In my November posting, I blog about the civil unrest in Hong Kong has damaged one of the malls 'Festival Walk' owned by Mapletree NAC. The management was force to temporary close the mall. Business was resumed on 26 November. Following with it, Mapletree NAC announced the decision to propose acquisition of two office properties in Greater Tokyo on 4 December. This is in line with the effort to diversify their portfolio to avoid concentration risk in one asset.
As this announcement came almost after the incident in Hong Kong, it could be a trigger point, that prompt the management to move into action. Well, I had expected some action to be taken, but I certainly didn't expect them to move that fast. Taking a look at the proposed assets in Japan:
Looks just like any other office buildings, isn't it. But wait, lets take a look in details.
It is located within the Tokyo prefectures with nearby facilities. An interesting fact is that it is a Freehold property. This does hold a bit more values than a lease-basis property. Japan has one of the highest concentration of population density within the cities. This contributed to a shift of a mass of people living close or within the city itself, and Tokyo itself is a economic, financial and political center of Japan. In the past, I have profited from other Japan assets such as Saizen Reit and Croesus Retail Trust, as such I could see this as a possible valuable assets to hold for long term.
Overall, I like the fact that the management has taken actions to reduce their concentration risks, one of the factors I usually looked into for an investment is a pro-active management that do something to improve the situation. As the old saying:
Overall, I like the fact that the management has taken actions to reduce their concentration risks, one of the factors I usually looked into for an investment is a pro-active management that do something to improve the situation. As the old saying:
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