OKH Global (formerly: Sinobest)

Don't confuse this with OKP!

The Straits Times
www.straitstimes.com
Published on May 07, 2013
Industrial property developer debuts on SGX today

By Alvin Foo

INDUSTRIAL property developer OKH Global is making its trading debut on the Singapore Exchange mainboard today following a recent reverse takeover of Sinobest, a loss-making Chinese technology firm.

OKH specialises in developing premium industrial properties such as the A'Posh BizHub in Yishun which was completed last year.

Its business mainly revolves around property development, providing construction services and large-scale alteration and addition works.

As of Dec 31 last year, OKH Holdings had pre-sold projects worth $317.4 million.

OKH executive chairman and chief executive Thomas Bon said: "We're a company which can build cheap, build fast and sell fast."

He said the decision to list was to enable the firm to attract top talent, boost its corporate image and position it for overseas expansion. Its main focus is on developing industrial property projects here.

OKH is also looking at replicating its Singapore model of developing industrial properties on a large scale in China and Malaysia, although nothing concrete has been firmed up.

Construction capabilities also give OKH a competitive edge.

"It gives me full control of the resource allocation and the project pace. Construction has been my expertise," said Mr Bon.

Its A'Posh project was completed in 18 months instead of the usual 22 to 24 months.

OKH has been on the acquisition trail for industrial land.

In February, it completed the acquisition of an industrial property at 5 Pioneer Sector Lane for $8.38 million.

Late last month, it clinched a JTC tender for a 30-year land parcel of 17,681 sq m at Buroh Crescent for about $39 million.

Existing projects include the Primz BizHub and Woodlands Horizon, adjacent sites offering around 1.06 million sq m of industrial space in total.

A recent compliance share placement exercise of 126.772 million vendor shares at 24 cents each attracted several prominent investors, such as former UOB Kay Hian stockbroker Han Seng Juan, and managing director of mainboard-listed Tai Sin Electric Bobby Lim Chye Huat.

alfoo@sph.com.sg

http://infopub.sgx.com/FileOpen/Award_of...eID=260499

Quote:

The Board of Directors of OKH Global Ltd. (the “Company”, and together with its subsidiaries, collectively the “Group”) wishes to announce that the Company’s wholly-owned subsidiary, OKH Holdings Pte. Ltd., has been awarded the contract amounting to S$32,800,000 in relation to the design and build for the proposed new erection of a 4-storey warehouse with ramp up facilities at No. 7 Pioneer Sector Lane, by Nam Leong Co Pte. Ltd. (the “Project”).

The Project is in the ordinary course of the business of the Company and the Group. The Project is expected to be funded entirely through internal resources.

The Project is expected to have a positive impact on the consolidated net tangible assets per share and consolidated earnings per share of the Group for the financial year ending 30 June 2014.

(not vested)

Property developer, OKH Global, is announcing its is in discussion with redeemable securities holder to change terms. Given their 11% note is due in March 2016, it seems OKH has difficulty redeeming.

OKH's stated NAV is 18 cents, while its share price has fallen 85% from 62 cents to 7.8 cents. Given that most of their properties are industrial estates in Singapore, is there any liquidation value among its 6 properties? It seems market is now discounting its stated property value by 20%.

If the company is in need of money, pherhaps they can go to Moolahsense for a loan. I don't mind lending them at 16% pa if they offer me one of their properties/personal guarantee by chairman etc as collateral

<vested at 7.7 cents hoping on asset stripping idea>

http://infopub.sgx.com/FileOpen/_eFORM1_...eID=394716

The reason for today's fall is has been made known. Financial institutions force sold 119,801,800 of the chairman's shares. This explains for 50% of the volume. With the 80% fall today, I think there may be further margin calls as people are likely to have bought it at 10 cents or above. IMO, expect another 20 mil shares being force sold

(21-03-2016, 11:12 PM)CY09 Wrote: http://infopub.sgx.com/FileOpen/_eFORM1_...eID=394716

The reason for today's fall is has been made known. Financial institutions force sold 119,801,800 of the chairman's shares. This explains for 50% of the volume. With the 80% fall today, I think there may be further margin calls as people are likely to have bought it at 10 cents or above. IMO, expect another 20 mil shares being force sold

Based on the AR2015, CEO Bon has 175 millions pledged in various financial institutions. 120 million force sold still left with 55 millions share with the financial institutions. Look like there are more selling pressures to come, at least majority of the selling pressures are gone. 

"Mr Bon Ween Foong is deemed to be interested in the 100,000,000 shares pledged to UBS AG Singapore, 45,000,000 shares pledged to Bank Julius Baer and 30,000,000 shares pledged to Credit Agricole (Suisse) SA, which are registered under his
name."

Not vested but watching

This whole episode served to show what can happen when you get "margin called".

Nevertheless, I have taken the chance to exit at 0.089. It was a fun ride but industrial property landscape is one area I do not want to invest much (esp when OKH was only able to sell less than 30% of their new projects). Just want to thank financial institutions for giving me such a chance of a trading gain.

If OKH boss requires a quick loan, feel free to pm me here. 16% interest loan

I'm just wondering, when the shares get force-sold, who's buying?
That's a lot of shares for the open market to absorb right?

So, question is. Is whoever is on the other side of the trade seeing something that the market doesn't?

The banks themselves can buy from the force-sale. Gets a big chunk of the company at dirt cheap price and a huge amount of shares where they can use to their advantages.

(22-03-2016, 10:24 AM)CY09 Wrote: This whole episode served to show what can happen when you get "margin called".

Nevertheless, I have taken the chance to exit at 0.089. It was a fun ride but industrial property landscape is one area I do not want to invest much (esp when OKH was only able to sell less than 30% of their new projects). Just want to thank financial institutions for giving me such a chance of a trading gain.

If OKH boss requires a quick loan, feel free to pm me here. 16% interest loan

after some digging i come to the conclusion that the sales for their two new projects, ace buroh and loyang enterprise is well above 30%. ace buroh is quite well sold. 
i came to this conclusion from a combination of looking at listings on property portals, crossing out double listings, checking with listed agents, and statistics from JTC/ URA.

to put across a simple stats. For industrial projects that are completing in 2016 ( a category loyang enterprise fall into), the number of unsold units is only about 194 for the whole market in east, central and northeast region(yes jtc has this wierd classification), which has 23 projects. so on average each project has 8 unsold units. even if we assume that loyang enterprise is so lousy that it underperforms by a margin of 200%, thats 24 unsold units, out of about 100 units for the whole project. thats still 75 % sold. 

most of the unsold industrial properties in Singapore are in the north! 1400 /2000 unsold units. neither ace buroh or loyang is in the north.

will any other valuebuddies will like to take up the challenge to try and get to their estimates? or share how they will approach this!

(22-03-2016, 04:12 PM)GPD Wrote: The banks themselves can buy from the force-sale.  Gets a big chunk of the company at dirt cheap price and a huge amount of shares where they can use to their advantages.

Banks by virtue of their banking license are not allowed to be involved in non core biz. Thats why they spinned off UOL and Keppel land and capitaland many years back.

Also, major conflict of interest if they are seen to take advantage of  their disstressed clients.