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22-06-2011, 06:01 PM
Sim Land won the land in Aug 2010 at S$261 per sq foot of potential gross floor area.
Back of envelope calculations (using assumptions like 60% LTV and S$250 construction cost), breakeven is probably around S$580 psf.
Before the uproar, the rumored launch price was S$750 psf. Hence, profit margin of Sim Land could be around 28%. Its return of equity could be in 90% range.
After the public uproar, the official launch price is S$663 psf, suggesting profit margin could be around 14%.
Reasonable?
Back of envelope calculations (using assumptions like 60% LTV and S$250 construction cost), breakeven is probably around S$580 psf.
Before the uproar, the rumored launch price was S$750 psf. Hence, profit margin of Sim Land could be around 28%. Its return of equity could be in 90% range.
After the public uproar, the official launch price is S$663 psf, suggesting profit margin could be around 14%.
Reasonable?