11-11-2015, 12:14 PM (This post was last modified: 11-11-2015, 12:15 PM by letsmakemoney.)
(11-11-2015, 11:33 AM)cyclone Wrote: Ichigo Hotel REIT will list its shares on Tokyo Stock Exchange, scheduled to be on 30 November 2015.
Ichigo sold 9 hotels to Ichigo Hotel REIT for JPY 20.4B, leaves its hotels to 2 units. Now is the right time to replenish stock for future recycling.
Nest Hotel Sapporo Ekimae is sold at JPY 2.16 billion, Nest Hotel Sapporo Odori is sold at JPY 1.45 billion, totalling JPY 3.61 billion.
Thank you for sharing, Cyclone.
I checked further. The 2 Sapporo hotels IPC sold to Ichigo in Dec '14 was for a total consideration of JPY2.69b (approximately S$29.61 million).
Now, Ichigo selling these to the REIT for JPY 3.61b!
Japanese asset prices seem to have boomed the last 11 months.
Seems like the IPC board made the right decision to call off the 1st deal earlier this year for the 7 hotels, in order to hold out for a higher price now.
I made the a the table as per attached to illustrate that Ichigo indeed gets a good deal and so the high chance for the deal to go through.
Ichigo sold 9 hotels into the Ichigo Japan Reit for 20.41 Billion Yen.
Total no. of room for 7 hotels is 1,257 rooms and only 1 hotel with 130 rooms in 1st-tier city (Osaka).
Ichigo bought 7 hotels from IPC Corp for ONLY 14.9 Billions Yen.
Total No. of rooms for 7 hotels is 1,302 rooms, 3 hotels with total 510 rooms in 1st-tier city (Tokyo & Osaka) and most of them are in quite good locations.
Ichigo can then sell these hotels into Ichigo Hotel Reit in 2 years and easily make 30% profit.
Japan foreign tourist number has grown very quickly (estimate 19 millions this year compared to 13.41 mils last year) and will continue to grow in the next few years the hotel assets will likely to appreciate.
Ichigo (2337) is a Japanese real estate owner/operator and clean energy producer. Its key businesses include managing the Tokyo Stock Exchange-listed J-REITs (Ichigo Office REIT :8975, Ichigo Hotel REIT:3463) and operating solar plants nationwide.
For its Hotel REIT which listed yesterday at 104,000 yen and is now trading at 115,600 yen showing good interest from investors in the REIT given Ichigo good record with its Office REIT listing.
Following the listing, on the same day, Ichigo Hotel reit announced that it took up 8 billions loan from Japan banks and acquisition of 9 hotels from Ichigo at the listing.
Ichigo has a healthy balance sheet for a real estate firm, most of its loan are from big bank with average loan tenure of 8.5 years at average of 1.5 =% interest. It has about 15.6 billions Y cash, plus the cash inflow from the selling of 9 hotels, they should have more than sufficient cash to fund for the purchase of IPC Corp 7 hotels at ONLY 14.9 Billions Yen.
Ichigo expertise is to "enhance/value-add" these hotel assets then sell them into its hotle REITS and its seems already planned for their FY16 shift-up plan
Trading halted again - Pending release of announcements.
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Research, research and research - Please do your own due diligence (DYODD) before you invest - Any reliance on my analysis is SOLELY at your own risk.
Wow. what a hefty payout of S$1.60. Mr Oei gets a home-run. NTA after disposal is S$2.44. Let's see what happens at 2pm after trading halt is lifted... whether Mr Market will finally reward minorities by pushing it well across S$2.00, to be closer to NTA of S$2.44.
(17-12-2015, 01:31 PM)newyorkcityboy Wrote: Wow. what a hefty payout of S$1.60. Mr Oei gets a home-run. NTA after disposal is S$2.44. Let's see what happens at 2pm after trading halt is lifted... whether Mr Market will finally reward minorities by pushing it well across S$2.00, to be closer to NTA of S$2.44.
Come to think of it..... Mr Oei made a GO at $0.17 for all the outstanding shares in April this year.
Those that sold to him must be feeling very sore now....................
There are no good stocks. Stocks are only good when they go up after you bought them.
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