Capitaland Investment

[momoeagle]

Mr Market did offer it at a low price of $1.20 to $1.80 before.

[greengiraffe]

Still can't understand why Capland in such a haste to offload long term investment Australand... Within a month, there is an increase in payout flagged by Australand and now a offer that is being rejected but already 10% higher...

Stockland tables bid for Australand

JOHN DURIE AND ELIZABETH REDMAN THE AUSTRALIAN APRIL 23, 2014 11:13AM

PROPERTY group Stockland has lodged a formal proposal to buy developer Australand but the target’s board has rejected the offer.

The bid had a consideration of 1.111 Stockland shares for every Australand share andimplied an offer price of $4.20 per Australand security.

Australand said the bid did not provide sufficient consideration to shareholders in the context of a change of control.

The offer is a 1.9 per cent discount to Australand’s closing price of $4.28 on April 22 and a 0.4 per cent discount to the target’s volume weighted average price since it announced an operational earnings upgrade on March 25.

Last month, Stockland bought a $435.3 million strategic stake of 19.9 per cent in Australand at an average price of $3.78 per share.

At 10.56am (AEST) Australand shares were unchanged at $4.28 against a rising broader market.

Stockland acquired a 20 per cent stake in Australand last month for $3.78 a share as part of Singapore-based CapitaLand’s sale of its 39 per cent investment in the $2.3 billion company.

Analysts had forecast a bid of between $3.98 and $4.10 a share for the company.

Stockland boss Mark Steinert said at the time he would take his time to make a bid but has waited just a few weeks.

Australand had appointed Fort Street and Macquarie as its advisers.

The Stockland proposal was handed to Australand chair Paul Isherwood last night.

[greengiraffe]

Restructuring welcome but shareholders fret over lack of clarity
Published on Apr 26, 2014 1:11 AM



By Cheryl Ong

INVESTORS generally support CapitaLand's move to simplify its organisational structure but some worry it will only make the property behemoth even more opaque.

Shareholders at the firm's annual general meeting (AGM) said yesterday that CapitaLand's bid to take over its listed shopping mall unit CapitaMalls Asia (CMA) would make it harder to get a handle on the group's operations.

One shareholder said having CMA as a separate entity allows them to attend results briefings or AGMs to understand the firm's strategy. "But once you take it off, we don't know what's happening. I hardly know what's happening at the Ascott level, I don't really know what's happening at the CapitaLand China level. So to me, I'm buying something where I'm ill-informed and my comfort level becomes low because of that."

CapitaLand, which owns 65.3 per cent of CMA, announced its offer of $2.22 apiece for all the shares it does not own in the shopping mall firm last week, with the aim of delisting it.

In response, CapitaLand chairman Ng Kee Choe said it discloses information shareholders should know "on a timely basis".

Still, the shareholder supports the overall plan: "I'm very much in agreement with management in restructuring the company."

Under its current structure, CapitaLand's businesses in Singapore are consolidated under CapitaLand Singapore while its operations in China fall under CapitaLand China. Its serviced apartment business The Ascott and CMA operate across all markets.

If CMA is successfully delisted, the number of listed entities in the CapitaLand group will be cut from eight to six, while development activities will be undertaken by CapitaLand.

Two other shareholders voiced their concerns over CapitaLand's offer price in the takeover, prompting applause. One said: "Your rationale of taking it private is because it has very good growth potential... If it's going to lose money, I don't think you'll want to take it private.

"So be fair to us, pay us something near to Hotel Properties' (HPL) offer, then it will be fair," he said, in reference to tycoon Ong Beng Seng's bid to buy out the listed hotel firm at $3.50 apiece in cash.

Mr Richard Hale, a former independent director at CapitaLand, also attended. He took issue with the firm's 2013 annual report. He noted that the firm had mistakenly classified its operations in Kazakhstan under the Gulf Cooperation Council Countries - instead of Central Asia - and that the firm was not clear on how it had "deepened its expertise across its entire real estate value chain".

CapitaLand group chief executive Lim Ming Yan said: "In all our areas, we have continuously been looking at grooming our internal staff... As they develop more projects, the kind of experience they acquire from developing a project like this would have given them a lot of understanding."

CapitaLand's shares closed three cents lower at $3.24 yesterday.

ocheryl@sph.com.sg

[kayhian]

SINGAPORE — CapitaLand’s wholly-owned unit Ascott yesterday said it had struck a strategic alliance with Beijing Vanke, a wholly-owned subsidiary of Vanke China, to drive its growth in the world’s second-largest economy.

Ascott is already the largest international serviced residence owner-operator in China, with more than 10,800 apartment units across 60 properties in 20 cities.

The latest deal will see Ascott manage two more serviced residences in Beijing: The 157-unit Citadines Daxing Beijing and the 198-unit Somerset Shunyi Beijing. The two properties are scheduled to open in 2017.

“Beijing Vanke will leverage its significant presence and expertise to develop serviced residences in China. Ascott will, in turn, provide its leading capabilities in managing award-winning serviced residences,” Ascott said in a statement yesterday.

Ascott already manages two other developments for Vanke: Ascott Midtown Suzhou, which opened in April, and Somerset Wuxi, which is expected to open next year.

“China remains our key growth market. Ascott will continue to seek opportunities in gateway cities and high-growth cities with strong demand for serviced residences (in China),” said Mr Kevin Goh, managing director for North Asia at Ascott.

[kayhian]

SINGAPORE: Serviced residence operator Ascott has secured its first franchise agreements in Vientiane, Laos, and Bali, Indonesia, the company said on Thursday (June 12).

It will operate a serviced residence in Vientiane, which will be rebranded as a 116-unit Somerset Vientiane, in the fourth quarter of this year, as well as the 194-unit Citadines Kuta Beach Bali that is scheduled to open in August this year, according to its statement.

Ascott CEO Lee Chee Koon said franchising will be a key growth driver for the company. “Together with investments, management contracts and strategic alliances, franchise will bring us closer to achieving our target of 40,000 apartment units globally by 2015,” he said.

Ascott awarded the Somerset Vientiane franchise to a subsidiary of LCD Global Investments, a Singapore-listed real estate and hospitality group. Ascott will manage the serviced residence for two years before transitioning to a franchise arrangement, according to the statement.

The franchise for Citadines Kuta Beach Bali was awarded to PT Menara Permata Propertindo, it added.

- CNA/cy

[MINX]

SINGAPORE: Serviced residence operator Ascott has secured its first franchise agreements in Vientiane, Laos, and Bali, Indonesia, the company said on Thursday (June 12).

It will operate a serviced residence in Vientiane, which will be rebranded as a 116-unit Somerset Vientiane, in the fourth quarter of this year, as well as the 194-unit Citadines Kuta Beach Bali that is scheduled to open in August this year, according to its statement.

Ascott CEO Lee Chee Koon said franchising will be a key growth driver for the company. “Together with investments, management contracts and strategic alliances, franchise will bring us closer to achieving our target of 40,000 apartment units globally by 2015,” he said.

Ascott awarded the Somerset Vientiane franchise to a subsidiary of LCD Global Investments, a Singapore-listed real estate and hospitality group. Ascott will manage the serviced residence for two years before transitioning to a franchise arrangement, according to the statement.

The franchise for Citadines Kuta Beach Bali was awarded to PT Menara Permata Propertindo, it added.

- CNA/cy

Sorry, but i'm a little confused by this piece of news. Can anyone be kind enough to explain it to me? I assume Ascott is managing these 2 properties for their owners and in return they earn the management fees. But then why are they engaging a third party to manage it instead, in this case, wouldn't it be easier for the owner to engage the third party directly, sorry but I'm really lost here

[AlphaQuant]

But then why are they engaging a third party to manage it instead, in this case, wouldn't it be easier for the owner to engage the third party directly

The owner can engage the third party directly, but they will not be able to put the brandname Somerset/Citadines/Ascott to their property.

Essentially what CL is selling is the right to use their brandname (and along with that expectations of certain business operations/operating standards) - perhaps that is why they need 2 yrs to operate the Laotian apartments to standardise things up before handing over to LCD.

There are certain advantages to having a brandname for service apartments since they cater mostly to businessmen/large families - these blokes typically will prefer to have something familiar when they arrive in a new country so they can focus on business proper asap (contrast this to a backpacker/budget traveller's requirement).

[MINX]

But then why are they engaging a third party to manage it instead, in this case, wouldn't it be easier for the owner to engage the third party directly

The owner can engage the third party directly, but they will not be able to put the brandname Somerset/Citadines/Ascott to their property.

Essentially what CL is selling is the right to use their brandname (and along with that expectations of certain business operations/operating standards) - perhaps that is why they need 2 yrs to operate the Laotian apartments to standardise things up before handing over to LCD.

There are certain advantages to having a brandname for service apartments since they cater mostly to businessmen/large families - these blokes typically will prefer to have something familiar when they arrive in a new country so they can focus on business proper asap (contrast this to a backpacker/budget traveller's requirement).

I get your drift, but managing serviced residences is supposed to be Ascott's forte, so why the need to engage a third party to run it after 2 years, this will incur additional costs and erode margin of their business, no?

[thor666]

I am guessing because the particular places in question present political and geographical risks. Ascott will still be able to defranchise in the far future.

My guess is that their partners are doing the "hard" work.

Sent from my D5503 using Tapatalk

[em2nre5u]

the news says its a franchise agreement, so obviously capitaland / ascott is not going to manage the buidling itself. So the franchisee (LCD Global) will be operating and pay the franchisor (capitland/ascott) fees.