Chip Eng Seng

http://ir.chartnexus.com/ces/announcement.php  

Chip Eng Seng adds a third hotel to its hospitality portfolio, The Sebel Mandurahnd a strata restaurant property, in Mandurah, Western Australia for AUD15 million.

Enbloc Acquisition of Changi Garden through Tender

Chip Eng Seng Corporation Ltd announced that CEL Real Estate Development Pte. Ltd., a wholly-owned subsidiary of the Company has successfully tendered for the enbloc acquisition of the property known as Changi Garden, which is located at the junction of Upper Changi Road North and Jalan Mariam.  Changi Garden presently has 84 residential and retail units.

The purchase price for the Property is $248.8 million ($888 psf per plot ratio), which was arrived at following internal evaluation.

The Property has a freehold tenure and a site area of 18,589.30 square metres. With a plot ratio of 1.4, it has a maximum allowable gross floor area of  6,025.02 square metres. The Company intends to redevelop the Property into a low-rise residential condominium with full condominium facilities.  The Proposed Redevelopment is expected to yield approximately 320 residential units and potentially some retail shops.

The Acquisition and the Proposed Redevelopment will be funded by internal resources and bank borrowings.

(12-06-2016, 11:42 PM)Curiousparty Wrote: How much does CES need to compensate buyers of TM project if project is delayed beyond the sunset clauses?

Seems like Tower Melbourne is finally cancelled. Purchasers will be paid back their 10% deposit + interest accrued.

http://infopub.sgx.com/FileOpen/Tower%20...eID=476650

(04-11-2017, 03:41 PM)weijian Wrote:

(12-06-2016, 11:42 PM)Curiousparty Wrote: How much does CES need to compensate buyers of TM project if project is delayed beyond the sunset clauses?

Seems like Tower Melbourne is finally cancelled. Purchasers will be paid back their 10% deposit + interest accrued.

http://infopub.sgx.com/FileOpen/Tower%20...eID=476650

I wuz talking about this issue a year or so ago, looks like it came true. 

Looks like Colonial Range Chow won by attrition lol... Wonder if they will try to use a third party to buy the CES site
That would really be something!!

Back to 60c level once all this renewed hoohah for property stocks and "en-bloc" fever is over.

Congrats to bros vested so far for a nice probably 20-30% profits during the recent run up, there has been calls for property counters to sink down, weirdly with price levels predictions such as 60 cents,70 cents for CES (I been investing for quite some time and I dun dare to say I can predict prices!)

But with STI lagging major indices, I think there is still room for upward momentum, though with US markets so high, risk of a correction is increasing everyday

Chip Eng Seng Q3 profit more than doubles on Aussie property disposal
06 Nov 2017 09:00
By Jamie Lee
leejamie@sph.com.sg

PROPERTY and construction firm Chip Eng Seng on Friday said that net profit for the third quarter more than doubled on a disposal gain as revenue rose. Net profit for the three months ended Sept 30 stood at S$14.05 million, up from S$5.71 million the same period a year ago. This translated to earnings per share of 2.26 Singapore cents, up from 0.92 Singapore cents.

The firm recorded a gain from the disposal of an office building at 420 St Kilda Road in Melbourne, Australia.

Revenue also rose 37.8 per cent to S$209 million. In the area of property development, revenue more than doubled from S$67.9 million to S$146 million due to revenue derived from the progressive recognition of High Park Residences. A pickup in sales at Fulcrum along Fort Road and the start of revenue recognition from Grandeur Park Residences also helped contribute to stronger sales, the firm said.

Revenue from the construction segment fell 31.9 per cent to S$50.4 million. This was due largely to lower revenue recognised from a project in Tampines, and the absence of revenue recognised from construction projects in Bukit Batok and Sembawang. The decline was partially offset by contributions from the two new Bidadari projects.

The group also made a further and final provision of S$4.5 million for "foreseeable losses" linked to a construction project, saying that it does not expect any further significant provision for such losses from its existing construction projects.
"The group will continue to look for opportunities to further replenish its land bank in Singapore," it said.

Shares of Chip Eng Seng closed at S$0.955 on Friday, down 1.5 Singapore cents.


Source: Business Times

(05-11-2017, 10:10 AM)BlueKelah Wrote:

(04-11-2017, 03:41 PM)weijian Wrote:

(12-06-2016, 11:42 PM)Curiousparty Wrote: How much does CES need to compensate buyers of TM project if project is delayed beyond the sunset clauses?

Seems like Tower Melbourne is finally cancelled. Purchasers will be paid back their 10% deposit + interest accrued.

http://infopub.sgx.com/FileOpen/Tower%20...eID=476650

I wuz talking about this issue a year or so ago, looks like it came true. 

Looks like Colonial Range Chow won by attrition lol... Wonder if they will try to use a third party to buy the CES site
That would really be something!!

Back to 60c level once all this renewed hoohah for property stocks and "en-bloc" fever is over.

The termination of the sale contracts is not expected to have significant impact on the net tangible assets and earnings per share of the Company for the current financial year ending 31 December 2017. 
 
The Company is concurrently exploring other viable exit options with regard to the Property, which includes offering the Property for sale.

(06-11-2017, 12:40 PM)Ray168 Wrote:

(05-11-2017, 10:10 AM)BlueKelah Wrote:

(04-11-2017, 03:41 PM)weijian Wrote:

(12-06-2016, 11:42 PM)Curiousparty Wrote: How much does CES need to compensate buyers of TM project if project is delayed beyond the sunset clauses?

Seems like Tower Melbourne is finally cancelled. Purchasers will be paid back their 10% deposit + interest accrued.

http://infopub.sgx.com/FileOpen/Tower%20...eID=476650

I wuz talking about this issue a year or so ago, looks like it came true. 

Looks like Colonial Range Chow won by attrition lol... Wonder if they will try to use a third party to buy the CES site
That would really be something!!

Back to 60c level once all this renewed hoohah for property stocks and "en-bloc" fever is over.

The termination of the sale contracts is not expected to have significant impact on the net tangible assets and earnings per share of the Company for the current financial year ending 31 December 2017. 
 
The Company is concurrently exploring other viable exit options with regard to the Property, which includes offering the Property for sale.

if you look back to end 2012 and before, post GFC after recovery of share price in 2009, CES was trading around 40c to 50c and not doing much, it was not until CES started preselling TM units(albeit without even getting planning approval yet), that the share price started to really see some action and within couple months shot up to a high 89c in early Feb 2013. Of course during this time there were SBB, insider buys and pretty good results announced. 

However I think that sudden spike was due a lot to excitement surrounding the TM project and sales and CES big move into Aussie property market which was slated to be booming with all the Chinese players going in and expectations of success there back in 2013.

In 2015 when they announced sale of the other undeveloped site and started having protracted legal battle with colonial range, share price from 90c+ did a big drop back to 60c+ level.
 
Price has been range bound as well 60c-70c past year as court case has dragged on and local property market conditions/expectations not too hot until recent months.

Thus for CES a lot of the share price action I believe was linked to its Australian development expectations/hype.

Much like the run up in share price of some stocks when they announce they gonna have an overseas IPO or some new growth/expansion into overseas markets.

The current market expectation is local conditions improving as we have been in a few years of slump but that will depend on the economy going forward. No doubt we have experienced some impressive growth this year in manufacturing and NODX but will this continue into next year? Will all the en-bloc happy developers suffer if the economy takes a turn?

Don't know much about property analysis and relied instead on the insight generously shared by sumer in another forum.
I took a position in CES after I read this: https://www.nextinsight.net/story-archiv...sh-and-ces

Felt Singapore property is a reflection of Singapore story. Will Singapore continue to be a hub for the new age economy?

Many stocks have their admirers and detractors, and CES is no different. But with SBL and other shorting methods, we don't really know if negative prognosis of a counter is with or without vested interest.

I don't think CES' rise and fall was due to TM alone. There could be perhaps some effect but I think the positive side of it has already come and gone a couple of years ago. The recent surge in CES looks like genuine accumulation and for good reasons (none of it is due to TM): its clearing of old stock Fulcrum, sales at Grandeur, potential of Woodleigh site, revaluation surplus at Park Hotel Alexandra, and of course proven management's acumen in the business and generosity in sharing profits.                       

Add to all that, a RNAV of about $1.80 and a dividend yield of above 4% certainly explain CES' price trend. TM has been a written off story for a while now and I don't think CES' current share price has any of its glitter or dust on it.