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The Assembly Place - Balloting Results

This is probably one of the most usual press releases that went alongside the SGX announcement of the balloting results. The Company released a full presentation deck , which is actually quite informative, with information of upcoming pipeline etc (probably the Company felt that it is safer to release this after the IPO closes and not before). The balloting table is as follows: The IPO has drawn strong interest from prominent institutional funds such as Avanda Investment Management (as investment manager for and on behalf of its fund(s)) and Lion Global Investors Limited (as investment manager for and on behalf of its clients), along with prominent investors, including Mr Han Seng Juan, Mr Rudolf Jurgen August Rolles and Mr Chong Soon Kong @ Chi Suim2 , underscoring strong confidence in TAP's investment proposition. Separate from the Invitation, cornerstone investors, namely Apricot Capital Pte. Ltd., Asdew Acquisitions Pte. Ltd., Cache Capital Pte. Ltd., ICH Synergrowth Fun...

Daiwa House Logistics Trust (Initial Thoughts)



Daiwa House Logistics Trust ("the REIT" or "DHLT") recently lodged its preliminary prospectus on OPERA. You can download the prospectus here

As part of the offering to institutional investors, the Company also released management slides on NetRoadShow. It is a pity they did not publicise this link, I would view it as "not the same level playing field" and urge the authorities to allow such materials to be released concurrently to the public as well. 

I will do a more detailed review when the public offering starts but for the benefit of readers who want to take the placement tranche, here are my initial thoughts and I quite like the IPO for the following reasons: 

Reputable Sponsor with strong pipeline - Daiwa is a well established real estate conglomerate listed on Tokyo Stock Exchange with extensive experience in this sector. The Sponsor has a strong pipeline of assets in Japan as well as Southeast Asia which can be acquired by DHLT on a ROFR basis. 

Quality portfolio acquired at a discount - The portfolio comprises 14 logistics properties in Japan and are of high quality, modern and recently built (less than 5 years). The IPO portfolio is acquired at a 11.7% discount compared to the valuation provided by CBRE and Savills. The attractive price given to DHLT highlights the Sponsor's strong commitment to DHLT and the IPO.

Strong Macro Tailwinds - with the proliferation of e-commerce globally (especially in Asia), the marco tailwind is strong and this is also evidenced by the strong demand for industrial and logistic REITs on SGX, which are trading at much higher valuation

Attractive yield and valuation - The projected yield of 6.3% to 6.5% is attractive, vis-a-vis its logistics peers listed on SGX, even more so when you consider that the price-to-book is below 1x. The properties are being rented out on long term leases (WALE of 7.2 years), adding to the stability of cash flows that will support the projected yield

Strong alignment with Sponsor as well as Experienced Board and Team  

I will elaborate in greater detail when I do a detailed IPO write up but my analysis thus far checks out. 

Conclusion 
I will be putting in a placement order for the REITs (<-- I know this is what you are looking for ðŸ˜œ)


Comments

Anonymous said…
Hi Mr IPO
I understand that the placement shares (if allocated) will be placed under DBS Wealth Account instead of CDP. In that case, how easy is it to sell off the shares through DBS and its costs as well? If I would prefer to sell off the shares (assuming that the costs might be lower) using my existing self service account with a 3rd party brokerage, does it mean that I need to transfer my placement shares from DBS to CDP?
Regards
Mr. IPO said…
It’s pretty easy to sell through your iWealth app at 0.12% or you use the RM for higher comms. If you want to use your fav broker, then you have to effect a transfer to the CDP account. 😄
Anonymous said…
I am keen to apply for placement shares? Just wonder if we do get our full allocation or it will usually been subjected to some form of balloting process as in a retail IPO application?
Mr. IPO said…
It is subject to demand and supply …so yes, you do get cut back if demand is strong.
LKH said…
Is there any commissions for placement? How do one put a placement? Thru RM?
Anonymous said…
when is the placement application period? how to apply for placement shares? only through dbs?
Mr. IPO said…
Placement commission is 1% and ends today for getting in the orders through DBS RM
Anonymous said…
Hi Mr IPO
Has DBS deducted the placement amount from your wealth account?
Mr. IPO said…
Results not out yet …:
Anonymous said…
Hi Mr IPO, when are u posting the detailed analysis of Daiwa REITs? Is it a 3 chilli ipo? Thanks
Mr. IPO said…
Tomorrow ! Still going through the prospectus
Pepper said…
Hello, how many chilli rating is this? Thank you
Anonymous said…
any write up on mooreast ?? tml noon closing. haha
Mr. IPO said…
Haha yah. Spend the whole day writing it 🤣