Starhill Global REIT *Official* (SGX: P40U)

[Alphidius]

Recently received a circular about them acquiring Starhill Gallery & Lot 10 Property in KL.
So the question is, Aye or Nay?
Anyone knows if these properties are good acquisitions?

 

[WindBoi]

gotta check with those folks frequent that area. if its not prime shopping then it dun go well with the theme of this reit.

 

[tiny]

personally neutral stance

the book say until got dragon got tiger

 

[Alphidius]

personally neutral stance

the book say until got dragon got tiger

That's the problem...
Was there any EGM in SG history that any REIT acquisition actually did not get through?

 

[MikeL09]

I would view the 2 KL acquisitions as a positive development, keeping in view news 2 days ago that Malaysia's economy leapt 10.1 % in the first quarter from the year earlier, its highest jump in a decade. PM Najib had said M’sia is on track to achieve 6-per-cent full-year growth. In contrast, Japan is likely to face a protracted period of slow, if not stagnated growth. So, it makes sense for Starhill to pare down its dependency on Japan and look for opportunities elsewhere, and in this instance, in its own backyard! After all, M’sia is one of the so-called emerging markets, which is all the rage among Fund Managers and big time investors, isn’t it?

Moverover, the 2 Starhill Gallery and Lot 10 are within the Golden Triangle zone, located at the heart of the Bukit Bintang (which literally means Star Hill in Malay) prime city centre. And considering that Bt Bintang is to KL as Orchard Rd is to Singapore, I will give it a yes vote.

 

[Alphidius]

I would view the 2 KL acquisitions as a positive development, keeping in view news 2 days ago that Malaysia's economy leapt 10.1 % in the first quarter from the year earlier, its highest jump in a decade. PM Najib had said M’sia is on track to achieve 6-per-cent full-year growth. In contrast, Japan is likely to face a protracted period of slow, if not stagnated growth. So, it makes sense for Starhill to pare down its dependency on Japan and look for opportunities elsewhere, and in this instance, in its own backyard! After all, M’sia is one of the so-called emerging markets, which is all the rage among Fund Managers and big time investors, isn’t it?

Moverover, the 2 Starhill Gallery and Lot 10 are within the Golden Triangle zone, located at the heart of the Bukit Bintang (which literally means Star Hill in Malay) prime city centre. And considering that Bt Bintang is to KL as Orchard Rd is to Singapore, I will give it a yes vote.

Ah... Very insightful and informative.
It's true that the diversified portfolio of Starhill spells good news for us investors but mumbo jumbo stack of words and numbers in the circular is simply too mind boggling.

I did note that both buildings are roughly around 15+ old. Starhill Global acquiring Starhill Gallery makes sense in some weird symbolic way though.

 

[SpinFire]

I just came back from KL. Starhill Gallery's a high-end retail mall, something like Ion, all the branded stuff like Gucci, LV, Coach.

Lot10's quite disappointing, anchor tenant is Isetan, then many of the shops still not opened. It's less high-end, with shops like Adidas, Timberland and Lacoste. I was there on a Saturday afternoon, crowd was very thin. Maybe tourists prefer to shop in the evening? Or everyone's at Sungei Wang and Pavillion?

I personally preferred to shop at KLCC (has many more brands like Zara, Gap, Isetan, Lacoste), and Pavillion (all the high-end brands).

 

[Alphidius]

I just came back from KL. Starhill Gallery's a high-end retail mall, something like Ion, all the branded stuff like Gucci, LV, Coach.

Lot10's quite disappointing, anchor tenant is Isetan, then many of the shops still not opened. It's less high-end, with shops like Adidas, Timberland and Lacoste. I was there on a Saturday afternoon, crowd was very thin. Maybe tourists prefer to shop in the evening? Or everyone's at Sungei Wang and Pavillion?

I personally preferred to shop at KLCC (has many more brands like Zara, Gap, Isetan, Lacoste), and Pavillion (all the high-end brands).

Thanks for the onsite report!!
Nothing beats looking at the property first-hand.
Let's hope Lot10 flourishes & KL's economy can keep going strong.

 

[MikeL09]

I just came back from KL. Starhill Gallery's a high-end retail mall, something like Ion, all the branded stuff like Gucci, LV, Coach.

Lot10's quite disappointing, anchor tenant is Isetan, then many of the shops still not opened. It's less high-end, with shops like Adidas, Timberland and Lacoste. I was there on a Saturday afternoon, crowd was very thin. Maybe tourists prefer to shop in the evening? Or everyone's at Sungei Wang and Pavillion?

With a good revamp and targeted marketing, things will change. I remain hopeful. The management doing something (like aquisitions), while mindful of the risk, is better than doing nothing, in light of the need to up dividend to 'dilute' the dilution effect of their not-too-long ago rights issue.

 

[Risk Adverse]

Starhill and Lot 10 on Bukit Bintang used to be the happening place in KL. With the opening of Pavillion, a lot of the crowd has since moved there. Now Bukit Bintang is a little quiet.

 

[MikeL09]

Starhill and Lot 10 on Bukit Bintang used to be the happening place in KL. With the opening of Pavillion, a lot to the crowd has since moved there. Now Bukit Bintang is a little quiet.

Ok, this is from Time, May 24, 2010 Issue, p 53 - Global Advisor, City Guide, Kuala Lumpur...

'Wild, weird, crass, yet a creative crossroads, Bukit Bintang is KL's civic strolling grounds, vast foo-reflexology parlor, Champs-Elysees and Times Square combined. This is where Lebanese kebab touts compete with discreet pimps, and venues for people-watching run the gamut from the cut-rate Sungei Wang Plaza to the upscale marble halls, trendy bars and lapping fountains of the Pavilion, KL's latest temple of consumerism'

 

[Alphidius]

I've been to KL just a few years back and clearly remembered Times Square and Sungei Wang.
Not too sure where is Pavilion located though...

 

[Risk Adverse]

I think Starhill and Lot 10 has lost a bit of it's shine since the opening of Pavilion. Hope YTL can do something to rejuvenate the place.

 

[MikeL09]

Ok, this is from Time, May 24, 2010 Issue, p 53 - Global Advisor, City Guide, Kuala Lumpur...

'Wild, weird, crass, yet a creative crossroads, Bukit Bintang is KL's civic strolling grounds, vast foo-reflexology parlor, Champs-Elysees and Times Square combined. This is where Lebanese kebab touts compete with discreet pimps, and venues for people-watching run the gamut from the cut-rate Sungei Wang Plaza to the upscale marble halls, trendy bars and lapping fountains of the Pavilion, KL's latest temple of consumerism'

Oh, I forgot to mention that Bt Bintang, with the above write-up, was listed as No.1 amongst the list of 10 things to do in KL, if that means anything.

I think Starhill and Lot 10 has lost a bit of it's shine since the opening of Pavilion. Hope YTL can do something to rejuvenate the place.

I haven't been to KL in decades and am not familiar with Pavilion. I'll put my faith in Ho Sing...
and hope to sing my way to the bank before long.

 

[itedino]

How to advise. Even they earn million does'nt mean they need to give you more dividend. Risk involve. Difficult to advise u.

 

[Paul Lee]

Goodness. Are you familiar with the concept of REITs? They need to distribute 90% of their distributable income not profit. Which is why any acquisitions by any REITs is usually accreditive. So if they earn millions (not likely) it must mean that their distributable income has also increased, which mean more distributions.

But you are correct in one aspect. The DPU can come down still.

 

[Alphidius]

All 3 resolutions were duly passed at the EGM today.
Resolution over here

Let's hope we'll have higher DPU over the next few years!

 

[Alphidius]

Starhill Global will announce their FY2010 Q2 results on 26 July 2010
Announcement here

 

[MikeL09]

Starhill Global will announce their FY2010 Q2 results on 26 July 2010
Announcement here

Let's hope Starhill will 'chia' dividend this time round!
M'sia's Bank Negara had already chia bank interest rates 3 times since beginning of this yr!

 

[Yorixz]

upside is limited though dividend can be attractive