IREIT Global *Official* (SGX: UD1U)

[funnycow]

New ipo...!

88 cents again.

8% yield for FY 2015

Listing on 8 Aug

Nav 78 cents

 

[SpeedingBullet]

lol so prosperous.

will it drop to 80c?

 

[funnycow]

Haha. Hm but the NAV 78 cents though.....

I read Chinese tycoon plans to buy about 60% of the ipo

 

[SpeedingBullet]

Haha. Hm but the NAV 78 cents though.....

I read Chinese tycoon plans to buy about 60% of the ipo

LOL.. lemme guess.. his name is Tong Jin Quan

 

[Bedokian]

I see a lot of 8s around, perhaps more for auspicious reasons to have these figures?

 

[funnycow]

LOL.. lemme guess.. his name is Tong Jin Quan

Ya. You're right. This guy seems to be vested in quite a number of REITS..

 

[Minx99]

Anyone have a link to this IPO prospectus? Can't seem to find it on SGX opera website? Thanks.

 

[lzydata]

Anyone have a link to this IPO prospectus? Can't seem to find it on SGX opera website? Thanks.

Here you go:

OPERA - Details on CIS Offers

 

[lzydata]

After skimming through:

- German office properties - that's a first for Singapore.
- Investment mandate of office properties in Europe - also a first.
- Projected DPU of 7c per year through to 31 Dec 2016 or about 8.0% yield on IPO price of 88c, supported by a guarantee of 100% distribution up to then
- 13% premium to book value (78c)
- Gearing of about 31%

But the biggest thing that struck me is the structure of the REIT. The sponsor is a company owned by Itzhak Sella, a real estate investor-manager in Europe and Israel. At the level of the manager, Tong Jinquan will own 65%, the rest by a company that is 87.5% owned by Sella. At the level of the REIT units, Tong will own 60% and the public 40%. Sella will be executive director and CEO of the REIT and Tong a non-executive director. There is a third figure, Ms Jeremy Adina Bard Cooper, who will serve as CEO of the manager and CIO of the REIT, but she owns in effect only 4.375% of the manager.

While there will be an independent non-executive chairman, independent directors, the trustee and all the usual corporate governance safeguards, it seems this show is going to be run by two individuals: Sella and Tong. You could say that this may not be a bad thing because one has full rein over the operation and the other has the most skin in the game. But what if they disagree over strategy or decisions? Would that not be very troublesome, compared to a case where ownership and control was more spread out?

When Soilbuild listed its REIT I noted its somewhat unusual arrangement where the Soilbuild founder took the majority stake in his individual capacity and not the sponsor Soilbuild Construction Group. This is a totally different level. To me personality issues will be the greatest risk factor.

 

[alexchia01]

Here you go:

OPERA - Details on CIS Offers

Looks good... 8% Projected Distribution. Germany REIT with Deutsche Telekom as their major tenant.

 

[Minx99]

Here you go:

OPERA - Details on CIS Offers

Thanks

 

[itedino]

Paul: Can buy this IPO???

Any analyst here??

 

[sandwicher]

Sounds not too bad. However, I do not know and I'm not comfortable with the risk of:
1. Europe economy - Italy banks are recently in news again, hinting at a possible relapse of the EU breakdown.
2. Euro currency fluctuation which may affect the yield in SGD.
3. Russia/Ukraine crisis which may affect Germany (Germany buys gas and oil from Russia)
4. Stability of the Germany government? Not too sure.

8% is quite high. But for me, I think since they're such risks involved, I require a higher return in exchange.

But those who knows more about the German economy can take a look at this!

 

[funnycow]

yeah, its a portfolio with properties solely in Germany.

only 4 properties. freehold though.

 

[SpeedingBullet]

Ya. You're right. This guy seems to be vested in quite a number of REITS..

He's the asshole who diluted my lippo stake.

 

[actman]

A smart Chinese tycoon that takes advantage of current low interest rate to buy in SREIT which is of higher yield.

 

[Wood4]

Then where are the smart Singapore tycoons ?

 

[SpeedingBullet]

A smart Chinese tycoon that takes advantage of current low interest rate to buy in SREIT which is of higher yield.

hes just shuffling his excess billions outside of China like any rich Chinese man would

The others are buying real estate in Europe/US.

 

[kenpachi82]

$ made in China have to be transferred to offshore investments to turn it into legitimate $..

 

[Minx99]

$ made in China have to be transferred to offshore investments to turn it into legitimate $..

Yes, we can sort of guess from the REITs that he have invested so far, not exactly the creme de la creme type