Guthrie GTS

[Wildreamz]

Their properties are quite hard to value independently, so I guess their reported NAV is a good gauge.

I agree, unless you are really an expert in this area. I think perhaps we can use discounted cash flow to estimate.. I'll try that when I have the time.

[greengiraffe]

What name also never mind - its the former Apollo Centre. Honestly I don't think the building has much potential due to its history.

However, should GTS strata title it, then they may be able to do a quick flip to speculators who are hard up for assets.

Can't do much wonders for some properties with historical location baggages.

Overall, I think GTS will keep going and leverage up with their strong Indonesian backing. Personally, they have no intentions of selling especially with their prime assets like Jurong Point. Even the rojak Kovan Heartland Mall also remains how it is - definitely cant match the quality of CMT run malls.

With cashflow not an issue with Salim and Putra (pardon me with wrong spelling, GTS will keep accumulating assets with cheap financing.



http://info.sgx.com/webcoranncatth.nsf/V...10023378F/$file/A_2HR_010313.pdf?openelement

http://propertyforesight.wordpress.com/2...-for-205m/

December 20, 2007
Apollo Centre sold for $205m
Filed under: Commercial,Property Deal — Propertymarketupdates @ 11:27 am
US PROPERTY fund manager AEW Capital Management has bought Apollo Centre for $205 million, or $1,378 per sq ft (psf) of lettable floor area, the property firm that brokered the deal said yesterday.

Apollo Centre, in Havelock Road, is a seven-storey commercial building with shops on the basement, first and second storeys and offices on the upper floors.

It sits on 54,600 sq ft of land and has a gross floor area of around 217,500 sq ft. The lettable floor area is 148,700 sq ft. It is on a 99-year lease, with 75 years left.

Knight Frank, which marketed the building, said the purchase shows continued investor confidence in the Singapore commercial market since the US sub-prime crisis.

Apollo Centre was sold by Singapore Exchange-listed Apollo Enterprises. The company also owns and manages Furama City Centre Singapore and Furama RiverFront Singapore.

Knight Frank put up the property for sale in September and the tender closed on Oct 16. Several parties were interested and negotiations went on for several weeks after, said Knight Frank executive director Foo Suan Peng.

AEW and its affiliates manage more than $41US billion of real estate assets and securities in North America, Europe and Asia. The group set up an office in Singapore in April as a base from which to expand in the region. AEW intends to refurbish Apollo Centre, BT understands.

Right now, office rents in the area are about $8.00 psf per month (psf pm) while retail rents range from $8.00-$8.50 psf pm.

Source : Business Times – 13 Dec 2007

[Share Investor]

Hi Greengiraffe, what history does Apollo centre have? Can share?

[greengiraffe]

You see the lease is now 69 yrs, ie 6 years ago was 75 years.

Apollo Centre was owned by Apollo Holdings subsequently renamed Furama Holdings now delisted.

Apollo family had their own fair share of controversy after they bought over Furama Hotel across the road.

I think the family thought they could add value by bidding for the land across the road and build on it. They did but they got stuck until end 07 when money was really free and the Yanks bought them out. Of course, Apollo got out of jail and the Yanks have to carry through GFC and then their turn to get out of jail.

The area now could have been revitalised but in the tough old days, occupancy was terrible and only low end tour agency was around. There is even an Xinyao place called Mu Chuan 木船-where new local chinese singers ply their trades.

Hi Greengiraffe, what history does Apollo centre have? Can share?

[Share Investor]

Greengiraffe, thanks for sharing! Personally I think that building will be great for office but not for retail. GTS had done flipping for Adelphi and Burlington Sq. so I will not be surprised if they do so for this building.

Who knows, plot ratio might be increased in this coming new Masterplan?

[yeokiwi]

You see the lease is now 69 yrs, ie 6 years ago was 75 years.

Apollo Centre was owned by Apollo Holdings subsequently renamed Furama Holdings now delisted.

Apollo family had their own fair share of controversy after they bought over Furama Hotel across the road.

I think the family thought they could add value by bidding for the land across the road and build on it. They did but they got stuck until end 07 when money was really free and the Yanks bought them out. Of course, Apollo got out of jail and the Yanks have to carry through GFC and then their turn to get out of jail.

The area now could have been revitalised but in the tough old days, occupancy was terrible and only low end tour agency was around. There is even an Xinyao place called Mu Chuan 木船-where new local chinese singers ply their trades.

Hi Greengiraffe, what history does Apollo centre have? Can share?

So nostalgic, I was the shareholder of Apollo Enterprises and subsequently Furama Holdings. Furama was later delisted.
If I am not wrong, Apollo family sold away Apollo centre to raise cash to delist Furama which was a great move.
But bad for minority shareholders.

[a74henry]

Apparently, $0.715 is a support. This counter has shown resistance by rising over a period of time to provide long term shareholders a share price appreciation on top of the reasonable dividend yield.

[yanziyang]

GUTHRIE has picked up 2HR at 2 Havelock Road in a deal that values the asset at $282.88 million, or $1,626 per square foot, based on its current net lettable area (NLA) of 173,912 sq ft.

The seven-storey commercial building is on a site with a remaining lease of about 69 years.

It has 36,992 sq ft of retail NLA on the lower levels (including basement) and 136,920 sq ft of offices above that. It has 95 basement carpark lots.

Market watchers reckon that given Guthrie's experience in the retail property business, it can be expected to convert some of the lower-level office space into retail space, which typically commands higher rents.

When contacted, Guthrie GTS executive director Michael Leong highlighted 2HR's attractive location in the Chinatown area, which he said has "great potential".

The building is a stone's throw away from Clarke Quay MRT station, in addition to being about 280 metres from the future Chinatown MRT station on the Downtown Line.

Diagonally opposite 2HR, the spanking new Parkroyal on Pickering hotel opened its doors a few months ago, as did the revamped Chinatown Point mall after a spruce-up costing more than $90 million.

Guthrie is acquiring 2HR through shares in the company that owns the asset. The shares are being sold by US-based property fund group AEW.

Based on the current average monthly rental of about $6 per square foot being paid by tenants in the building, the net yield on the $282.88 million price works out to about 3.2 per cent.

Major tenants include Estee Lauder (which occupies about 48,000 sq ft), DSM Nutritional Products, MOL Tankship Management and insurance broker Willis (Singapore).

2HR was sold through a private treaty deal. CBRE sourced the buyer and will split the commission with Jones Lang LaSalle, with whom it was jointly appointed as exclusive marketing agents by AEW.

AEW acquired the property, formerly known as Apollo Centre, for $205 million in 2007 and completed an extensive refurbishment two years later.

The building has a land area of 54,560 sq ft and the site is zoned for commercial use. Outline approval has been secured to redevelop the property into a 12-storey hotel.

2HR is the last of AEW's major property assets in Singapore. Last year, it sold three assets - Murray Terrace, Robinson Point and four adjoining three-storey shophouses in Amoy Street.

Murray Terrace - an award-winning row of 14 conserved shophouses just off Maxwell Road - was sold for $75 million to Satinder Garcha of Elevation group. Robinson Point, a 21-storey freehold office tower, was sold for $284 million or $2,132 psf on existing NLA to Sun Venture. AEW received nearly $33 million for the Amoy Street shophouses.

[pianist]

wow 2hr is indeed a prime location..cool for guthrie

[a74henry]

Paya Lebar Square is a potential income generator too.

I like the retail mall management which generates recurring income by providing mall management services for Tiong Bahru Plaza, Century Square Shopping Centre, Hougang Mall, White Sands Shopping Centre, Tampines 1, Liang Court and Central Plaza.

MV being below book value is a plus point with the NAV increasing over the years. Definitely a value stock with a good buffer.