Forterra

Forterra: no recent news to update. The trust announced inline 2Q13 results in early Aug, with net property income falling 13% qoq to $13.5m, due to the fall in rental income following the disposal of Central Plaza in May '13. Meanwhile the core stabilized commercial portfolio continued to enjoy a steady and high occupancy of 94.12% and 94.77% at The HQ office towers and Forterra House respectively. NRA highlights potential catalyst if the conditional acquisition of a 29.98% stake in Forterra is by Nam Fung Group - one of the largest privately-owned property developers in HK - completes successfully. Nam Fung's coming on board as a significant shareholder can be expected to lift the financial standing of Forterra, and it cuold also offer mgt expertise to Forterra as well. NRA expects the deal to be completed by 31 Aug 2013 at the latest. NRA has a long term Buy rating on the trust, with TP $2.59