ARA Update

I still do not have time to write up a summary of the lengthy ARA analysis. My apologies.

I have time, however, for a quick update. On 13 Jan 2010, the Business Times reported that ARA is going to set up a REIT with CWT. This was mentioned in passing in a short paragraph in an article that is almost totally irrelevant (it was about the future of SGX as a listing ground). Makes you wonder if it was a deliberate leak. I take that back, lest I get sued.

On 14 Jan 2010, ARA and CWT came out and clarified that they are planning to put together a logistic REIT but nothing is firmed up. SGX has yet to provide the approval. But given that SGX is desperate to get more listing fees (especially since few Chinese co. are listing here, many are planning to go HK and the newest sign of desparation - proposing to allow SPAC (essential a backdoor vehicle for an SGX listin) on the exchange), this is unlikely to get in the way. The deal is more likely to fall through if ARA and CWT can't agree on the terms between themselves.

The potential listing of this REIT was first highlighted in the previous posting(s). And you know that favourite pet phrase they use on TV? I am going to say it - And You Heard It First on wIy.blogspot.com!

Stock has gone up in tandem since the announcement. Makes you wonder why it didn't move when they annouced the cooperation with Regency Group. Was it already all priced in before the annoucement? (someone knew someone who know someone who knew and had all bought the stock?) Or did the lack of price movement merely reflect an inefficient market and the price should move up further to price that in?

Something to mull on - investment food for thought.