Metro Holdings

(16-06-2015, 10:16 PM)greengiraffe Wrote: http://infopub.sgx.com/FileOpen/MHLFUNDI...eID=356102

Metro getting into a NF led investment fund - with a ah long mandate...

Long absence - ie the ah long mkt may be back again in China. 1st sponsor has seen their high interest financing book growing rapidly...

Metro was already involved in the 1st infrared NF fund, but that was investing more in equity i.e. buying the various malls.
This fund seems to be focussed on mezzanine debt instead.
relatively safer but with lower returns perhaps?

<vested>

DIVESTMENT IN THE ORDINARY COURSE OF BUSINESS BY METRO
HOLDINGS LTD’S WHOLLY-OWNED SUBSIDIARY, ZENSEI TOKUTEI
MOKUTEKI KAISHA OF FRONTIER KOISHIKAWA BUILDING, TOKYO

Metro Holdings Limited (“Metro” or the “Company”) wishes to announce
that Zensei Tokutei Mokuteki Kaisha (“ZTMK”), its indirect wholly-owned
subsidiary, has entered into a Sale and Purchase Agreement (“SPA”) to
sell its interest in the office building, Frontier Koishikawa building in Tokyo,
Japan (the “Property”) to an independent and unrelated party (the
“Divestment”). ZTMK is wholly-owned by Kowa Property Pte Ltd and
Bunkyo Property Pte Ltd, both wholly-owned subsidiaries of Metro Prop
Japan Pte Ltd (“Metro Prop Japan”). Metro Prop Japan is a wholly-owned
subsidiary of Metro Holdings (Japan) Pte Ltd, who in turn is a whollyowned
subsidiary of the Company.

(18-07-2015, 05:36 PM)GFG Wrote: DIVESTMENT IN THE ORDINARY COURSE OF BUSINESS BY METRO
HOLDINGS LTD’S WHOLLY-OWNED SUBSIDIARY, ZENSEI TOKUTEI
MOKUTEKI KAISHA OF FRONTIER KOISHIKAWA BUILDING, TOKYO

Metro Holdings Limited (“Metro” or the “Company”) wishes to announce
that Zensei Tokutei Mokuteki Kaisha (“ZTMK”), its indirect wholly-owned
subsidiary, has entered into a Sale and Purchase Agreement (“SPA”) to
sell its interest in the office building, Frontier Koishikawa building in Tokyo,
Japan (the “Property”) to an independent and unrelated party (the
“Divestment”). ZTMK is wholly-owned by Kowa Property Pte Ltd and
Bunkyo Property Pte Ltd, both wholly-owned subsidiaries of Metro Prop
Japan Pte Ltd (“Metro Prop Japan”). Metro Prop Japan is a wholly-owned
subsidiary of Metro Holdings (Japan) Pte Ltd, who in turn is a whollyowned
subsidiary of the Company.

Got an accounting related question about this if there're any pros here that can answer:

"The SPA provides for the sale of the Property for JPY5.22 billion
(equivalent to approximately S$57.7 million)."
"As at 31 March 2015, the Property was carried in the balance sheet of
ZTMK at its valuation of JPY4.79 billion (equivalent to approximately
S$54.8 million)."

"The Divestment of the Property by ZTMK is expected to result in a gain on disposal of investment property estimated at S$4.0 million (net of charges) which will be recognized on completion of the SPA."

Why is the gain on disposal $4mil?
Shouldn't it be 57.7mil - 54.8mil = $2.9mil?
Is it related to currency conversions etc? But even then, the conversion rate should be constant and current right

http://www.valuebuddies.com/thread-270-p...l#pid11488

Wah lau... this is super conjob... the Japanese building was acquired for almost S$90m and now sold for S$57.7m for a profit...

They really have been writing off against the many one-off gains made over the years and now can make profit on selling.

Odd Lots Vested
GG

(18-07-2015, 06:08 PM)GFG Wrote:

(18-07-2015, 05:36 PM)GFG Wrote: DIVESTMENT IN THE ORDINARY COURSE OF BUSINESS BY METRO
HOLDINGS LTD’S WHOLLY-OWNED SUBSIDIARY, ZENSEI TOKUTEI
MOKUTEKI KAISHA OF FRONTIER KOISHIKAWA BUILDING, TOKYO

Metro Holdings Limited (“Metro” or the “Company”) wishes to announce
that Zensei Tokutei Mokuteki Kaisha (“ZTMK”), its indirect wholly-owned
subsidiary, has entered into a Sale and Purchase Agreement (“SPA”) to
sell its interest in the office building, Frontier Koishikawa building in Tokyo,
Japan (the “Property”) to an independent and unrelated party (the
“Divestment”). ZTMK is wholly-owned by Kowa Property Pte Ltd and
Bunkyo Property Pte Ltd, both wholly-owned subsidiaries of Metro Prop
Japan Pte Ltd (“Metro Prop Japan”). Metro Prop Japan is a wholly-owned
subsidiary of Metro Holdings (Japan) Pte Ltd, who in turn is a whollyowned
subsidiary of the Company.

Got an accounting related question about this if there're any pros here that can answer:

"The SPA provides for the sale of the Property for JPY5.22 billion
(equivalent to approximately S$57.7 million)."
"As at 31 March 2015, the Property was carried in the balance sheet of
ZTMK at its valuation of JPY4.79 billion (equivalent to approximately
S$54.8 million)."

"The Divestment of the Property by ZTMK is expected to result in a gain on disposal of investment property estimated at S$4.0 million (net of charges) which will be recognized on completion of the SPA."

Why is the gain on disposal $4mil?
Shouldn't it be 57.7mil - 54.8mil = $2.9mil?
Is it related to currency conversions etc? But even then, the conversion rate should be constant and current right

(18-07-2015, 09:06 PM)greengiraffe Wrote: http://www.valuebuddies.com/thread-270-p...l#pid11488

Wah lau... this is super conjob... the Japanese building was acquired for almost S$90m and now sold for S$57.7m for a profit...

They really have been writing off against the many one-off gains made over the years and now can make profit on selling.

Odd Lots Vested
GG

(18-07-2015, 06:08 PM)GFG Wrote:

(18-07-2015, 05:36 PM)GFG Wrote: DIVESTMENT IN THE ORDINARY COURSE OF BUSINESS BY METRO
HOLDINGS LTD’S WHOLLY-OWNED SUBSIDIARY, ZENSEI TOKUTEI
MOKUTEKI KAISHA OF FRONTIER KOISHIKAWA BUILDING, TOKYO

Metro Holdings Limited (“Metro” or the “Company”) wishes to announce
that Zensei Tokutei Mokuteki Kaisha (“ZTMK”), its indirect wholly-owned
subsidiary, has entered into a Sale and Purchase Agreement (“SPA”) to
sell its interest in the office building, Frontier Koishikawa building in Tokyo,
Japan (the “Property”) to an independent and unrelated party (the
“Divestment”). ZTMK is wholly-owned by Kowa Property Pte Ltd and
Bunkyo Property Pte Ltd, both wholly-owned subsidiaries of Metro Prop
Japan Pte Ltd (“Metro Prop Japan”). Metro Prop Japan is a wholly-owned
subsidiary of Metro Holdings (Japan) Pte Ltd, who in turn is a whollyowned
subsidiary of the Company.

Got an accounting related question about this if there're any pros here that can answer:

"The SPA provides for the sale of the Property for JPY5.22 billion
(equivalent to approximately S$57.7 million)."
"As at 31 March 2015, the Property was carried in the balance sheet of
ZTMK at its valuation of JPY4.79 billion (equivalent to approximately
S$54.8 million)."

"The Divestment of the Property by ZTMK is expected to result in a gain on disposal of investment property estimated at S$4.0 million (net of charges) which will be recognized on completion of the SPA."

Why is the gain on disposal $4mil?
Shouldn't it be 57.7mil - 54.8mil = $2.9mil?
Is it related to currency conversions etc? But even then, the conversion rate should be constant and current right

Yes, it was acquired in FY11Q1 for 89mil +, and over the yrs the value has been written down till current 50+ mil
This is not a great investment
To be fair, I will point out that management has indeed succeeded in bringing the occupancy up gradually every yr from 50+% to a full 100%
Still the value has dropped largely because
1) real estate in Japan has dropped generally
2) yen has depreciated a lot against the sgd
The recent 2 years, the valuation in yen actually INCREASED, but in Sgd it dropped

This shows the uncertainty in venturing into new markets
Metro has experience in Chinese markets, not in Japan

The other positive I can take from this is that the entire 56mil will pretty much pay off all of metros bank borrowings, both current and non current
This frees metro up to take on other opportunities that may come by

(Vested)
Still not sure why 4mil profit n not 2.9mil though

Hi GFG,

My guess is the 4 m profit could well include de-recognition of certain liabilities - like reversal of deferred tax liability or something of similar nature.

(not vested)

(18-07-2015, 11:26 PM)Boon Wrote: Hi GFG,

My guess is the 4 m profit could well include de-recognition of certain liabilities - like reversal of deferred tax liability or something of similar nature.

(not vested)

JO will still enjoy some performance bonus from this small disposal gain. Not a bad deal at all.

Still able profit from the sale... not bad

(19-07-2015, 09:29 AM)cfa Wrote:

(18-07-2015, 11:26 PM)Boon Wrote: Hi GFG,

My guess is the 4 m profit could well include de-recognition of certain liabilities - like reversal of deferred tax liability or something of similar nature.

(not vested)

JO will still enjoy some performance bonus from this small disposal gain. Not a bad deal at all.

Thanks for the reply Boon

That's a problem with many of these "performance based remuneration"
If there are unprofitable deals with losses, shouldn't JO have to payback?
Only performance based remuneration deal that makes sense is if it's tagged to share price, and if it's fairly long term

Singapore, 11 November 2015 – Main Board-listed Metro Holdings Limited (“Metro”
or the “Group”) (“美罗控股有限公司”), a property development and investment group
backed by established retail operations in the region, registered a net profit of
S$18.6 million for the three months ended 30 September 2015 (“2QFY2016”), as
compared to S$60.6 million in the previous corresponding period (“2QFY2015”).
Revenue increased 22.3% to S$38.3 million, up from S$31.3 million over the same
period. The rise was mainly due to a higher turnover driven by the Retail Division’s
new Metro Centrepoint store in Singapore which commenced operations in the third
quarter of FY2015, as well as higher contribution from existing stores. High costs of
the new store led to the Retail Division recording an operating loss of S$2.1 million in
2QFY2016 from an operating loss of S$1.2 million in 2QFY2015.
METRO HOLDINGS REPORTS NET PROFIT OF S$18.6 MILLION AND REVENUE OF S$38.3 MILLION FOR 2QFY2016

- Lower bottomline mainly due to recognition of significant gains in the

previous corresponding period – Top Spring and EC Mall, Beijing

- Net gain of S$4.3 million from disposal of Frontier Koishikawa, Tokyo

- Maintains strong balance sheet with cash holdings of S$570.2 million

and shareholders’ equity of S$1.4 billion as at 30 September 2015


Results generally in line with expectations. As expected, pretty much all the long term bank loans has been cleared with the divestment of Frontier Building. Metro is now very cash rich, and deploying all that cash into the Infrared Fund II