Heeton Holdings

Cigar Butts: not sure where you got your figures but from 3rd quarter results:

Non-current asset: $496.6m
Current asset: $247.5m
Total asset: $744.1m

Current liability: $116m
Long term liability: $310.9m
Total liability: $426.9m

Net asset: $317.2m.

No of shares: 268.6m

NAV per share: $1.18

This does not include revaluation gain and future profit. Although Heeton revalue its assets every year (eg Tampines Mart) I think Sun Plaza potential higher value is not included, as well as maybe some gains in its overseas properties in London and Thailand.

Also potential profit from Lumos and Onze and its small stakes in many profitable projects.

All in, maybe $1.50 in RNAV.

Spouse of Mr Toh Gap Seng / Mr Toh himself purchased

15 january - 40,000 shares for $0.60 each
13 january - 70,000 shares for $0.60 each
7 january - 110,000 shares for $0.605 each
6 january - 100,000 shares for $0.6117 each
5 january - 90,000 shares for $0.604 each

Still holding.... <vested>

Sudden surge. Wonder if its privatisation. NAV $1.26 and even higher if some of its assets are revalued like Sun Plaza and future earnings from many JV and El Centro is considered.

mkt value of property holding company = 95m - 21m = $74m
sold for $4.

OPMI (me not vested) are screwed big time. 

http://infopub.sgx.com/FileOpen/Announce...eID=423276

2. DETAILS OF THE DISPOSAL
2.1 Consideration and Payment Terms
The consideration (“Consideration”) for the Disposal comprised a nominal amount of S$4 for
the purchase of the Sale Shares as well as S$21 million for the transfer of the shareholder’s
loan owing from Heeton Residence to the Company.

The Consideration was arrived at on a willing-buyer, willing-seller basis after taking into
account the adjusted net asset value of Heeton Residence and Heeton Realty as at date of
Completion, and the agreed property value at S$95 million for the Property.

On Completion, the Purchasers paid S$4 for the Sale Shares as well as S$4 million for the
subscription of junior notes in Heeton Residence which was used to partially discharge the
Consideration with the balance of S$17 million to be paid on 30 September 2017. (Still gives 1 year free financing)

As part of the transaction, the Company subscribed for $4 million senior notes in Heeton
Realty due 2019, which bears interest at 5% per annum. (Still provide financing for Buyers)

2.2 Valuation
The unaudited NTA at the consolidated financial statement level of the Company attributable
to the Disposal as at 31 August 2016 is approximately S$32 million.

There is no open market value for the Sale Shares and the shares of Heeton Realty as they
are not publicly traded. (RUBBISH!)

3. RATIONALE
The residential property market is not recovering due to various factors, including property
cooling measures, supply of new units to the market and the general macro-economic
conditions. Given current market conditions, the Consideration offered by the Purchasers for
Heeton Residence seemed reasonable and offered a viable exit option for the Company.

As the Disposal is in line with the Group’s ordinary course of business, Chapter 10 of the
Singapore Exchange Securities Trading Limited’s Listing Manual does not apply to the
Disposal. (If SGX dont query, the recent talk about corp gov is just hot air)

4. FINANCIAL IMPACT
The Disposal is expected to have a material negative impact on the earnings and but not
expected to have a material impact on net tangible assets per share of the Group for the
current financial year.

It's Heeton => 100% of Heeton Residences => 100% Heeton Realty


iLiv@grange is now valued around $95m
But as at FYDec2013, Heeton Realty have $88.4m bank loans, I dun know how much bank loans still outstanding today.
So it's not ($95m - $21m) sold for $4.
But given the shitty lacking disclosures thus far on this disposal, cannot blame OPMI or anyone else for drawing such a conclusion.


Clearly, the NewOwners  are getting a great deal, in that sense, minorities get screwed bigtime !!  ouch !!
On the other hand, had listed Heeton not make this disposal,
Year-2 QC penalty (16% or around $12m) for iLiv @grange will kicks in wef this very Oct2016, coz iLiv had already TOPed 3 yrs back in Oct2013.

still, some opmis need to go next year AGM and screw-up the BOD...
all their 100% controlled projects perform like Sh**, its only their JV projects that's making $$.


at $95m and based on buildup floor area of around 60,000 sqft for iLiv, it's sold for only $1583 psf.
Heeton actually paid over $1700 psfppr for the lands. when they make en bloc acquisition of the site back in 2007.

Beside the cheap price of $1583 psf for a freehold, Grange Road ppty,
Some more I suspect that by buying over the existing holding company, and not the physical ppty.
the NewOwners had this Three Advantages
1) No need to pay 15% ABSD.
have they have use a company eg. ABC-corp to buy over the physical ppty (iLiv), then another 15% ABSD is payable.

2) Since NewOwners are all Sporeans, QC penalty NO longer apply - so NO more selloff-entire-project deadline for them to meet.
   (like SimonCheong no longer have any deadline to sell off HillTops & TheMarq)

3) also No SSD penalty to stop new Owners from launching iLiv tomorrow, to sell off some units - if they so wishes
coz it will just be renamedHeetonRealty launching sales of units in its project iLiv@grange, for the very first time.

Had they use a new ABC-corp to buy over physical ppty (iLiv...),
then ABC corp will be subjected to a 16%-12%-8%-4% SSD, if it resell any units in iLiv@grange within the next 1-2-3-4 years.

SSD = Seller Stamp Duty
ABSD = Additional Buyer Stamp Duty

http://infopub.sgx.com/FileOpen/Announce...eID=446221

Any buddies with a better understanding of China property market able to comment on the potential impact of new special economic zone? Read some pretty crazy stuff about it on Bloomberg about how highways were jammed up with people rushing in physically, and investors sleeping outside property agencies overnight to rush for a purchase.

https://www.bloomberg.com/news/articles/...ve-rampage

(04-04-2017, 10:55 PM)slowandsteady Wrote: http://infopub.sgx.com/FileOpen/Announce...eID=446221

Any buddies with a better understanding of China property market able to comment on the potential impact of new special economic zone? Read some pretty crazy stuff about it on Bloomberg about how highways were jammed up with people rushing in physically, and investors sleeping outside property agencies overnight to rush for a purchase.

https://www.bloomberg.com/news/articles/...ve-rampage

From below report carried in TheEdge,
the implied "rumour profitability" for Gaobeidian Phase 1 alone amounts to some s$709m (derived from Oxley's 27.5% is $195m )

EXTRACTs from TheEdge Rpt
"" Caixin, the Beijing-based financial and business news, reported residential prices in places like Baoding shot up from RMB6,000 psm to RMB20,000 psm.
Local property agencies were also forced to close on Monday after the government introduced an emergency sales ban in response to a surge in interest.
The surge in property prices in Hebei and Sino-Singapore Health City is also likely to add significant value to the net asset values of the four JV partners even with the top-tier land appreciation tax of 60%.
According to market watchers, the earnings from the residential portion of Phase 1 alone would add $159 million to KSH’s earnings, and boost NAV by 35 cents per share. And although Oxley would get a $195 million boost, it would add just seven cents to NAV. Lian Beng’s NAV would get a 17 cents lift, and Heeton 16 cents.
On Tuesday, shares of KSH closed 8.5 cents higher at 63.5 cents; shares of Lian Beng closed 7.5 cents higher at 61.5 cents; shares of Heeton closed 2 cents higher at 39.5 cents while shares of Oxley closed 2.5 cents higher at 58.5 cents. ""


Here the link to the full report
http://www.theedgemarkets.com.sg/article...z-revealed

(04-04-2017, 10:55 PM)slowandsteady Wrote: http://infopub.sgx.com/FileOpen/Announce...eID=446221

Any buddies with a better understanding of China property market able to comment on the potential impact of new special economic zone? Read some pretty crazy stuff about it on Bloomberg about how highways were jammed up with people rushing in physically, and investors sleeping outside property agencies overnight to rush for a purchase.

https://www.bloomberg.com/news/articles/...ve-rampage

Not an expert on PRC property. Just an observer only....some thoughts. Read at own risk.

SZ took about 20-30 years to develop to the current state. 

Even a sub-zone in SZ like Qianhai is still developing. Went to look see QH in 2012. Empty piece of land with closed 2 MRT stations. Went there last year, can see a few skyscrapers completing soon.
But MRT stations still closed. 

Another development zone Nansha near GZ..supposedly the new economic centre of Pearl River Delta. went there in 2008+. Heard from friend, still the same...nothing much happened.

So the new XA NEZ will take some time. 

the PRC masses are crazy lemmings.....as shown in many cases...

^^^ Agree... theme vs timeline

The internet theme in 2000 was correct... we are seeing the fruits and results of e-commerce and connectivity. Problem was that Mr Market thought it could be delivered within 3-5 years

Heeton was mentioned on the edge. Can infer that they would make 17.4c from High Park Residences if the assumption for chip eng seng is correct. for Gaobeidian, analysts had earlier estimated that they could make 16 to possibly 38c for that project?