Low Keng Huat (Singapore)

Quote:However, if we calculate using the maximum plot ratio of 10.5, the purchase price will be around S$1,056 psf after addition the S$140 million development charge.

I think the lettable area is 674000 + 200000 = 874000.
Therefore price should be $1498psf.

To realise the full area, the owner probably needs to pay $300psf to construct the 200,000 sqft of area.
Cost = $60 million.
So final price = $1567psf?
For a lease of 68 years left, it looks reasonable?

Quote:There are some 600 carpark lots in the basement levels.

Well... this might reduce to boost the lettable area?

I forgot to add that in most probability LKH will get the construction project which will be good as their other projects is winding down. The amt is not big and they will need another mega project for their construction biz in the next few yrs.

(03-02-2015, 06:54 AM)yeokiwi Wrote:

Quote:However, if we calculate using the maximum plot ratio of 10.5, the purchase price will be around S$1,056 psf after addition the S$140 million development charge.

I think the lettable area is 674000 + 200000 = 874000.
Therefore price should be $1498psf.

To realise the full area, the owner probably needs to pay $300psf to construct the 200,000 sqft of area.
Cost = $60 million.
So final price = $1567psf?
For a lease of 68 years left, it looks reasonable?

Quote:There are some 600 carpark lots in the basement levels.

Well... this might reduce to boost the lettable area?

what sort of possible recurring cash flow roughly are we looking at then from this purchase by LKH?

(03-02-2015, 06:37 PM)BlueKelah Wrote:

(03-02-2015, 06:54 AM)yeokiwi Wrote:

Quote:However, if we calculate using the maximum plot ratio of 10.5, the purchase price will be around S$1,056 psf after addition the S$140 million development charge.

I think the lettable area is 674000 + 200000 = 874000.
Therefore price should be $1498psf.

To realise the full area, the owner probably needs to pay $300psf to construct the 200,000 sqft of area.
Cost = $60 million.
So final price = $1567psf?
For a lease of 68 years left, it looks reasonable?

Quote:There are some 600 carpark lots in the basement levels.

Well... this might reduce to boost the lettable area?

what sort of possible recurring cash flow roughly are we looking at then from this purchase by LKH?

As indicated in the acquisition document, the recurring income is $4.2 million or 0.56 cts per share if no further value is added to the property.

thanks for the heads up, haven't bothered to go look at it yet.

Any bros here willing to share your estimates for coming quarter EPS?

(10-03-2015, 12:54 PM)slowandsteady Wrote: Any bros here willing to share your estimates for coming quarter EPS?

[b]Looks like something is boiling in the pot !
Right Question at the right time .
I'm equally curious :
What is your guess for its Div ?
Has any guru calculated, what is their profit for the Iconic Paya Lebar Square ?
Looks like this project may outdo :
CES' Alexzendra Central &
Wee Hur's Premier @ Kaki Bukit .... ??

This baby is on the run. I am expecting a div of 3cents+3cents spec div. Keep fingers cross for it to go >80 cents when results comes out soon.

Paya Lebar Square 80%Office space and 20% Mall .
Strata Titled Office alone :
Level 4 to 13, with 57 units per floor.
100% SOLD at $1,537 to $ 2,431 PSF
GFA 671,450 sft x 80%.
Land Cost $ 872 PPR

How do I calculate this ?
Is it reasonable to guess $200-250 mil of net profit from this office space alone ?

The LKH story is stale liao... main difference now is that $ made from other stocks are trying to recycle and hence the revisiting of an old story appears to be casting a new light on the company.

While it is true that LKH will be booking huge one-off profits from PL Sq and the DBSS project, it may not be as lucrative as many are hoping for. A friend tried to probe during the last AGM - nothing concrete but it seems that could be mid 100m.

Anyway, LKH mgt has planned well ahead to recycle the anticipated cashflows. Frankly buying Westgate from Capland after selling off PL Sq appears to be indicating their flexibility after somewhat reading the market "incorrectly" on PL Sq.

Last year, there was a disappointing omission of special dividends. Perhaps, LKH mgt is paving way for lower expectations pending the huge one-off accounting booking this year.

I have cashed out my LKH position accumulated mid 40s at mid 60s. Going forward, while I think that LKH have every reason to steer the group they are heading, the bleak outlook for Singapore property market leaves very little room for optimism and with the long term nature of their M'sian landbank together with their new model of rental income from increased holdings of investment properties, investors should be aligning their expectations with mgt's new positioning.

Hoping for one-offs in a changed outlook should be cautioned.

Odd Lots Vested
GG