Applying our 7.25% yield target to
Areit’s FY3/17 DPU gives us a new TP of SGD2.08.
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Towkay outbidded by Chinese here...
$30bn ‘China city’ to tap into student boom
EXCLUSIVE: RICK WALLACE VICTORIAN POLITICAL EDITOR
676 words
19 Sep 2015
The Australian
AUSTLN
English
An ambitious $20bn-$30bn Chinese-backed plan for a hi-tech “city” of 80,000 residents in Melbourne’s outer west with a university campus and research centre is just one step away from being approved by the Victorian government.
The project would be one of the largest and most visible Chinese-backed commercial investments in Australia, and would aim to tap into the $700bn a year in research funding spent by China and draw thousands of foreign students here.
The Weekend Australian understands that the so-called Australian Education City concept is one of two proposals left in the race for the redevelopment of a 750ha former state research farm site near Werribee, between Geelong and Melbourne.
With Premier Daniel Andrews about to embark on a trip to China, rumours are swirling that the proposal may soon be approved, although some sources say no decision has been reached and more information is needed from the proponents.
The Chinese entity financing the Australian Education City proposal has not been publicised but the local arm of the venture has recruited high-profile backers and advisers such as former premier John Brumby, who is now president of the Australia-China Business Council.
He is part of an advisory board along with PwC partner James van Smeerdijk and University of Melbourne professor and former Bio21 director Tony Bacic. The group’s executive chairman is Bill Zheng, head of the property, finance and funds management outfit Investors Direct Financial Group.
It is understood the consortium, which will also feature local investors, is planning to construct a railway station to service the city, and the project could include a light rail link through the sprawling site if required.
The consortium, Investors Direct, was one of five bidders for the site, which would be home to 80,000 residents in towers of up to 50 storeys and other dwellings if approved. It is understood the project is aimed at tapping into soaring demand from China for education in Australia and other Western nations, and the proponents say it could generate 100,000 jobs.
It is likely to feature an Australian and a Chinese university, but it is not clear which ones are possible candidates after early links to the University of Melbourne appear to have been severed.
“We will deliver a collaborative university campus with one of Australia’s universities as our lead university, in conjunction with one of China’s top universities and a leading United Kingdom university,’’ the group’s website says.
The consortium’s website says it would also establish research and development facilities, citing discussions with Beijing University and US tech giant Cisco.
Werribee and surrounds are among the fastest growing urban areas in Australian and road and rail links to and from the CBD are under severe pressure.
The consortium aims to address that with its plan for a new station and large underground carpark to allow residents and locals to catch the train to the CBD as required, although the aim of the project is to have both housing, educational institutions and jobs on the one site.
It is believed Investors Direct has plans to pitch the concept to other Australian capitals, but Melbourne is its priority.
It is thought the original field of five bidders has been whittled down to two. Australand, now part of the Singapore-based Frasers group, was a bidder for the big triangular-shaped site comprised largely of dry paddocks and is believed to still be in contention.
Mr Andrews would not comment on the proposal, saying there was still a process to be run, but he has spoken previously about ensuring that property developments had broader aims such as integrating commercial and education aspects.
Planning Minister Richard Wynne’s office declined to comment, saying the minister was not involved in the Metropolitan Planning Authority’s tender process.MPA chief executive Peter Seamer declined to comment on the tender process. Frasers also declined to comment.
News Ltd.
Document AUSTLN0020150918eb9j00043
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http://www.frasersproperty.com.au/nsw/Clemton-Park/
Retailers required
Frasers Property Australia is looking for retailers, cafe operators and restaurateurs to join Coles and Natural Fresh Grocer in the new Clemton Park Village neighbourhood shopping centre to open by early 2017 in the Sydney suburb of Campsie. The centre will be part of a master-planned community including 740 'all-but-sold' apartments along with aged care and childcare centres. But according to retail consultancy Location IQ, the trade area will extend well beyond the development to Canterbury Hospital and, by 2026, over 96,000 people. Frasers general manager, retail, Peri Macdonald, said the project was an opportunity for retailers to "to establish a profitable long-term future".
ROBERT HARLEY
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