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25-02-2014, 11:00 PM
Please refer to my comments on Sim Lian's latest move under Sim Lian postings.
IMHO, I think Singapore or any other overseas companies that are investing in Australia needs to have at least a 5 year time horizon.
Even for developments, a typical duration from buying land to securing development approvals will require at least 2 years and lots of money to be written off at drawing up the development plans. Thereafter, launching the project and securing bank financing will take easily 6 - 9 months and the construction is easily another 3 years. This is drawing from St******'s North Ryde development experience that was first highlighted in 2010 announcement till current expected completion date in 2017.
This may sound crazy but its certainly part of the "democrazy" at works in Australia. Another case in study will be FCL's Central Park project:
http://infopub.sgx.com/Apps?A=COW_Corpor...9.2.14.pdf
Any company that wants to make reasonable returns from Australia need to have a lot of financial muscle and stamina. As for investors, I have always emphasis that the quick Singapore/HK experience of evaluating property development should never be applied in Australia.
GG
IMHO, I think Singapore or any other overseas companies that are investing in Australia needs to have at least a 5 year time horizon.
Even for developments, a typical duration from buying land to securing development approvals will require at least 2 years and lots of money to be written off at drawing up the development plans. Thereafter, launching the project and securing bank financing will take easily 6 - 9 months and the construction is easily another 3 years. This is drawing from St******'s North Ryde development experience that was first highlighted in 2010 announcement till current expected completion date in 2017.
This may sound crazy but its certainly part of the "democrazy" at works in Australia. Another case in study will be FCL's Central Park project:
http://infopub.sgx.com/Apps?A=COW_Corpor...9.2.14.pdf
Any company that wants to make reasonable returns from Australia need to have a lot of financial muscle and stamina. As for investors, I have always emphasis that the quick Singapore/HK experience of evaluating property development should never be applied in Australia.
GG
(25-02-2014, 10:42 PM)Stocker Wrote: More Singapore company buying Aus assets.
Sim Lian Group acquires A$133 million retail portfolio in Australia
Singapore, 24 February 2014 – Main board-listed Sim Lian Group Limited today expanded its regional footprint with the acquisition of five investment-grade neighbourhood shopping centres in Eastern Australia at a total purchase price of A$133 million (approximately S$152 million).
http://infopub.sgx.com/FileOpen/Pressrel...eID=275803