I was thinking last night that with the flurry of M&A among REITs recently, would we see a merger between CapitaLand Retail China Trust (CRCT) and Mapletree North Asia Commercial Trust (MNACT)?
Afterall CapitaLand bought over Ascendas-Singbridge not too long ago.
The portfolio of CRCT and MNACT are similar in nature to an extent. They are synergistic geographically and in the type of properties - retail.
Some basic metrics of both counters
CRCT
Market Cap (based on $1.53 share price) : $1.84 B
No. of Properties: 13 (China)
Property Value: $3.8 B
MNACT
Market Cap (based on $1.16 share price): $3.7 B
No. of Properties: 9 (China, HK, Japan)
Property Value: $7.6 B
I couldn't find any information on market capitalisation from CRCT's report but a quick calculation got me $1.84 B.
So if a merger does occur, we are looking at a REIT with about $5.54 B market capitalisation and 22 properties in North East Asia worth $11.4 B thereabout.
I also did a quick comparison against some of the REITs among my portfolio for curiosity sake.
MLT Market Cap: $6.15 B
CCT Market Cap: $7.9 B
Suntec Market Cap: $5.2 B
Anyway the above is just a wild thought on a boring night. Just read and forget.
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On a side note, I drove my bro to a certain bubble tea shop just now.
Despite being a Tuesday afternoon, I saw streams of youngsters going into the shop.
That got me curious. After that I found out this shop is actually a franchise by a local mini celebrity. And a really famous singer once said this is his favourite tea shop in Taiwan*.
(Not going to name names as I don't want to advertise for them and more importantly, I seriously find the tea so so only. Haha.. But some of you might recognise from this bottle.)
The busybody me did a quick back-of-the-envelope calculations.
Their tea costs between $4 - $7. And they already sold nearly 500 cups by 2 pm.
Basing on $5 a cup and a sales of 1,000 cups per day, their annual revenue is easily $1.8 M.
With a 50% margin (easily for a F&B product like bubble tea), they are earning close to a million every year.
Cool.
Lessons learnt:
1) Power of networking
Especially if you know famous people.
2) Power of celebrity endorsement
Just a simple one sentence remark by that famous singer can make this shop people mountain people sea.
Really power.
* Edited some information.
* Edited some information.
