Japanese properties attracting international buyers.

International real estate portfolio investors from the United States to Singapore are increasingly looking to buy property in Japan with over $2 billion in deals already agreed this year, it is claimed....

............Franklin Templeton is understood to be looking to buy a portfolio of distressed loans at a discount, which would provide attractive returns and allow access to physical assets, while Blackstone plans to buy Morgan Stanley’s loans which are backed by commercial real estate such as office buildings.
 
Wealthy Chinese investors are also increasingly looking to Japan and a number of travel agencies have started offering Buy Japanese Property tours. Realtors say major foreign private equity groups, real estate trusts and realtors have earmarked an estimated $6.6 billion for investments in Asia, showing interest in Japan’s bricks and mortar assets and property debt.
 
‘While we are cautious around the country’s fundamentals, we do believe that the sheer size of the market allows for opportunities,’ said Peter Kim, managing director, ING Real Estate Investment Management, which has funds invested in Japan......

........Distressed or marked down properties in Japan, such as debt backed by commercial real estate, are also emerging on the radars of foreign buyers. ‘We are finding a degree of success in finding deals through trust banks or lenders who have taken control of over leveraged assets,’ said Jacques Gordon, global investment strategist at LaSalle Investment Management.
 
As foreign money pours in, the real surge in buying may just be starting, according to Mark Brown, a real estate analyst at researcher Japaninvest. The gap between what distressed property owners are asking and the amount buyers are willing to pay is closing fast, he said, adding that would lead to plenty of new deals. 

Source: PropertyWire

Related post:
Japanese real estate: Has it bottomed?

AIMS AMP Capital Industrial REIT: High yield with limited downside.

The very low trading volume these days probably affirms talk that most traders are taking the rest of the year off. There is also not much to say with regards to the counters on my watchlist. Most are behaving in ways which I think they would be behaving.

I decided to take a look at AIMS AMP Capital Industrial REIT which has been holding steady for some time now. I like this REIT for its relatively high yield. However, price has been trapped in a tight range between 21.5c and 22c for many sessions now. What direction would it take in future?

The OBV is generally flat while the MACD has declined into negative territory. Although momentum has turned negative, volume is drying up. It is very likely that this counter could be trading sideways for some time to come. With the rising 200dMA at 21c, downside could be pretty limited. If the 200dMA were ever tested as support, I would probably buy more.  With an expected DPU of 2c in 2011, buying at 21c would mean a yield of 9.52%. All in good time.

Related post:
AIMS AMP Capital Industrial REIT: Revised DPU and fair value.

CapitaMalls Asia: Reversal?

CapitaMalls Asia (CMA) is buying Queensbay Mall in Penang. I have been to this mall a few times on cruises to Penang and Phuket. I think it is the nicest mall in Penang: new, spacious, clean and cool. However, everytime I went there, I would wonder how the shops survived. It was also very quiet.

CMA's chart looks similar to that of Raffles Education: a prolonged downtrend with a white candlestick reversal signal as well as higher lows formed on the MFI as it rises from the oversold region.

The descending 20dMA is approximating $1.95 and should provide resistance. In case this were taken out, the descending 50dMA at $2.06 would be the next significant resistance level. In a downtrend, sell at resistance and that is what I would probably do.

Related post:
CapitaMalls Asia: Rebounding from $1.83

CapitaMalls Asia +1.6%; the acquisition of Queensbay Mall in Penang is accretive: JPMorgan. The house adds, the stock is at "an attractive entry level," trading at a 30% discount to SOTP valuation and 1.2x FY10E book.
Wednesday, 22 December 2010

© 2010 - The Edge Singapore

Raffles Education: White hammer.

Bullish reversal candlesticks in this counter's chart have a notorious reputation of lacking follow throughs. So, the reliability of the white hammer formed this session is suspect. Nonetheless, downtrends are rivers of hope and rebounds are not unusual.

The MFI, a measurement of demand, has risen from the oversold region. It has formed a higher low for the second time in the last fortnight. Volume has expanded as price stabilised or rose. This is a sign of underlying demand. Could we see demand improving to push the price higher?

Immediate resistance at 25.5c. Further upside could be limited as resistance is expected at 26.5c, a many times tested support turned resistance, and 27c, where we find the descending 50dMA and the downtrend resistance line.