CapitaMalls Asia converts China development fund to an income fund, increase fund size, expand due date

This action is akind to the BBs telling you that either
1)the asset is not ready to be injected yet, because the asset prices has not peaked
2)they are stretched in China to improve their malls' NPI and ROI, so they want you to wait a little longer and they will compensate you with dividend at the mean time

This will surely affect the asset injection pipeline into CapitaRetail China Trust.

Thomson Medical Centre Pt 2

I foresee a medical cluster at Stulang Laut, JB which consists of
Thomson Medical Centre(birth delivery, post natal), and
TMC Life Sciences(fertility consultation) in the spirit of one shop station(一站式/一条龙 in Mandarin) where usually the producer would capture the upstream and downstream profits by being involved in both.

prices will be about 20-40% lower compared to when it is done in Singapore
why Stulang Laut, why not Kempas Baru or Impian Emas or Bukit Indah?
My opinion is that it is likely that there would be only one stop for the MRT extension from Singapore to Malaysia by the Singapore side. Putting it in Stulang Laut will enable it to capture the patient from Indonesia and beyond besides Singapore. Also, it will be nearer to Singapore compared to the other medical centres. e.g. Columbia, KPJ and other upcoming specialist medical centres.

NLA efficiency

NLA efficiency is the ratio between NLA(net lettable area) and GFA(gross floor area). The more efficient it is, the more packed the mall/building is, unless the management/developer is smart enough to deflect some of it thru creative use of round/honeycomb/dome shape structure or water fountain or some other attractions.

Thomson Medical Centre

After Peter Lim bought out Thomson Medical Centre, it turns out he has plan to bring Thomson Medical Centre into JB,

 

[S'pore billionaire plans Johor medical centre
Sun, Apr 17, 2011
AsiaOne

SINGAPORE - Singaporean billionaire Peter Lim is currently working on bringing Thomson Medical Centre across the causeway and into Johor.

The Straits Times reported that the, The Edge weekly said: Mr Lim who took over the Singapore-listed Thomson Medical private last year, has bought 14ha of land in the southern Malaysian state for the project.

The land, in the Stulang Laut area, about 2km from the Johor Causeway, was bought for a purported RM200 million (S$83 million), it reported.]

Outgrow your problem

“Impossible is something that people try to reason to themselves in order for the status quo to remain the same" by la papillion

In this case, if we apply it to a company

“Impossible is something that company try to reason to itself in order for the profitability/growth to remain the same if not declining"

For example, OLAM, OLAM was a middleman all along, until one day the founder found that it is increasingly under competition in the sense that more and more growers/planters bypassed them and went directly to the buyers. It then launched an ambitious project to go upstream and the rest is history.

a successful AEI, or beginning of a trend

What does

The Tube in Malaysia

Oxley Biz Hub in Singapore

or a small industrial building floor in Red Hill has in common?

They all have in mind for a young and hip generation SOHO style office.

Read more about the AEI by Mapletree Industrial Trust here (page 15)

http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_50AB8AA4A20F0E8F4825787E00467006/$file/4QFY2010_Results_Presentation_Slides.pdf?openelement

YTL Power

YTL Power stock prices has been on the decline since the launching of YES 4G. I am struggling to understand its move as the public has been. After reading a blog post in http://goodstockbadstock.blogspot.com/, I found the answer. Basically, YTL Power is hedging for the future. The first generation IPPs contract in Malaysia will expire gradually in the near future(5-15 years if I am not mistaken), the double  digit yields enjoyed by them may be reduced to single digits upon renewal of the contracts or may not be renewed). YTL Power is trying to get a new revenue generator which has stable growth(ElectraNet, Wessex Water, Jawa Power, Power Seraya….look at the acquired assets as a group and you shall see some similar features)

Cognitive surplus

 

Lots of start-ups are fighting to become the next Wikipedia(for fee version that is). If the theory that I read in a book is true(whereby more people are willing to help for free rather than for a low fee), none of them will achieve a very significant mass comparable to Wikipedia. But, if they focus on a specialized subsection of cognitive surplus combined with a modified B2C business model ala Quirky(www.quirky.com), they may well laugh all the way to the banks.

Mah Sing

Mah Sing saw something in Johore and thus the recent action.

Have you seen it

?

Here’s a clue

Watch the share price of Crescendo Corp

City square seems ready for injection

City Square seems ready to be injected into Malaysia Commercial Development Fund or CapitaMalls Malaysia Trust. In a recently completed AEI, the management has added some beauty kiosks at the ground floor and managed to revamp a huge dead end corner lot retail unit at second floor. They shrunk the corner lot and created a few beauty kiosks out of it. Brilliant. They will divest it only at the peak of the market. When is the peak? It might be before the completion of the nearby Komtar building or it will never be divested.

Arbitrage activities by listed companies

 

Currency Arbitrage

1) Buying products made in neighbouring countries at subsidised cost and selling at premium/higher than average price in destination countries

What i have seen – ice cream cakes, pastries, cookies

 

Interest Rate Arbitrage

2) Borrowing funds at low interest rates from source countries and buying properties with yield equivalent to/higher than borrowing cost in destination countries with high borrowing cost

Destination countries – Australia, India

Uniqlo

Uniqlo striked the jackpot by providing wide variety of designs and colours with above average quality at mass market prices.

 

Notes: Wing Tai Singapore owns 49% of Uniqlo Singapore, Wing Tai Malaysia owns 45% of Uniqlo Malaysia

The tide has turned

The stars are clearly at it.
Aenith would begin to introduce companies/industries that do things differently
This is not a buy or sell recommendation

Cannibalization of ready to eat business in Taiwan

Convenient stores in Taiwan has started to move some of their stores to bigger footprint in neighbourhood areas and catering breakfast and lunch by providing tables/chairs, in addition to their ever-growing food items for sale.  The act of providing tables/chairs has extended the times(number of minutes)customers staying in the stores thereby extended the times of capturing the eyeballs of the customers, and therefor most likely will lead to increased revenue generated


When business gets too big so much that they cant find much growth in their traditional markets, they have to branch out to other areas. In this case above, the convenient stores has cannibalized into the eatery business.

REIT FAQ – why why why

I am not going to tell the answers here. Read it in my upcoming book which will be published in 2011 or 2012 if there is sufficient interest

 

Question No 1

1) Why Robertson Walk will never be injected into Frasers Centrepoint Trust or Frasers Commercial Trust?( I am not saying totally impossible..but its a sure 99.99999999999999999999999999999999999999999999999999% no)

 

Question No 2 is related to Question No 1

2) Why City Square, Johor Bahru will never be injected into CapitaMalls Malaysia Trust??( I am not saying totally impossible..but its a sure 99.99999999999999999999999999999999999999999999999999% no within a 5 years period)

 

Question No 3

3) Why Starhill Global REIT(YTL’s Singapore REIT) will continue to trade at below 1x book value(currently 0.6x) despite repeated buy calls from analysts?(unless something major happens)

YTL has done it again

YTL bought Niseko Village, 617 hectares of land for 223 million and then sell Hilton Niseko Village for 222 million to Starhill REIT. In other words, YTL got 200-room Green Leaf Hotel and two 18-hole golf courses, and 155ha of leased ski mountain land on which are situated seven ski lifts and 15 ski trails for RM 1 million. The master is at it again.

What are your biggest fears

This blog started off as some sort of a venture which faltered. and then it became my pet for my ideas..and then it turned into a market commentary site..and now I gona deviate part of it back to its origin – more of an idea site..do you still remember what were your ambitions while you were in primary education? I do..I wished to be scientist. wished to be entrepreneur..wished to be an inventor…Well, I am not in any now..but the silver lining is, i still retain the inquisitiveness in me, the entrepreneurial spirit(to my VC friend, I will be back) and thoughts, and finally, the Creating Mind(ala Five MInds for the Future)which mixes disparate ideas into something different. Recently, I have started to firing salvos at a few different areas, putting ideals into motions. As I realized that I do not have to be the owner of the end solution/product/result, I need to contribute the idea, the prototype, or the impetus of a workable solution only. I have been to a few occasions recently, I can see the sparkles in the inventor’s eye. If compared to a lot of dead walking zombies on the road, it is really between heaven and earth. I can feel the enthusiasm of a 1st year undergrads (Woot!) versus the bland expression of someone who has been working for years. I don’t ever want to be like the next guy/girl in the talks/seminars, where nothing is done aftermath and life goes on. If this long winded article lights up a chord in you or you have been slugging it out despite all odds, get in touch =)

Creativity

We live in an age when the most valuable asset any economy can have is the ability to be creative - to spark and imagine new ideas, be they Broadway tunes, great books, iPads or new cancer drugs. And where does creativity comes from?

"To be creative requires divergent thinking (generating many unique ideas) and then convergent thinking (combining those ideas into the best result).  It comes from being exposed to divergent ideas and cultures and peoples and intellectual disciplines. One thing we must know about creativity is that it typically occurs when people who have mastered two or more quite different fields use the framework in one to think afresh about the other(rojak, in my own terms =) )

Leonardo da Vinci was a great blah blah and blah, eane(and) each specialty nourished the other. He was a great lateral thinker. But if you spend your whole life in one silo, you will never have either the knowledge or the mental agility to do the synthesis, connect the dots, which is usually where the great breakthrough is found




Thomas Friedman

Gandhian Innovation - Bharti Airtel

Read an article in HBR recently titled “Gandhian Innovation” by C.K. Prahalad and R.A. Mashelkar What captured my eyeballs was that the paragraph talking about how Bharti Airtel was losing money until it decided to change tact from looking at profit margin to looking at revenue as key business ratio. I am suspecting Singtel learnt from their partner, Bharti Airtel and brought it over to Singapore. First with its prepaid business since few years ago(you can note this by looking at Singtel’s  prepaid users net adds  per quarter or looking at ARPU that keep making new lows.) and now expanding the same strategy to mio TV line of business as well.  Starhub looks increasingly fragile to me. Bharti Airtel, 1 cent per min in India…hmmmm

Oceanus

Strategy gone wrong. Oceanus strategy of offering abalones to the public at mid market prices is noble and commendable. But the thing is, abalone is discretionary consumer items. A customer is not likely to visit monthly just to savour the dishes.