On June 22, Thakral Corporation AWI 0.00% announced it has invested in a 10% stake in Project Glow Topco, the parent company of its joint venture partner UK-based CurrentBody.com.

 

CurrentBody (CB) is a platform for at-home beauty devices that operates more than 20 in-country e-commerce retail stores (www.currentbody.com). CurrentBody&rsquo s CB Skin LED mask is worn by Lily Colins in the most recent season of &ldquo Emily in Paris&rdquo and trended at the Oscars. CurrentBody' s Skin brand has also expanded to include products that address consumers&rsquo eye, lip, or hair growth concerns.

 

Thakral&rsquo s investment in Glow Topco includes ordinary shares and preference shares in Glow Topco as well as interest-bearing loan notes issued by a wholly-owned subsidiary of Glow Topco. In consideration for its investment, Thakral will transfer its 50% stake in CB At-Home Beauty Holdings (CBT), the joint venture company that Thakral jointly set up with CB, and invest a further cash amount.

 

On the divestment of its initial investment in CBT, Thakral will recognise an immediate profit of $3.1 million, including the year-to-date share of profit recognised on the joint venture. Additionally, Thakral will also transfer to CB, loan notes issued to it by CBT for additional interest-bearing loan notes of equivalent value.

 

Under the terms of the preference shares in Glow Topco issued to Thakral, Thakral will receive a preference sum of about $2.2 million (equivalent of GBP1.3 million), subject to the fulfilment of certain conditions. Thakral will be entitled to appoint a director and an observer to the board of Glow Topco. This deal will increase alignment of interest between CB and Thakral and focus on strong growth going forward. Thakral intends to make its extensive network in Asia available to CurrentBody to support its plans to expand regionally.

Thakral Corporation Ltd has divested its investment in the Hotel WBF Namba Motomachi in Osaka, Japan for a consideration that is about 2% lower than its original acquisition cost and valuation of the property as of December 31, 2021.

 

The Hotel WBF Namba Motomachi was acquired in September 2018.

 

&ldquo The divestment of Hotel WBF Namba Motomachi enables the group to exit a non-performing asset at a bearable loss and put the capital to more productive use,&rdquo says Thakral&rsquo s CEO and executive director, Inderbethal Singh Thakral. &ldquo We are also looking to sell the remaining two hotels.&rdquo

 

According to Thakral, this is in line with the group&rsquo s strategy to maximise return, because with the depreciating Japanese yen, this would provide potential buyers an opportune time to invest.

 

&ldquo We continue to review and fine-tune our portfolio to step up the group&rsquo s growth and transformation to drive shareholder value,&rdquo Thakral adds.

 

The funds raised from the divestment will boost the group&rsquo s cash flows for reinvesting in niche properties or other opportunities to optimise the value of its overall investment portfolio.

 

After completion of this divestment on Aug 31, Thakral&rsquo s real estate investment portfolio will have six commercial buildings with a combined area of around 430,000 square feet and two business hotels in Osaka, Japan.

 

Thakral&rsquo s core business comprises a growing real estate investment portfolio in Australia, Japan and Singapore. Its investments in Australia include the development and management of over-50s lifestyle resorts under the GemLife brand, a joint venture with the Puljich family.

 

The group&rsquo s Japanese investment portfolio comprises landmark commercial buildings and business hotels in Osaka, the country&rsquo s second largest city.

 

Thakral Corporation has reported FY2020 earnings of $6.5 million, down 28% over the preceding year. Revenue in the same period was down 16% to $90.1 million.

 

Thakral notes that its GemLife retirement home joint venture in Australia &ldquo did well beyond&rdquo its own internal forecast and enjoyed higher sales versus the previous year.

 

" GemLife benefitted from its superior product, excellent locations, brand goodwill and public awareness and also from steps taken by management to help residents cope with the pandemic," the company says.

 

GemLife bought four new sites in 2020 and has additional land to expand its current resort portfolio to over 2,400 homes. It has also taken new options to acquire more sites that will take it past its target of 4,000 homes.

 

Thakral owns a portfolio of offices and hotels in Japan as well, and the latter is hit by the pandemic. On the other hand, it managed to improve rental revenues at the office properties. 

 

&ldquo The group will maintain a prudent approach while exploring options for alternate uses to boost long-term returns from its hotel investments. It will also consider divesting some properties at the right price to recycle capital for future acquisitions,&rdquo the company says.

 

The company, which runs a lifestyle products business in China and Hong Kong, enjoyed a rebound in the second half of the year.

 

Thakral&rsquo s chairman Natarajan Subramaniam is &ldquo pleased&rdquo with the company&rsquo s results, given the challenges faced during the year. &ldquo We have stayed profitable in FY2020, which is testimony of the strength and success of our strategies,&rdquo he says.

 

As at Dec 31 2020, the company&rsquo s net asset value was 113.03 cents, versus 103.37 cents as at Dec 31 2019.

 

The company plans to pay an interim dividend of two cents. 

MAINBOARD-LISTED Thakral Corporation has acquired 13.4 hectares of land in New South Wales, Australia, through its   GemLife joint venture for an undisclosed sum. 

 

Located in Lake Cathie, the land will be developed into a lifestyle resort for people over the age of 50, expanding GemLife' s portfolio to 10 resorts.

 

GemLife is a 50:50 joint venture with the Puljich family, which has a 30-year track record of building and running retirement resorts across Australia, Thakral Corp said in a press statement on Monday.

 

Named GemLife Rainbow Beach, the resort will comprise 179 homes upon completion, bringing the total number of residences under GemLife' s umbrella to over 2,200.

 

Civil works and construction are expected to start in the first quarter of 2021, with the first homes ready by the fourth quarter of the same year, Thakral Corp said.

 

The resort is said to be near shopping centres, medical facilities, public transport and entertainment venues.

 

Thakral Corp' s group chief executive and executive director, Inderbethal Singh Thakral, said the group' s investment in GemLife remained " robust" despite the Covid-19 pandemic and is expected to deliver " sustainable and positive returns over the long term" .

 

" Research shows that the number of persons aged 65 and above is set to almost double in Australia over the next two decades. Baby boomers are now not just looking for a home, but a lifestyle for them to spend their golden years," he added.

 

Greggory Piercy, director of GemLife and joint managing director of Thakral Capital Australia, said the new resort is an " attractive and unique investment opportunity in beachside living in a subtropical environment" .