Ascendas REIT
Action: BUY
Target Price: 2.47 (in 3 months)
Entry Price: 2.28
Stop-Loss Price: 2.20
In the Annual General Meeting 2015 on 30 June 2015, Ascendas Real Estate Investment Trust (A-REIT for brevity) stated it will 'explore new investment opportunities in a developed country', confirming a similar statement on the Annual Report. When probed, the CEO, Tan Ser Ping, did not comment further. But in my opinion, Australia is the country to go; high level of demands for industrial property for e-commerce, continued growth in logistics in Australia, and firms acting on counter-cyclical buying opportunities to secure properties below fair value.
Today, it is reported that A-REIT is buying a logistics portfolio from both GIC and Frasers Centrepoint, and that the property is located in the cities with greatest industrial demand: Sydney, Melbourne and Brisbane.
Even with rising interest rates looming by the end of this year and weak international demand in resources, which led Australia's growth in the past 7 years or so; with continued growth in A-REIT's industrial land sector in both Australia and Singapore, its fit into a world with more home office and enterprises in future through its Australian investment, and the slow but sure economic recovery of Australia, I think A-REIT is making the right calls.
