ARA Asset Management

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#31
Oh no.. now we can start to see a string of analyst report downgrades after moody's downgrade of suntec reits. I can already imagine the adjustments made to the cost of debt for all the quants analysis. Look like I won't be able to let go anytime soon...
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#32
How will ARA be impacted by this ? Isn't all of the risk passed to Suntec REIT ? As long as Suntec asset valuation remains stable, ARA income should not be impacted.

(Wished I was vested !)
Disclaimer: Please feel free to correct any error in my post. I am not liable for anything. Do your own research and analysis. I do NOT give buy or sell calls and stock tips. Buy and sell at your risk. I am not a qualified financial adviser so I do not give any advice. The postings reflects my own personal thoughts which may or may not be accurate.
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#33
(15-12-2010, 10:19 PM)Nick Wrote: How will ARA be impacted by this ? Isn't all of the risk passed to Suntec REIT ? As long as Suntec asset valuation remains stable, ARA income should not be impacted.

(Wished I was vested !)

ARA B/S may be slightly impacted due to revalution and dilution of financial assets which may result in reduction in income but very minimally. The more direct impact would be on Suntec REITs itself as the cost of debt is being adjusted.

Qualitatively, ARA may be impacted by its loss in reputation and withdrawal of investment interest which may result in slowdown of financing further acquisitions due the history of bad deal making and moody downgrade.
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#34
Interesting development with mother company Cheung Kong. The REIT industry will be become more interesting in Asia. Great news.

December 22, 2010, 11.40 am (Singapore time)

Cheung Kong chairman plans HK's 1st yuan IPO

HONG KONG - Developer Cheung Kong plans to launch the first yuan IPO in Hong Kong next year, a move that could set the stage for other companies to raise yuan funds in the world's hottest IPO market.

Hong Kong, an IPO hotbed that raised US$50 billion this year, has been China's fast-growing offshore market to internationalise the yuan, with borrowers and investors keen to raise funds via instruments such as dim sum bonds.

Cheung Kong is one of Hong Kong's largest property developers owned by billionaire Li Ka-shing.

'This offers another variety of instrument in this fast growing market,' said Frances Cheung, a senior strategist at Credit Agricole in Hong Kong.

'We have only seen bonds and money market instruments so far and introducing equities will ensure that activity picks up in the secondary market.' Cheung Kong plans to spin off and list a rental property in China through a real estate investment trust (Reit) to raise more than 10 billion yuan (US$1.5 billion) in the first half of 2011, the Hong Kong Economic Times quoted market sources as saying.

The rental property included hotels, commercial properties and shopping malls, the Chinese language paper added. Banking sources confirmed the deal.

Cheung Kong officials were not immediately unavailable for comment.

The IPO has got the greenlight from relevant Chinese authorities, while Citic Securities and HSBC are handling the deal, the paper said. A banker who spoke on condition of anonymity said he did not foresee any regulatory hurdles from China and Hong Kong.

The Hong Kong exchange's systems are ready for a yuan listing, said an exchange official who declined to be identified as he was not authorised to speak to the media.

'There is no restriction on the type of currencies in share trading on the stock exchange under the listing rules,' he said.

Hong Kong Exchanges and Clearing Ltd Chief Executive Charles Li had said earlier that Hong Kong could see initial public offerings denominated in yuan as early as next year as Beijing moves to internationalise China's currency. -- REUTERS

Source taken from Business Times Online
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#35
Thank you for the news article Mr Engineer !

Do you expect ARA to appointed as the Manager of such a property trust in the future ? It will certainly help fulfill John Lim's pledge to boost AUM to over $20 billion over the next few years.

(Not Vested but always interested)
Disclaimer: Please feel free to correct any error in my post. I am not liable for anything. Do your own research and analysis. I do NOT give buy or sell calls and stock tips. Buy and sell at your risk. I am not a qualified financial adviser so I do not give any advice. The postings reflects my own personal thoughts which may or may not be accurate.
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#36
I don't know whether it will be managed by ARA. Personally I doubt so, as CK only owns about 15% of ARA while John Lim owns about 36%; appointing ARA to manage such a REIT would only mean giving free $ to JL. Moreover, I personally think that this deal reeks with political agenda in terms of the yuan currency. But there is a recent spike in ARA price movement, so nobody knows. Maybe a new fund will be set up in ARA, Asia Phoenix Fund, to purchase/subscribe over this REIT? haha
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#37
another good news for ARA.. sometimes i find it difficult to monitor all the developments of ARA trusts.. haha

http://info.sgx.com/webcoranncatth.nsf/V...9003C7412/$file/PressRelease-301210.pdf?openelement
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#38
> another good news for ARA.. sometimes i find it difficult to monitor all the developments of ARA trusts..
> haha

Not very significant. BIg jump in ARA earnings come from new asset acquisitions or new REIT management. But it does add to the stability of CACHE REIT yields.

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#39
Sudden crazy surge in ARA prices... Same with UOB Kay Hian.. Looks like the January Effect kicking in. 2nd tier stocks are moving up!

Damn.. missed the Kay Hian opportunity..
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#40
UOBKH's surge is most probably due to KE's offer...
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