Ho bee announced trading halt pending announcement. We believe the trading halt could be related to one of the following:
1. Potential announcement of a big acquisition in Singapore, China or Australia. Ho Bee's balance sheet has been very solid with low gearing levels of 0.17x debt headroom of more than S$0.5b(assuming 0.5x).
2. Possible M&A activity.
3. Privatization possibility. Ho Bee's management has been very active in buying back the shares over the last 2 years. It's current float is at 25% with major shareholder holding 71% of the company. The stock is currently trading at a steep 38% discount to our RNAV of S$3.07/share.
We have a BUY and target price of S$2.45, pegged at a 20% discount to our RNAV of S$3.07/share.
Warm Regards,
Vijay.N
Investment Analyst
UOB Kay Hian Research
Tel65) 6590 6626
Email: vijaynatarajan@uobkayhian.com
Ho bee announced trading halt pending announcement. We believe the trading halt could be related to one of the following:
1. Potential announcement of a big acquisition in Singapore, China or Australia. Ho Bee's balance sheet has been very solid with low gearing levels of 0.17x debt headroom of more than S$0.5b(assuming 0.5x).
2. Possible M&A activity.
3. Privatization possibility. Ho Bee's management has been very active in buying back the shares over the last 2 years. It's current float is at 25% with major shareholder holding 71% of the company. The stock is currently trading at a steep 38% discount to our RNAV of S$3.07/share.
We have a BUY and target price of S$2.45, pegged at a 20% discount to our RNAV of S$3.07/share.
Warm Regards,
Vijay.N
Investment Analyst
UOB Kay Hian Research
Tel65) 6590 6626
Email: vijaynatarajan@uobkayhian.com
22-03-2013, 11:55 AM (This post was last modified: 22-03-2013, 11:57 AM by yanziyang.)
Ho Bee pins hopes on Metropolis
The group expects it to pull in $80m in annual rental income by 2015
HAVING undergone its topping out ceremony, The Metropolis, Ho Bee Investment's one-north office development, is just months away from completion.
The 1.1 million sq ft, Grade A-specification building is expected to receive a Temporary Occupation Permit for its first tower in July, and for its second tower in September, just 21/2 years after development began.
Despite rising construction costs and new government regulations on foreign workers restricting labour, The Metropolis is set to be completed ahead of schedule. Ho Bee chairman Chua Thian Poh attributed this to main contractor Lum Chang's good work on the project.
Construction is not the only area in which The Metropolis has a head start. To date, the development has a 60 per cent tenant pre‐commitment rate for its total lettable area. Mr Chua said The Metropolis was also the most successful development this year in attracting blue‐ chip tenants.
According to data collated by CBRE, four out of five of the largest office lease commitments in the past six months were secured by The Metropolis. These were from Procter & Gamble, Shell, Neptune Orient Lines, and Singapore Exchange. Ho Bee has also successfully engaged gym operator Fitness First, as well as F&B outlets including Starbucks, Simply Bread, and Peach Garden, to take up tenancy in The Metropolis. The Ho Bee group is shifting its own headquarters to the new building as well.
Marcus Loo, executive director of office services at Colliers International, was not surprised by the high pre‐commitment rate for The Metropolis, even with its location outside the CBD. "The Singapore office supply for buildings in the CBD are few and far between," he said.
While the lettable office and retail space has not yet been filled, Ho Bee expects to have full occupancy by next year.
Source: AmFraser
===================================
Ho Bee Investment Ltd (the “Company”) refers to the Business Times’ article report “Ho Bee pins hopes on Metropolis” on 22 March 2013.
The Company wishes to confirm that the Group’s 1.2 million square feet commercial development, The Metropolis located at One-North is expected to complete in the third quarter this year. This Grade-A commercial building is currently about 60% pre-committed with average rental of S$6 to S$7 psf for office leases and a range of S$8 to S$15 psf for
retail. When fully occupied by 2015, it is expected to generate an annual recurrent income of approximately S$80 million.
According to UOB Kay Hian, office demand will continue to surprise in 2013, with multiple large leasing contracts signed by multinationals Shell, Procter and Gamble, Neptune Orient Lines and the Singapore Exchange back office committing to a combined demand of over 600,000sf of space at The Metropolis in Buona Vista in 1Q13.
This,it said, follows the higher-than-anticipated office demand of 1.9m sf in 2012, which is higher than the average 1.2m sf p.a. of demand over the past decade. This came despite weaker 2012 GDP growth of 1.3% and slower demand from the banking sector.
Attached is leasing transactions in 2H12/1Q2013.
Here's more from UOB Kay Hian:
Demand was driven by smaller firms in the commodities, trading, legal, IT and manufacturing space. Although larger banks such as Credit Suisse, Citigroup andUBS have announced plans to downsize, smaller banks such as CIC and SumitomoMitsui and insurers such as Allianz Group have been expanding their office space requirements.
Singapore is expected to benefit from a nascent recovery in the US and China in 2013, with GDP growth forecast to hit 3.0%, according to UOB-ETR. Office demand is set to normalise to 1.6m sf this year, based on our office regression-demand analysis.
(22-03-2013, 11:55 AM)yanziyang Wrote: Ho Bee pins hopes on Metropolis
The group expects it to pull in $80m in annual rental income by 2015
HAVING undergone its topping out ceremony, The Metropolis, Ho Bee Investment's one-north office development, is just months away from completion.
The 1.1 million sq ft, Grade A-specification building is expected to receive a Temporary Occupation Permit for its first tower in July, and for its second tower in September, just 21/2 years after development began.
Despite rising construction costs and new government regulations on foreign workers restricting labour, The Metropolis is set to be completed ahead of schedule. Ho Bee chairman Chua Thian Poh attributed this to main contractor Lum Chang's good work on the project.
Construction is not the only area in which The Metropolis has a head start. To date, the development has a 60 per cent tenant pre‐commitment rate for its total lettable area. Mr Chua said The Metropolis was also the most successful development this year in attracting blue‐ chip tenants.
According to data collated by CBRE, four out of five of the largest office lease commitments in the past six months were secured by The Metropolis. These were from Procter & Gamble, Shell, Neptune Orient Lines, and Singapore Exchange. Ho Bee has also successfully engaged gym operator Fitness First, as well as F&B outlets including Starbucks, Simply Bread, and Peach Garden, to take up tenancy in The Metropolis. The Ho Bee group is shifting its own headquarters to the new building as well.
Marcus Loo, executive director of office services at Colliers International, was not surprised by the high pre‐commitment rate for The Metropolis, even with its location outside the CBD. "The Singapore office supply for buildings in the CBD are few and far between," he said.
While the lettable office and retail space has not yet been filled, Ho Bee expects to have full occupancy by next year.
Source: AmFraser
===================================
Ho Bee Investment Ltd (the “Company”) refers to the Business Times’ article report “Ho Bee pins hopes on Metropolis” on 22 March 2013.
The Company wishes to confirm that the Group’s 1.2 million square feet commercial development, The Metropolis located at One-North is expected to complete in the third quarter this year. This Grade-A commercial building is currently about 60% pre-committed with average rental of S$6 to S$7 psf for office leases and a range of S$8 to S$15 psf for
retail. When fully occupied by 2015, it is expected to generate an annual recurrent income of approximately S$80 million.
Blue chip tenants for its building with the possibility of a REIT.
Chua Thiam Poh is an old hand. He made a pile from Uk before he spotted Sentosa in its infancy and made a huge pile out of it. Metropolis for a commercial prop in Bouna Vista and now sitting on another cash cow...
Who are we to say that Chua as an owner is wrong. Ultimately, he manages his money well and so far he has been more right than wrong.
Stock mkt as I always say is a beautiful place - you like it you buy, dont like it you sell - its this simple.
Co buy back shares - they like it. Furthermore, they are the co, they probably know more than us. I will not quarrel with the co.
Odd lot investor (unfortunately)
(26-03-2013, 08:14 PM)Contrarian Wrote: > Blue chip tenants for its building with the possibility of a REIT.
Dont be too hopeful. The collection of buildings is too small.
The mgt is not very smart to buy back shares... they should wait for the next set of cooling measures and buy cheaper
Disclaimer: Please feel free to correct any error in my post. I am not liable for anything. Do your own research and analysis. I do NOT give buy or sell calls and stock tips. Buy and sell at your risk. I am not a qualified financial adviser so I do not give any advice. The postings reflects my own personal thoughts which may or may not be accurate.
I got a sifu who taught me a stamp collection hobby to buy across the sgx board many years ago.
He charged me special comm rate for such deals.
He said buying odd lots is a cheap way to do PHD on sgx. Whenever annual reports arrived, we not only create employment for postal services but also create opportunity to learn. As long as the company exists, then we will be shareholders for life and can learn the running of the business for life.
If we like the business over time, then we can build up the positions. However should co delist due to a variety of reasons, we either end up with windfall or a piece of wall or toilet paper.
One of my most expensive odd lots was Central Prop. It was eventually delisted and I was given shares in Goodwood Park and Standard Chartered Bank. I am still a Goodwood Park holder and my Standard Chartered Bank continues to accumulate script via dividend reinvestment every other year.
However, he has since retired and I lost the avenue to buy odd lots but the number of odd lots that I am sitting on is still in excess of 100 which is still keeping the postal services very busy and my catch up reading schedule jammed pack whenever it is reporting season.
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