Lian Beng

[financialfreedom]

Thanks for all your explanation. I will work harder to study all these things.

[cyclone]

Lian Beng and JV partner to acquire Wilkie Edge for S$280 million

Highlights :
1. Wilkie Edge is a leasehold 12-storey development with a balance lease of 88 years comprising retails, office and two basement car parks of 215 lots
2. At gross floor area and net lettable area of 215,435 sqft and 154,528 sqft respectively, purchase price works out to be S$1299 per sqft (“psf”) and S$1812 psf respectively
3. Wilkie Edge enjoys high occupancy of approximately 99%
4. Proposed acquisition will further enlarge Group’s local property investment portfolio and improve Group’s recurring income
5. Wilkie Edge Gross Revenue was S$3.5 million (1Q 2017)
6. Wilkie Edge Net Property Income was S$2.5 million (1Q 2017)

More details in http://infopub.sgx.com/FileOpen/Acquisit...eID=459956

[luckystar]

2 big catalyst coming up.. Hexcube and mandai foodlink TOP this year.

Hi, Catalyst or not, can't understand why this counter selling so cheap: less than 1/2 NAV with strong balance sheet. And recent year dividend 3cents, meaning dividend yield around 6%.

I remember a few years ago MP Sitoh YiPing left the Lian Beng Board because he said the management, including Mr Ong Pang Aik and all his siblings paid themselves too much. The profit sharing incentives and categorisation, formulae are too generous. As you can see for yourself the remuneration for the senior management in the annual reports, the family is taking a lot.

[opmi]

well, someone has to pay for the Roll-Royce...

[d.o.g.]

I remember a few years ago MP Sitoh YiPing left the Lian Beng Board because he said the management, including Mr Ong Pang Aik and all his siblings paid themselves too much. The profit sharing incentives and categorisation, formulae are too generous. As you can see for yourself the remuneration for the senior management in the annual reports, the family is taking a lot.

One of the key points of the disagreement was that the Ong family's profit sharing was calculated on a "profit before tax" basis. However this did not account for minority interests which were significant. What this meant was that Lian Beng shareholders paid the family a bonus for profits that belonged to the minority interests in the JVs.

As an example, if there was a 50/50 JV, its profits were counted at 100% in profit before tax, and Lian Beng shareholders paid a bonus on that basis, but in fact half of the JV's profits belonged to the JV partner. Essentially, Lian Beng shareholders subsidized the JV partner by paying the partner's share of the profit-sharing bonus.

The Ong family was legally entitled to stick to the "profit before tax" basis, as that was how it was written in their compensation agreements. But once this issue was pointed out, the ethical thing to do would be to revise the compensation agreements so that profits from non-fully owned projects were pro-rated accordingly. AFAIK that has not happened.

As usual, YMMV.

[cyclone]

80% x A$34,000,000 = A$27,200,000

Proposed Disposal of Property in Melbourne by Subsidiary

Lian Beng Group Ltd announced that Lian Beng (St Kilda) Pty Ltd, a wholly-owned subsidiary of Goldprime Realty Pte. Ltd., it's 80%-owned subsidiary, had entered into a contract of sale with unrelated third party for the proposed disposal of the property at Units 1 to 19 of 596 St Kilda Road, Melbourne, Australia.

The property is a freehold property with a total site area of approximately 1,803.6 sq m, with a three storey residential complex comprising 19 separately titled apartments. The property is situated on the southern precinct of St Kilda Road, having two street frontages.

The aggregate sale consideration for the disposal of Property is A$34,000,000.

More details in http://infopub.sgx.com/FileOpen/Proposed...eID=463642

[cyclone]

Financial Results for the Financial Year ended 31 May 2017 ("FY2017")

Highlights :
1. FY2017 revenue decreased by 36.8% to $281.7 million mainly due to the decrease in revenue from the Construction and Ready-mixed Concrete business segments
2. The Group's FY2017 gross profit increased 33.5% to S$74.9 million for FY2017
3. Lian Beng achieves FY2017 profit to shareholder of S$53.2 million
4. The Group proposes final dividend of S$0.0125 per share; including interim dividend of S$0.01 per share, total dividend will be S$0.0225 per share
5. Maintains strong financial position with cash and cash equivalents of S$187.8 million as at 31 May 2017
6. Construction order book of approximately $538 million to-date offers steady flow of activity through FY2020
7. The Group will continue exploring business expansion through local or overseas acquisition, joint venture and/or strategic alliances that complement its construction, property development and investment business.

More details in :
1. http://infopub.sgx.com/FileOpen/Results....eID=464006
2. http://infopub.sgx.com/FileOpen/Press%20...eID=464007

[cyclone]

Proposed Acquisition of Property at 381 Joo Chiat Road, Singapore  Known As OCN Building

Lian Beng (Joo Chiat) Pte. Ltd., a whollyowned subsidiary of Lian Beng Group Ltd had on 12 March 2018 accepted the option to purchase granted by TTAT Investment Pte. Ltd. ("Vendor"), for the proposed acquisition of property at 381 Joo Chiat Road, Singapore 427621 from the Vendor for an aggregate purchase consideration of S$27 million plus goods and service tax.

The property is A 4-storey commercial building with attic and basement car park, comprised in Lot 9382L of Mukim 26, at 381 Joo Chiat Road, Singapore 427621, known as OCN Building with a gross floor area of approximately 2,296 sq m.

More details in http://infopub.sgx.com/FileOpen/Joo%20Ch...eID=492520

[cyclone]

Lian Beng’s 50%-owned JV company to acquire Sembawang Shopping Centre for S$248 million

Highlights :
1. Located at 604 Sembawang Road, Singapore 758459
2. Sembawang Shopping Centre is a suburban mall consisting of four retail levels and three car park levels with a total of 165 car park lots
3. This property has a leasehold tenure of 999 years, a gross floor area of 206,087 sq ft (S$1,203 per sq ft) and a total net lettable area of 143,631 sq ft (S$1,727 psf)
4. Current committed occupancy is 99% with key tenants such as Cold Storage, Yamaha, Auric Pacific and Daiso
5. Group believes rental returns from this property investment project will add to Group’s earnings.

Lian Beng-Apricot (Sembawang) Pte. Ltd., a 50-50 joint venture company of Lian Beng Group Ltd (联明集团) has entered into a sale and purchase agreement with HSBC Institutional Trust Services (Singapore) Limited as trustee of CapitaLand Mall Trust for the proposed acquisition of Sembawang Shopping Centre for an aggregate purchase consideration of S$248 million.

More details in :
1. http://infopub.sgx.com/FileOpen/Proposed...eID=499745
2. http://infopub.sgx.com/FileOpen/PressRel...eID=499746

[weijian]

Looking at the same PR from Capital Land Mall Trust, Lianbeng and partner are buying at close to 100% premium on the last valuation as of Dec 2017. Granted the last valuation has been ~4months and this was done via a "bidding process", but what is the reason/prompt by the JV to buy at this premium?

CapitaLand Mall Trust Management Limited (CMTML), the manager of CapitaLand Mall Trust (CMT), announced today that CMT, through its trustee HSBC Institutional Trust Services (Singapore) Limited, has entered into an agreement to sell Sembawang Shopping Centre to a joint venture between Lian Beng Group Ltd and Apricot Capital Pte. Ltd. for S$248.0 million.

Based on the latest independent valuation, Sembawang Shopping Centre was valued at S$126.0 million as at 31 December 2017. The divestment is expected to generate net proceeds of about S$245.6 million and a net gain of about S$119.6 million when the transaction is completed by June 2018.

http://infopub.sgx.com/FileOpen/News_Rel...eID=499743