Frasers Property (formerly: Frasers Cpt (FCL))

> When will FCL join the STI components? I noted that its market cap has exceeded Olam and Comfort which currently on the list

My guess no way. Too many property companies in index.

(26-05-2014, 07:54 PM)jianjian Wrote:

(26-05-2014, 07:15 PM)MINX Wrote:

(26-05-2014, 07:01 PM)ValueMaster Wrote: bought FCL at $1.60 and enjoyed the ride, sold off for a nice gain today ^_^

this forum is really a gold mine, thanks for highlighting this wonderful value play

Personally, I felt you left the dinner table a little early. The good dishes have yet to be served. Having said that, it's your money, your call.

hi minx, u wont know. maybe he spotted another dinner with better "dishes"

In his own words, he "eat full" already, need to relax. I believe he has a lower risk apetite

(26-05-2014, 07:59 PM)ValueMaster Wrote:

(26-05-2014, 07:15 PM)MINX Wrote:

(26-05-2014, 07:01 PM)ValueMaster Wrote: bought FCL at $1.60 and enjoyed the ride, sold off for a nice gain today ^_^

this forum is really a gold mine, thanks for highlighting this wonderful value play

Personally, I felt you left the dinner table a little early. The good dishes have yet to be served. Having said that, it's your money, your call.

Well, I'm just a simple person. If I can make 10% returns a year I would be a very happy man, anything more makes me even happier.

However I'm not a greedy person, just wanted to lock in my 20% gain and relax for a while, hope things continue to go well for you folks, cheers ^^

I'm just expressing what i feel, so long as you pocket some gain, it's a pretty good move on your part, whether it could be better, time will be the judge...

Wondering is FCL one of the first few Singapore listed companies that have started vulturing in Spain...

http://www.businesstimes.com.sg/specials...y-20140527

PUBLISHED MAY 27, 2014
Spanish property market shows signs of recovery

Increase in sales indicates that values may be starting to stabilise

In the zone: As buyers re-emerge in certain parts of the country, prices, which have dropped an average of 47 per cent since the peak in 2007, are starting to increase in cities. - PHOTO: REUTERS
[MADRID] Within the ashes left by Spain's property crash, some embers are glowing.

As the recovery in the euro region's fourth-largest economy continues and record unemployment subsides, the property market whose slump had locked the country into a recession is showing signs of life. While home price data isn't yet signalling a turnaround, an increase in sales indicates that values may be starting to stabilise.
The market is now safe enough for Stanislas de Bellescize, a 44-year-old computer programmer who recently took the plunge and bought a house two subway stops from the affluent Salamanca district in downtown Madrid. More such decisions would offer Prime Minister Mariano Rajoy the prospect of a further pillar on which to build Spain's revamped economy after more than half a decade of misery.
"We thought this is the right moment," said Mr de Bellescize, who has found new work after losing his previous job last year. "There is still room to negotiate prices."

Agreed, more value ahead

(26-05-2014, 07:15 PM)MINX Wrote:

(26-05-2014, 07:01 PM)ValueMaster Wrote: bought FCL at $1.60 and enjoyed the ride, sold off for a nice gain today ^_^

this forum is really a gold mine, thanks for highlighting this wonderful value play

Personally, I felt you left the dinner table a little early. The good dishes have yet to be served. Having said that, it's your money, your call.

I didn't read the original article carefully, FCL acquired one site in Germany for serviced apartments and very likely evaluating another 2 sites:

http://infopub.sgx.com/Apps?A=COW_CorpAn...uddies.com

http://infopub.sgx.com/FileOpen/Letter_t...eID=299007

(26-05-2014, 08:05 AM)greengiraffe Wrote: Note that FCL is going xd 2.4 cents interim dividend today

PUBLISHED MAY 26, 2014
TOPLINE
An eye on growing its landbank

Frasers Centrepoint also aims to tap its strength in mixed-use projects and is mulling over a hospitality fund, reports LYNETTE KHOO

'We will be interested to participate to buy commercial assets, particularly suburban malls, offices and even business parks.'
- Lim Ee Seng, group CEO of Frasers Centrepoint Limited
- FILE PHOTO
SINGAPORE'S property market has cooled somewhat but Frasers Centrepoint Limited (FCL) remains fired up. The global property player is looking to grow its landbank albeit through moderate bids, tap its strength in mixed-use development and scale up its hospitality arm.
In fact, given the speed at which its hospitality business is growing, it is starting to consider having a fund to manage those acquired assets.
"If we have a hospitality fund that can work with us, that will be an attractive proposition," said group chief executive officer Lim Ee Seng. "Nothing has been confirmed, but this is worth exploring."
As part of its buying spree, FCL snapped up Spanish company Teycotel BCN for 948,000 euros (S$1.6 million) last month; the company owns Hotel Porta Marina in Barcelona and the hotel's operator. In Germany, FCL has acquired three greenfield sites that are being developed for serviced residences.
The group is now looking at a fourth site in Germany and one or two more hotels in Spain, Mr Lim said.
The planned listing of Frasers Hospitality Trust (FHT) next month shows that the group's hospitality business has come of age. For a start, FHT will have an initial portfolio of six serviced residences and six hotels. The six serviced apartments will come from FCL at a price tag of at least $651.7 million, while the other six hotels will be injected by FCL's major shareholder TCC Group, controlled by Thai billionaire Charoen Sirivadhanabhakdi.
This spin-off of the trust is also coming at a time when FCL wants to beef up its investment properties - that now make up 30 per cent of group revenue - to be on par with the contribution from its development properties in the long run.
Higher yielding development projects still accounts for 70 per cent of group revenue. But given the slowdown in the residential market here, FCL has been trying to raise recurring income from investment properties.
"We will be interested to participate to buy commercial assets, particularly suburban malls, offices and even business parks," Mr Lim said. "Our strength is in mixed-use development," he added, in reference to Changi City Point, Watertown in Punggol and a soon-to-be-launched mixed-use project in Yishun.
Still, FCL will carry on replenishing its residential landbank in the mass market and mid-tier segments, albeit with moderate bids.
Noting that there have been instances where developers threw in aggressive bids, only to yield a return of less than 10 per cent from their developments, Mr Lim said: "This is not a situation we want to be in. Whenever we win the site, we don't want to end up losing sleep over it."
To date, its Sengkang condo project Rivertrees Residences has sold more than half of its 496 units; its 632-unit QBay Residences at Tampines is almost fully sold. Both projects have achieved median prices of slightly above $1,000 per sq ft (psf). The Sengkang plot was bought at $533 psf per plot ratio (psf ppr) and the Tampines site at $417.86 psf ppr with partners Far East Orchard and Sekisui House.
FCL also wants to shorten the so-called "time-to-market" - from the day it acquires the plot to the project's launch date - to six months from the current eight months.
But the mixed-use site in Yishun is taking a longer than usual time, given that it is sitting on top of a new bus interchange, which renders the need for certain regulatory approvals.
The group had earlier stunned the market with its $1.43 billion bid for the Yishun site last September, 47 per cent above the next highest offer.
"We had to protect our position" in the retail segment in Yishun, Mr Lim explained. But the pricing of residential units in the project is expected to be "affordable and attractive enough to invite buyers and investors", he said. FCL is shooting for a launch by the end of this year.
While Singapore remains its core market, the group is on the lookout for opportunities in Australia and China, where it is targeting annual residential sales of over 1,000 units collectively over the medium term.
The group's prudent assessment of options, however, means that there are times it has to hold back or be prepared to let some opportunities pass.
"Last two years, we have had some opportunities to acquire - both landbank and companies - in Vietnam. But we made a definite decision not to go in and that proved to be correct," Mr Lim said.
"If we had gone in two years ago, we would have made massive write-downs in the assets. Buying had ground to a halt, the interest rate at that time was very high and the Dong was very volatile," Mr Lim added.
"Now, the landbank is good and the pricing has been pared down, we are open to opportunities. We have been approached, but we are studying all this and are monitoring very closely the impact from the aftermath of the anti-Chinese riots."
lynkhoo@sph.com.sg
@LynetteKhooBT

FCL, clsa maintain BUY:

Stock, Ticker: FCL, FCL SP
Market cap, ADV: US$4,496m, US$0.9m
Target price, Rec: S$2.20, BUY

Roadshow feedback
We recently hosted a non-deal roadshow with senior management of FCL in Europe. Investor concerns centred around the intentions of new shareholders in the near term, use of hospitality Reit spinoff proceeds and the challenging residential market. We remain BUYers of FCL with S$2.20 TP. Key catalysts include the rerating in valuations if freefloat for FCL improves in our view. High pre-sales coupled with an undervalued retail portfolio and our forecasted 4% yield should firmly underpin valuations.

Key concern 1 - Intentions of new shareholders
Much of the focus from investors centred around the intentions of its new shareholders, TCC and ThaiBev and how the current 12% freefloat can be improved. We believe the new shareholders are likely to swap shares or pare down its stakes resulting in ThaiBev lowering its direct stakes in FCL given that it is not seen as a natural shareholder and low synergies for this stake. This is the major catalysts for FCL in our view as liquid peers trade on 20% premium in valuations over companies with low free float. Other questions revolved around any change in management style under TCC.

Key concern 2 - Challenges in the residential markets
Given’s FCL’s focus in Singapore/Australia and China markets, investors were concerned on FCL’s property development strategy in these markets. Management reiterated their long term positive outlook on the Singapore residential market despite signs of price cuts from some competitors for unsold launches. Meanwhile, Australia is still a very lucrative market for FCL and management expects sales to remain firm for FY15. Lastly in China, FCL is offering lower spec fit-outs for some units to improve buyer’s affordability.

Key concern 3 - Use of proceeds from hospitality Reit spinoff
The planned hospitality Reit also received much attention on the use of potential proceeds from this sale where FCL will inject 6 assets worth S$652m. Management noted that proceeds will likely be reinvested for its hospitality business where it is still on an acquisition path after having acquired Sofitel Wentworth in Sydney recently. Lastly, some investors were concerned on the valuations for the remaining 6 assets that will be acquired from TCC for the hospitality Reit in future and quality of the future pipeline.

Reiterate BUY
We remain BUYers of FCL with target price of S$2.20. Key catalysts include the rerating in valuations if freefloat for FCL improves. We believe TCC/THBEV has intentions to increase FCL’s free float after the 6mths lock up period which ends 9th July. High pre-sales coupled with an undervalued retail portfolio and our forecasted 4% yield should firmly underpin valuations.


Real Estate (Singapore)
CLSA Asia Pacific Markets

Car sharing pulls in at Central Park

Su-Lin Tan
496 words
28 May 2014
The Australian Financial Review
AFNR
English
Copyright 2014. Fairfax Media Management Pty Limited.
Sydney's $2 billion Central Park precinct will have the nation's largest fleet of GoGet share vehicles.

When completed, Central Park, at Broadway, at the south of the city, will have 2200 apartments and more than 5000 residents.

But not all apartments will have parking spaces.

"Increasing numbers of urban dwellers are living in the city without a car. With GoGet, residents don't need to buy a car, and if they don't have a second car, they have a fleet of cars to choose from," GoGet chief executive Tristan Sender said.

This reflected a drop in car ownership and an increase in car sharing among Sydney residents.

The city saw a 20 per cent increase in car share spaces in the past year.

GoGet allows consumers to book a car by the hour, with costs ranging from $6.35 to $9.90 an hour. The company has more than 1300 vehicles in Australia with l110 of those in Sydney.

Central Park will have 44 GoGet cars, including anAudi and an Alfa Romeo and they will be available for use by residents and members of the public.

On-site sales and rental agent Greencliff Realty said of the 1428 apartments released, just 736 have car spaces.

"While some of the smaller apartments such as studios and one bedroom apartments do not have car spaces, there is no discernible difference between the sales of these units and those which have spaces," said Guy Pahor, chief executive of Frasers Property, one of the developers.

"Buyers are driven by price points, with investors deciding that additional car spaces do not add more to the value of the apartment.

"What drives the value of the apartments is the social and physical infrastructure within walking distance from Central Park."

The cost of a car space in Central Park is about $75,000.

Mr Pahor said selling to buyers and investors in city dwellings is different to those in the suburbs of Sydney.

"We separately price the apartment and car spaces. We let the consumer decide what combo they want with their apartments."

Buyers and investors of city dwellings have already factored in the idea of not owning cars. If they want a car space, they can either purchase it or access services such as GoGet, he said.

Even with fewer parking spaces available, Greencliff Realty executive director, Marcus Chang said the demand for rental properties at Central Park has been high with vacancy rates lower than the city average.

"Rental values across Central Park are above market expectations and are likely to remain high.

"With an average weekly rental well above the Chippendale average, Central Park's 'buy to let' investors are receiving excellent returns on their investments," Mr Chang said.

Central Park also features other sustainability features such as central­ ­thermal plant and a water recycling facility. The GoGet fleet is its third piece of environmental infrastructure.


Fairfax Media Management Pty Limited

Document AFNR000020140527ea5s0002v

http://infopub.sgx.com/FileOpen/FCL-Pres...eID=300069

100% cash offer for Australand @ A$4.48 per share valuing ALZ at A$2.5882bn. Higher than Capaland recent sale of < A$3.80.

Comments later from GG

Vested
GG

It's strange that Frasers didn't try to buy some stock after the CapitaLand sell down like Stockland did. Would have given them a stronger bidding position and cheaper economics.