Latest news with #Daol
Bangkok Post
4 days ago
- Business
- Bangkok Post
Rising border tensions weigh on investor sentiment
Escalating tensions along the Thai-Cambodian border are affecting investor sentiment and threatening several key business sectors, especially beverages, tourism, retail oil and exports, according to Daol Securities (Thailand). Mongkol Puangpetra, executive vice-president for strategy research at Daol, issued a cautious investment outlook, highlighting specific downside risks for companies with significant exposure to Cambodia. The firm singled out Samart Aviation Solutions (SAV) and Carabao Group (CBG) as the most vulnerable in this climate. SAV, which derives all of its revenue from its air traffic control concessions in Cambodia (valid through 2051), is viewed as highly sensitive to any deterioration in Thai-Cambodian relations. Daol recommends postponing investments in SAV until the situation stabilises, citing heightened geopolitical risk. Meanwhile, CBG, a major energy drinks producer, earns roughly 13% of its revenue from Cambodia, where it commands a market share of more than 50%. The company has a three-month inventory buffer and has shifted to sea freight to mitigate risk, though shipments now take 3-4 days longer than land transport. Despite the tension, Cambodian distributors report stable sales and consumption levels. However, should exports halt between July and December, CBG could face a 340-million-baht loss in net profit, equal to around 10% of its earnings. The brokerage believes this downside is largely priced in, and maintains its full-year profit forecast for CBG at 3.3 billion baht. Meanwhile, CBG's new factory in Cambodia is still slated to open on Dec 1. Other beverage firms such as Osotspa (OSP) have only limited exposure, with Cambodian exports accounting for just 1% of revenue. According to Daol, retail operators have reported minimal risk from border unrest. Siam Global House (GLOBAL), which operates two stores in Cambodia through a 55%-owned joint venture, earns less than 2% of its revenue from the Cambodian market, while CP Axtra (CPAXT) operates three stores in Phnom Penh and Siem Reap, contributing less than 1% of revenue. CP All, the local operator of 7-Eleven, has 112 stores in Cambodia, but the revenue impact remains less than 1%, noted the brokerage. For the retail oil sector, PTT Oil and Retail (OR), which has a significant presence with 186 petrol stations and 71 convenience stores in Cambodia, has reported no operational disruptions so far. Likewise, the food sector reported minimal impact, with Thai Union Group (TU) reporting just 0.01% of revenue from Cambodian exports, and GFPT Plc, which relies on Cambodian labour for 20% of its workforce through third-party agencies, reporting no repatriation requests or labour disruptions. According to Daol, Thai construction firms appear insulated from immediate fallout. CH Karnchang (CK) has no direct Cambodian labour, while Stecon Group (STECON) and SEAFCO Plc report 5% and fewer than 10% of its workforce as being Cambodian, respectively. All these firms have confirmed that their operations are functioning normally at present. However, the border conflict may discourage travellers, with the brokerage warning that escalating tensions could negatively affect inbound tourism. Several countries have issued travel advisories, cautioning against travel to areas near the border.
Yahoo
18-04-2025
- Business
- Yahoo
RFR loses 285 Madison to Korean lender
A lender has finally wrested 285 Madison Avenue from Aby Rosen's hands. Daol Asset Management, a Korean investment firm that doled out $200 million in mezzanine debt on the Midtown tower, took the asset at auction yesterday after Rosen and Michael Fuchs's RFR declined to bid on the deal, The Promote first reported. The firm stayed on the sidelines because the deal had been devalued by 'today's capital market environment,' a spokesperson told the publication. 285 Madison, which stands a few blocks from Grand Central, was reappraised at $300 million last summer — effectively half of its 2017 value. Daol may hold the keys to 285 Madison, but it wasn't the first lender to make a grab for them. Late last year, the bondholders on a $219 million CMBS loan slapped the firm with a pre-foreclosure filing after its second default of 2024. Ahead of a May maturity, RFR told its lender it would be unable to pay off the loan when matured, according to Morningstar Credit. It managed to nab a six-month extension, but when the new maturity dawned, it was in the exact same spot — overleveraged in a relatively high-rate environment. The firm requested yet another extension; the bondholders instead moved to foreclose. A little over a month later, Daol made its play for the asset, filing a UCC foreclosure on RFR's ownership interest in the property. The move allowed the mezz lender to skip the line. UCC foreclosures, by nature, move months faster than judicial foreclosures in New York State — what the bondholders filed. Case in point: It took Daol a little over two months to take the keys. It's not surprising that two lenders were vying for ownership. 285 Madison is in good shape, especially for an older office tower. It's 96 percent leased and pulling nearly three times as much revenue as expenses, according to Morningstar. Critically, though, those expenses do not account for debt service, which has crippled the building. All told, RFR had $419 million in debt on the deal. It's been underwater since November 2022, when it was first reappraised for $411 million — a 30 percent cut from its 2017 value. RFR faces third foreclosure filing in a month as lenders lose patience RFR hit with second foreclosure at 285 Madison Avenue This article originally appeared on The Real Deal. Click here to read the full story. Sign in to access your portfolio
