FSBM Plaza - AmFirst REIT

There is a piece of information missing glaringly from the announcement in Bursa recently – the net property yield of the purchase. A back of the envelope calculation has yielded a maximum net property yield of around 8.3% for the 1st 3 yrs, and around 8.5% for the next 3 yrs. Since this purchase is totally debt funded, of course we will have to deduct the cost of the debt, which will be around 4.5 % – 6 %, depending on whether the loan will be on fixed rate or floating rate. Ignoring the 1% acquisition fee, 2.x% of 51 million will up the current DPU by around 0.xx%.

Quality of innovation

as described by Prof Desai

= extent of pain suffered by customers(the higher the pain the larger the value)

+number of potential customers

+life of the innovation

+difficulty in assembling a solution as well as difficulty in copying likely innovation opportunities

 

Misc

-when there is a pain, there is a need

-not every creative is an innovation

-pain point

-some innovation are only meant for specific market/industry

-FIGURE OUT how to APPLY TECHNOLOGY in ANOTHER AREA – technology for one purpose can be used/transported for another purpose

-how to go from functional(coffee shop, cafe) to emotional(Starbucks, Old Town White Coffee)

lifestyle economy – e.g. emotion(refer to above)

The THIRD PLACE – home, work, starbucks

A Produce Innovation’s lifepath

Special –> Enterprise –> Departmental –>Personal –> Mobile –>Pocket

For example from Giant Machine to Ipad

Video –> World’s first flying car

http://kidstube.com/play.php?vid=7870

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