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10-10-2010, 10:32 PM
With the latest 30Sep10 announcement on the completion of the acquisition of the Coronade Hotel Kuala Lumpur....
http://info.sgx.com/webcoranncatth.nsf/V...D0028ED66/$file/HRL-AnnouncementProposedAcqusition30Sept10.pdf?openelement
, with full details of the acquisition in an earlier 4Mar10 announcement....
http://info.sgx.com/webcoranncatth.nsf/V...C00373360/$file/Announcement-4-Mar-10.pdf?openelement
Hotel Royal now owns a total of 4 hotels - 2 in Singapore, and 1 each in Kuala Lumpur and Penang - all sited on freehold land with good long-term value and redevelopment potential.
With the recently completed (in Jul10) 2-for-5 rights issue at $1.50 - raising $36m in gross proceeds - Hotel Royal now has 84m issued shares. Based on the last done share price of $2.38, market cap now stands at $199.9m. I think this is a clear case of gross under-pricing by Mr Market, bearing in mind, apart from the 4 hotels, Hotel Royal also owns -
(1) a freehold apartment block (under construction) at 1A Surrey Road (right next to Hotel Royal on Newton Road);
(2) a shopping centre/office complex in Wellington, New Zealand;
(3) a few other smaller commercial/industrial units in Singapore; and
(4) a portfolio of quoted securities with market value of some $10m as at 30Jun10.
Full details of Hotel Royal's property assets are contained in page 71 of the latest FY09 AR.....
http://www.sgx.com/wps/portal/marketplac...al_reports
Based on the 30Jun10 NAV/share of $4.17 from the 1H-FY10 results announcement.....
http://info.sgx.com/webcoranncatth.nsf/V...B0014238C/$file/HRL2Q2010.pdf?openelement
post-rights issue adjusted NAV/share is $3.41.
In his Chairman's Message in the FY09 AR, Chairman Dr Lee Keng Thon mentioned that if a $95.9m revaluation surplus (net of tax) on the Group's hotel and investment properties is included, Hotel Royal's net asset value (after revaluation) would have increased from
S$4.19 to S$5.79 per share as at 31Dec09. Adjusting for the rights issue, post-rights issue RNAV/share would be still a whopping $4.56!
As $4.56 appears to be conservative still, Hotel Royal looks like a great value investing opportunity!
http://info.sgx.com/webcoranncatth.nsf/V...D0028ED66/$file/HRL-AnnouncementProposedAcqusition30Sept10.pdf?openelement
, with full details of the acquisition in an earlier 4Mar10 announcement....
http://info.sgx.com/webcoranncatth.nsf/V...C00373360/$file/Announcement-4-Mar-10.pdf?openelement
Hotel Royal now owns a total of 4 hotels - 2 in Singapore, and 1 each in Kuala Lumpur and Penang - all sited on freehold land with good long-term value and redevelopment potential.
With the recently completed (in Jul10) 2-for-5 rights issue at $1.50 - raising $36m in gross proceeds - Hotel Royal now has 84m issued shares. Based on the last done share price of $2.38, market cap now stands at $199.9m. I think this is a clear case of gross under-pricing by Mr Market, bearing in mind, apart from the 4 hotels, Hotel Royal also owns -
(1) a freehold apartment block (under construction) at 1A Surrey Road (right next to Hotel Royal on Newton Road);
(2) a shopping centre/office complex in Wellington, New Zealand;
(3) a few other smaller commercial/industrial units in Singapore; and
(4) a portfolio of quoted securities with market value of some $10m as at 30Jun10.
Full details of Hotel Royal's property assets are contained in page 71 of the latest FY09 AR.....
http://www.sgx.com/wps/portal/marketplac...al_reports
Based on the 30Jun10 NAV/share of $4.17 from the 1H-FY10 results announcement.....
http://info.sgx.com/webcoranncatth.nsf/V...B0014238C/$file/HRL2Q2010.pdf?openelement
post-rights issue adjusted NAV/share is $3.41.
In his Chairman's Message in the FY09 AR, Chairman Dr Lee Keng Thon mentioned that if a $95.9m revaluation surplus (net of tax) on the Group's hotel and investment properties is included, Hotel Royal's net asset value (after revaluation) would have increased from
S$4.19 to S$5.79 per share as at 31Dec09. Adjusting for the rights issue, post-rights issue RNAV/share would be still a whopping $4.56!
As $4.56 appears to be conservative still, Hotel Royal looks like a great value investing opportunity!