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08-05-2012, 07:10 AM
Gd thinking on your part.
However, to excite any reits from buying properties, there are following factors to consider:
i) the size of the properties are critical;
ii) usually they are related party transactions - CWT is the sponsor of Cache;
iii) unless N Toyo is so hard up for upfront cash, do you think they will subject themselves from high lease rentals post sale and lease back since their properties are bought at low historical prices?
Whatever will be will be. N Toyo is a boring supporting industry player so being a wrong term investor, you must have faith in the controlling shareholders and be prepared to go through the dramas staged by Yen family.
Been tracking them since 97 listing - only in recent years have N Toyo become attractive as a yield play largely because share price was decimated post GFC.
However, to excite any reits from buying properties, there are following factors to consider:
i) the size of the properties are critical;
ii) usually they are related party transactions - CWT is the sponsor of Cache;
iii) unless N Toyo is so hard up for upfront cash, do you think they will subject themselves from high lease rentals post sale and lease back since their properties are bought at low historical prices?
Whatever will be will be. N Toyo is a boring supporting industry player so being a wrong term investor, you must have faith in the controlling shareholders and be prepared to go through the dramas staged by Yen family.
Been tracking them since 97 listing - only in recent years have N Toyo become attractive as a yield play largely because share price was decimated post GFC.
(07-05-2012, 10:53 PM)Underdogger Wrote: New Toyo and Tien Wah should follow CWT model (see below) - sell all properties, investment properties and land holdings to unlock all the values; and then lease just sufficient space for printing operations...
If done properly, this should unlock at least another 10 cents of EPS....
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Published May 07, 2012
CWT Limited said on Monday that it plans to sell Pandan Logistics Hub for S$66 million and lease it back from the buyer.
The conditional sale and purchase agreement was entered between CWT's subsidiary, 49 Pandan Pte Ltd, and the trustee of Cache Logistics Trust, HSBC Institutional Trust Services (Singapore) Limited.
The property sits on 12,419-sqm of land and comprises a 5-storey ramp up warehouse with gross floor area of 329,109 sqf.
"The proposed sale and leaseback of the property will enable the Company to realise its investment in the property, while enabling the company to continue using the property to provide warehousing to its customers as part of its logistics services business," CWT said.
The sales proceeds can be deployed towards expanding the existing logistics and supply chain management businesses of thegroup as well as providing additional working capital.