Daisin Retail Trust is the first IPO listing in 2017.
This listing looks very rushing in its timing. Just read about the news in the newspaper this Saturday morning. Subscription already opened Friday 9 pm and will close on Wednesday noon.
I have doubts in this new Daisin Retail Trust. The reasons:
1. China. Hmm.....
All the initial three properties in one single city, Zhongshan, which means high geographical concentration risk. The spsonsor of the trust, Zhongshan Dasin Reit Estate Co., also has right of first refusal for further 14 completed and uncompleted properties. However, the bulk of these propertes are in Zhongshan too, which further aggravate the
geographical concentration risk.
2. Placement and rights issue?
Good to know that the Sponsor has properties in the pipeline to be injected into the ......