Jollibee [JFC 240.20, downn 0.3%; 62% avgVol] [link] mentioned that it offered its 30% stake in C-Pleasure Poultry Realty (CJ Land) to Agrotex Commodities for a complete consideration of P33.8 million in money. This transaction totally divests JFC of its curiosity in CJ Land, which owns the land beneath the services utilized by C-Pleasure Poultry Meats Manufacturing (CJ Manufacturing). JFC will retain its 30% stake in CJ Manufacturing, which is a partnership between Cargill and JFC for the processing and manufacturing of meals merchandise for JFC’s shops. JFC mentioned that it made the transfer as a part of its “shift towards an asset-light enterprise mannequin, enabling higher capital effectivity and sharper give attention to scalable, high-return investments”.
MB bottom-line: I’ve a humorous feeling that this pivot by JFC in the direction of an asset-light mannequin was the company wind that stuffed the sails of the speak of the DoubleDragon / JFC industrial REIT (JREIT) that we first heard about in 2021. Maybe JREIT was presupposed to catch all the bodily areas owned by JFC, plus roll up a bunch of warehouse belongings owned by DD (all the CentralHub stuff), and preserve all the capital recycling “in community” beneath the DD/JFC umbrella. I’m undecided if this deal signifies that plan is for positive not taking place, for the reason that purchaser (Agrotex Commodities) seems to be an unrelated third get together, however the worth quantity is tiny so possibly it was simply simpler to promote it shortly to pleasant arms somewhat than anticipate some strategic resolution that’s now 4 years late in coming.
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