Isetan Singapore

(28-03-2015, 03:02 AM)bchang Wrote:

(27-03-2015, 07:31 PM)opmi Wrote: ^^ don't know if REDEVT is a special resolution in MCST.

Extracted from a DBS broker report from Jan 15 on Starhill Global:

"The Trust has an additional 100k of unutilised GFA at the space between Wisma Atria and Ngee Ann City (near the Spanish steps). We understand that negotiations with Ngee Ann Kongsi and Isetan are underway to redevelop the area and unlock the additional GFA in the medium term."

If the GFA is for retail not office then more value will be created.

(28-03-2015, 09:30 AM)cfa Wrote:

(28-03-2015, 03:02 AM)bchang Wrote:

(27-03-2015, 07:31 PM)opmi Wrote: ^^ don't know if REDEVT is a special resolution in MCST.

Extracted from a DBS broker report from Jan 15 on Starhill Global:

"The Trust has an additional 100k of unutilised GFA at the space between Wisma Atria and Ngee Ann City (near the Spanish steps). We understand that negotiations with Ngee Ann Kongsi and Isetan are underway to redevelop the area and unlock the additional GFA in the medium term."

If the GFA is for retail not office then more value will be created.

sure do retail one. capital value and rent also higher.

Isetan 139mil market cap with prized assets all valued at cost less depre and debtless.

We can deliberately ignore their freehold warehouse, Havelock office building and 100mil worth of cash and bonds.

Just focus on their Wisma atria stake which left with 43 years and valued at 290mil(double its market cap)

Since its an investment prop now mainly used for rental and with such a short lease left, can we anticipate a potential sale to Starhill Global? Since it would be beneficial for both sides. Starhill can easily use debt to finance the acquistion and inturn increase their DPU.

If Isetan mgt wants to be a tad bit pragmatic, they should sell their wisma stake to starhill, payout a special div to shareholders and double the share price. That would also instantly solve the problem of rapid depreciation each passing year.

Alternatively, they can also privatize at an acceptable price before selling. They have 100mil of cash and bonds and all their freehold assets are unencumbered, they have the means to easily take themselves private. Since this counter is extremely iliquid and I see zero reason for listing as they dont need to raise funds through equity. Own view.

(02-11-2018, 05:47 PM)Scg8866t Wrote: Alternatively, they can also privatize at an acceptable price before selling. They have 100mil of cash and bonds and all their freehold assets are unencumbered, they have the means to easily take themselves private. Since this counter is extremely iliquid and I see zero reason for listing as they dont need to raise funds through equity. Own view.

This is one of a few rare companies listed on SGX that does not have a share issue mandate tabled at their AGMs. While other companies tabled the share issue mandate as a "standard" resolution for shareholders to approve, it seems that they don't see the need to even issue a single share.

Quick answer:

- Isetan won’t pay out any sale proceeds coz they have dream of SG flagship
store. I assume the atas one like the one in JL

- JP taxes on dividends higher than SG. so even less for ISETAN JP.

value trap, I Guess.

(02-11-2018, 08:48 PM)opmi Wrote: Quick answer:

- Isetan won’t pay out any sale proceeds coz they have dream of SG flagship
store. I assume the atas one like the one in JL

- JP taxes on dividends higher than SG. so even less for ISETAN JP.

value trap, I Guess.

All the more reasons to take it private.

(02-11-2018, 05:47 PM)Scg8866t Wrote: Isetan 139mil market cap with prized assets all valued at cost less depre and debtless.

We can deliberately ignore their freehold warehouse, Havelock office building and 100mil worth of cash and bonds.

Just focus on their Wisma atria stake which left with 43 years and valued at 290mil(double its market cap)

Since its an investment prop now mainly used for rental and with such a short lease left, can we anticipate a potential sale to Starhill Global? Since it would be beneficial for both sides. Starhill can easily use debt to finance the acquistion and inturn increase their DPU.

If Isetan mgt wants to be a tad bit pragmatic, they should sell their wisma stake to starhill, payout a special div to shareholders and double the share price. That would also instantly solve the problem of rapid depreciation each passing year.

Alternatively, they can also privatize at an acceptable price before selling. They have 100mil of cash and bonds and all their freehold assets are unencumbered, they have the means to easily take themselves private. Since this counter is extremely iliquid and I see zero reason for listing as they dont need to raise funds through equity. Own view.

A 15% low vol surge to 3.80. This extremely neglected stock, just need mgtment to execute simplistic actions to unlock huge value to shareholders. Own view.

(07-01-2019, 05:53 PM)Scg8866t Wrote:

(02-11-2018, 05:47 PM)Scg8866t Wrote: Isetan 139mil market cap with prized assets all valued at cost less depre and debtless.

We can deliberately ignore their freehold warehouse, Havelock office building and 100mil worth of cash and bonds.

Just focus on their Wisma atria stake which left with 43 years and valued at 290mil(double its market cap)

Since its an investment prop now mainly used for rental and with such a short lease left, can we anticipate a potential sale to Starhill Global? Since it would be beneficial for both sides. Starhill can easily use debt to finance the acquistion and inturn increase their DPU.

If Isetan mgt wants to be a tad bit pragmatic, they should sell their wisma stake to starhill, payout a special div to shareholders and double the share price. That would also instantly solve the problem of rapid depreciation each passing year.

Alternatively, they can also privatize at an acceptable price before selling. They have 100mil of cash and bonds and all their freehold assets are unencumbered, they have the means to easily take themselves private. Since this counter is extremely iliquid and I see zero reason for listing as they dont need to raise funds through equity. Own view.

A 15% low vol surge to 3.80. This extremely neglected stock, just need mgtment to execute simplistic actions to unlock huge value to shareholders. Own view.

Stock has almost surged 60% from the time of my first post and still going strong. Isetan is the definition of “asset pray”. Ie unlock tremendous value from sale of their assets valued at historical cost. Something brewing?

Yes. Isetan is interesting now as REITs are on an expansion path, the low interest rate environment is giving them more reason to acquire.
And that may serve as a catalyst to unlock its value. The retail arm is probably worthless on its own but it is sitting on a slowly depreciating mountain of gold.

I really like the term " Asset Pray". You literally have to pray for the asset to be unlocked.

Isetan - halted.
exploring its options regarding its investment property at Wisma Atria (“Isetan Wisma Atria”) and in this connection, may be appointing property agents and valuers to assist the Company and/or commencing exploratory discussions on the matter with third parties.
https://links.sgx.com/FileOpen/INVESTMEN...eID=645850

Stay home and stay healthy, everyone.