Third time lucky

Previously, CMA - unsuccessful
Ryobi Kiso - unsuccessful
Finally this time, Cache - successful (albeit only allotted 1 lot) =D

Yeah! Hope it has a solid debut on 12 April, Monday!

Cache IPO 7.8 times subscribed

CACHE Logistics Trust’s initial public offering (IPO) of 474.1 million units was about 7.8 times subscribed, drawing support from major institutional investors from Asia, Europe, the Middle East and Australia.

Other institutional investors who were allocated units under the placement tranche include DBS Asset Management Ltd and Fullerton Fund Management Company Ltd.

Trading in the counter on the Singapore Exchange is expected to begin at 2pm today.

At the offer price of 88 cents per unit, gross proceeds of $417.2 million have been raised.

The trust will be managed by ARA-CWT Trust Management (Cache) Limited, a 60:40 JV between ARA Asset Management and CWT Limited. CWT is also the Reit’s sponsor.

The offering comprised an international placement of about 433.1 million units, as well as 41 million units to the public in Singapore of which 14 million units were reserved for subscription by the directors, management, employees and business associates of CWT, ARA and their subsidiaries.

The real estate investment trust (Reit) will hold an initial portfolio of six properties in Singapore with a total gross floor area (GFA) of 3.9 million square feet.

The Reit will focus on expanding locally in the near term before looking at acquisitions in foreign markets such as Greater China and Malaysia.

Some of the principal unitholders of Cache include CWT (12.2 per cent), ARA, C&P Holdings, and cornerstone investors JF Asset Management Ltd and Morgan Stanley Investment Management Company.

Cache’s manager has forecast for the current year ending Dec 31, 2010 a distribution per unit of about 7.65 cents, which reflects a distribution yield of 8.7 per cent.


Cache Logistics Trust rose 8.5% on trading debut
By Jo-Ann Huang | Posted: 12 April 2010 2301 hrs

SINGAPORE: Cache Logistics Trust (CLT), the first pure logistics real estate investment trust (Reit) to be launched in 2.5 years, had a bright debut in the Singapore Exchange (SGX) on Monday.

The counter ended its first trading day at 95.5 cents up 8.5 per cent from its offer price of 88 cents.

The stock also hit as high as 99.5 cents during intra-day trading before some profit taking activity pared off part of its gains.

It was also the most actively traded counter in SGX with 149.4 million units changing hands valued at S$144.8 million.

The Reit is jointly managed by CWT-ARA Asset Management and currently has six properties with a total gross floor area of 3.9 million square feet in its portfolio.

Brokerage firms CIMB and DMG have issued upbeat reports on the Reit as well.

CIMB has an "outperform" rating with a target price of S$1.23 supported by potential acquisitions worth S$220 million.

Meanwhile, DMG has a "buy" rating with a target price of between 96 cents and S$1.09.

Citing the properties proximity to established logistics clusters such as Changi Airport, PSA Terminal and Jurong Port, the DMG analysts reiterated that the assets currently enjoy a higher than average occupancy rate of 94.1 per cent compared to the industrial average of 90 per cent. - CNA/vm

AUD / NZD Update April 2010

AUD and NZD are traditionally high-yielding currencies. Historically, foreign currencies also tend to trade within a band. Therefore, when it was reported in the news that the AUD was at a historical low, my brother and I felt it was a safe bet to park our non-emergency money there and just let it grow. Even if the exchange rate doesn't appreciate in our favour, we would still have the high interest to fall back on, not forgetting the power of compounding. However, our plan turned out to be not as foolproof as we thought and we were hit by the interest rate cuts, although Australia has started to restore them back to historical levels (see below).

SYDNEY - AUSTRALIA announced its fifth rate hike since October on Tuesday and said borrowing costs would continue to rise as growth and inflation return to normal after the global crisis.

The Reserve Bank of Australia (RBA) lifted the official cash rate 25 basis points to 4.25 per cent, underlining confidence that the country has seen off the downturn unscathed and must now work to moderate prices.

'The board judges that with growth likely to be around trend and inflation close to target over the coming year, it is appropriate for interest rates to be closer to average,' RBA governor Glenn Stevens said in a statement.

Australia was the first developed economy to lift rates after the world's biggest financial shock since the Great Depression, raising them 25 basis points to 3.25 per cent in October and a further four times since.

The Reserve Bank is now unwinding its emergency cuts of late 2008 and 2009, when interest rates were slashed by 425 basis points to a five-decade low of 3.00 per cent as the world economy tanked.

'Australia's terms of trade are rising, adding to incomes and fostering a build-up in investment in the resources sector,' Mr Stevens said. 'The rate of unemployment appears to have peaked at a much lower level than earlier expected. 'The process of business sector de-leveraging is moderating, with ... indications that lenders are starting to become more willing to lend to some borrowers.' -- AFP

Disclaimer: Rates plotted are for 3-mth fixed deposits with OCBC, and not RBA nor RBNZ rates

Portfolio Review 1Q10

This is to track the performance of my stock portfolio over the course of the year.

Currently, I am holding onto 6 counters:

1. FrasersCT
   
   • Buy
     Upcoming acquisitions of NP2 and Yew Tee Point (achieved) -> increase in DPU
     Suburban malls near MRT stations mean non-discretionary spending by catchment populations -> stable DPU
2. Suntec
   
   • Buy
     
   • Upcoming Marina Bay Sands and Esplanade + Promenade Circle Line MRT stations catalysts
     Retail strength in central CBD area
     Only mixed office and retail REIT -> diversification within a single REIT
     
3. PLife
   
   • Buy
     Low gearing -> possible debt-funded acquisitions (achieved) w/o share dilution
     Resilient healthcare sector -> stable DPU
     
4. Starhill
   
   • Buy
     Announced acquisitions of David Jones building in Perth, and Starhill Gallery and Lot 10 in KL
     Retail strength in prime Orchard area
     Share price near placement price -> downside probably limited
     
5. GuocoLeisure (2012 portfolio)
   
   • Buy
     Possible privatization by Quek Leng Chan
     Hospitality strength in London and oil royalties from Australia Bass Strait
     Proxy to hospitality sector
     Possible 2012 London Olympics catalyst
     
6. Saizen warrant (2012 portfolio)
   
   • Buy
     Probable DPU resumption in 2010 -> possible share price re-rating by market

Next portfolio review due after 30 June.

Note to self: NAV includes realised P/L, fees and dividends. Performance vs. STI measures only paper value.