ART

ART plans to raise $560.6m via issue of 487.5m new units to fund its acqn. The acqn will almost double ART's assets to $2.85bn comprising 65 properties with 6681 units & transform it from a pan-Asian to a global Reit, making it the 6th largest S-Reit by asset size. ART will also have right of 1st refusal to parent’s 97 properties spanning Europe, Spore, Vietnam & China. While ART will book $106m gain from the sale of Ascott Beijing, the massive 79% increase in units could dilute DPU at a time when Europe is facing a slowdown. ART currently offers FY10 DOU yields of ~6%. Immediate support at $1.20.