Yee Chia Hsing, executive director of Datapulse Technology, on Oct 21 acquired 77,900 shares on the open market at 9.69 cents each. Before the transaction, Yee did not hold any Datapulse shares.
Yee, the sole board director with an executive role, was appointed to this post less than three months ago on Aug 1. He was previously director of corporate affairs at iX Biopharma and before that, head of Catalist, CIMB Bank, Singapore branch, from 2011 to 2021.
Datapulse was previously known for its business in making compact disks. With this storage medium phased out, the company spent several years under different controlling shareholders
and management teams to build a new business. Under controlling shareholder and chairman Aw Cheok Huat, Datapulse began investing in hotels.
Specifically, the company holds 100% of Travelodge Myeongdong City Hall and 15% of Travelodge Myeongdong Euljiro in Seoul as well as 5% of Travelodge Harbourfront in Singapore.
On Oct 20, the company said it has received the go-ahead to list and quote up to 109.5 million rights warrants and the same number of new shares. The company first announced plans for this one for two rights issue of warrants, each carrying an exercise price of 9 cents at end of the five-year period.
According to the company, funds raised from the rights warrants issue can potentially be used to acquire other hospitality assets “at a bargain”, given how the industry had suffered over the
past two years because of the pandemic. Datapulse is looking at potential deals in the $5 million range — similar to its previous acquisitions.
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Maiden acquisitions
Tan Juay Hiang, independent non-executive director of the manager of Daiwa House Logistics Trust (DHLT), on Oct 19 acquired 10,000 units on the open market at 55 cents each. This brings his total stake to 170,000 units or 0.025%. Before the transaction, he had acquired 10,000 units at 58 cents each on Oct 14.
Back in November 2021 at the time of DHLT’s IPO, Tan had subscribed to 150,000 units at 80 cents each. Between July 2012 and December 2019, Tan was CEO of the manager of the Ascendas Hospitality Trust, which was later amalgamated with Ascott Residence Trust and the combined entity renamed CapitaLand Ascott Trust.
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Tan’s acquisition earlier this month came a fortnight or so after Takeshi Fujita, CEO and executive director of DHLT, acquired 45,000 units at 62 cents each on Sept 29. According to the filings, Fujita did not own any units before the transaction.
On Aug 3, DHLT reported a maiden net property income of $30 million for the period Nov 26, 2021, to June 30. This was 4.5% lower than its own forecast at IPO. Revenue in the same period was 3.6% lower than forecast or $38.9 million. The REIT’s manager attributed the drop to a weaker yen.
On Sept 21, DHLT announced its maiden round of acquisitions, spending JPY4.68 billion or $47.7 million to buy two freehold logistics properties plus a piece of land from sponsor Daiwa House Industry. The purchase price was 11.8% lower than the average appraised value of JPY5.3 billion. The REIT plans to pay for the acquisition with bank borrowings plus the issuance of new units worth JPY1.25 billion to its sponsor at no less than 77 cents each.
According to DHLT’s manager, the Japanese logistics market has experienced strong demand over the past few years, resulting in low vacancy rates and rental growth in general. While new supply is expected, demand is also seen to remain healthy because of e-commerce.
“We believe that the proposed acquisition will enhance the quality of the existing portfolio. This transaction also reinforces the continued strong commitment and support from the sponsor,” says Fujita.
