Eastern Holdings

[smallcaps]

CEO bought 130 lots at 18 cents on monday

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Grove Residence construction progress snapshots taken on 11 Feb:

   

   

   

   

[valuenewb]

I speculate that Tay will come back with another offer soon.

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CEO purchases:

12-Mar - 60 lots @ 18 cents
11-Mar - 75 lots @ 17.66 cents

[Vseeker]

Below are some of Eastern Hldgs's Investment properties (extracted from its AR2012 - Pg.63)

A 4-storey factory for publishing, 60 years from 1 Aug 1969 at
1 Lower Delta Rd,Land=4515 sqM,2012's FV=$18,000,000 Carrying Value =$2,762,795

51 Tras Street, Land=145.9 sqM 2012's FV=$5,700,000 Carrying Value =$1,776,433
53 Tras Street, Land=143.1 sqM 2012's FV=$5,700,000 Carrying Value =$1,842,876
55 Tras Street, Land=145.7 sqM 2012's FV=$5,700,000 Carrying Value =$1,887,402
57 Tras Street, Land=151.6 sqM 2012's FV=$5,700,000 Carrying Value =$1,823,783

and I believe above Fairvalues should still be on the conservative side, esp. the four Tras Street properties are likely to be worth even more.

at a recent auction by Colliers Intl (on the 27 Feb2013, at Amara Hotel)
No. 38 Tras St was real hot !! (it's a 3-sty shophouse with attic, 1298 sqft, 99yrs wef 14/3/1995 )
asking $5.38m....
1st bid $5.20m... and 22 bids later ==> it was done for $6.6m !!!

Now, notice that No.38 Tras St is actually a smaller property - its landsize at only 1298 sqft (120 sqM) and also located further away from TanjongPagar MRT.

whereas Eastern Hldgs's four units have landarea averaging 146 sqM each (that's 22% larger) and all are also buildup to 3-storey.
==> so arguably, each unit should be worth at least $6.6m, possibly even up to $8m each !! versus their bookvalues at around $1.8m and being depreciated further each year.

[smallcaps]

Below are some of Eastern Hldgs's Investment properties (extracted from its AR2012 - Pg.63)

A 4-storey factory for publishing, 60 years from 1 Aug 1969 at
1 Lower Delta Rd,Land=4515 sqM,2012's FV=$18,000,000 Carrying Value =$2,762,795

51 Tras Street, Land=145.9 sqM 2012's FV=$5,700,000 Carrying Value =$1,776,433
53 Tras Street, Land=143.1 sqM 2012's FV=$5,700,000 Carrying Value =$1,842,876
55 Tras Street, Land=145.7 sqM 2012's FV=$5,700,000 Carrying Value =$1,887,402
57 Tras Street, Land=151.6 sqM 2012's FV=$5,700,000 Carrying Value =$1,823,783

and I believe above Fairvalues should still be on the conservative side, esp. the four Tras Street properties are likely to be worth even more.

at a recent auction by Colliers Intl (on the 27 Feb2013, at Amara Hotel)
No. 38 Tras St was real hot !! (it's a 3-sty shophouse with attic, 1298 sqft, 99yrs wef 14/3/1995 )
asking $5.38m....
1st bid $5.20m... and 22 bids later ==> it was done for $6.6m !!!

Now, notice that No.38 Tras St is actually a smaller property - its landsize at only 1298 sqft (120 sqM) and also located further away from TanjongPagar MRT.

whereas Eastern Hldgs's four units have landarea averaging 146 sqM each (that's 22% larger) and all are also buildup to 3-storey.
==> so arguably, each unit should be worth at least $6.6m, possibly even up to $8m each !! versus their bookvalues at around $1.8m and being depreciated further each year.

Appears to be in-line with the $28 mil price tag EHL is asking for the 4 shophouses, which is around $1740 psf.

[smallcaps]

Below are some of Eastern Hldgs's Investment properties (extracted from its AR2012 - Pg.63)

A 4-storey factory for publishing, 60 years from 1 Aug 1969 at
1 Lower Delta Rd,Land=4515 sqM,2012's FV=$18,000,000 Carrying Value =$2,762,795

51 Tras Street, Land=145.9 sqM 2012's FV=$5,700,000 Carrying Value =$1,776,433
53 Tras Street, Land=143.1 sqM 2012's FV=$5,700,000 Carrying Value =$1,842,876
55 Tras Street, Land=145.7 sqM 2012's FV=$5,700,000 Carrying Value =$1,887,402
57 Tras Street, Land=151.6 sqM 2012's FV=$5,700,000 Carrying Value =$1,823,783

and I believe above Fairvalues should still be on the conservative side, esp. the four Tras Street properties are likely to be worth even more.

at a recent auction by Colliers Intl (on the 27 Feb2013, at Amara Hotel)
No. 38 Tras St was real hot !! (it's a 3-sty shophouse with attic, 1298 sqft, 99yrs wef 14/3/1995 )
asking $5.38m....
1st bid $5.20m... and 22 bids later ==> it was done for $6.6m !!!

Now, notice that No.38 Tras St is actually a smaller property - its landsize at only 1298 sqft (120 sqM) and also located further away from TanjongPagar MRT.

whereas Eastern Hldgs's four units have landarea averaging 146 sqM each (that's 22% larger) and all are also buildup to 3-storey.
==> so arguably, each unit should be worth at least $6.6m, possibly even up to $8m each !! versus their bookvalues at around $1.8m and being depreciated further each year.

Appears to be in-line with the $28 mil price tag EHL is asking for the 4 shophouses, which is around $1740 psf.

Checked INLIS and it seems like a caveat was already lodged back in november last year against the 4 shophouses... so I guess we have been speculating against something that has already happened? Strange thing is that no such announcements reported by EHL...

CAVEAT ID/294952K lodged on 28/11/2012 at 11:26
CAVEATOR
--------
CHEONG KENG HOOI & COMPANY PTE. LTD.
Interest Claimed : PURCHASER
Purchase Price : $ 26,500,000
Contract/Option Date : 28/11/2012

CAVEAT ID/294952K lodged on 28/11/2012 at 11:26 (continuation)
Unit/Lot no Price Contract Date
------------------------------------------------------------
TS3-520N $6600000 28/11/2012
TS3-521X $6600000 28/11/2012
TS3-522L $6700000 28/11/2012
TS3-523C $6600000 28/11/2012

[opmi]

smallcaps, you are quite detailed in your research. You unearthed something quite interested.

If INLIS record for this transaction is correct, Eastern is required by law to hold an EGM as this is a major disposal ($26.5m sale vs $52m mkt cap)
Probably Eastern granted an option to CKH, that is yet to exercise. Even that should be announced. Unless this is considered as in ordinary course of business (?)
Anyone can help enlighten?

SGX Rulebooks.

Chapter 10 Acquisitions and Realisations

1014

(1) Where any of the relative figures as computed on the bases set out in Rule 1006 exceeds 20%, the transaction is classified as a major transaction. The issuer must, after terms have been agreed, immediately announce the information required in Rules 1010, 1011, 1012 and 1013, where applicable.

(2) A major transaction must be made conditional upon approval by shareholders in general meeting. A circular containing the information in Rule 1010 must be sent to all shareholders. This rule does not apply in the case of an acquisition of profitable assets if the only limit breached is Rule 1006(b). In ascertaining whether or not the issuer is required to seek shareholders' approval for the transaction, the issuer should refer to the general principles set out in Practice Note 10.1. Where the issuer is unclear, the issuer should consult and clarify with the Exchange as soon as possible.

(3) In the case of REITs and property trusts, a disposal of properties is considered to be in its ordinary course of business, provided that the relative figures as computed on the bases set out in Rule 1006 do not exceed 50% based on the aggregate value of all disposals in the last twelve months. In the event any of the relative figures calculated under Rule 1006 on an aggregated basis is 50% or more, the REIT/property trust must seek unitholders' approval under Rule 1014.

Notwithstanding that the disposal of property may be considered to be in the ordinary course of business, the REIT/property trust will have to comply with Rule 1010.

(4) Where a major transaction is not completed or is rescinded by any party to the transaction due to any reason, the issuer must immediately announce via SGXNET the following:
(a) the reasons for the non-completion or rescission of the transaction;
(b) the financial impact of the non-completion or rescission on the issuer; and
© the possible course(s) of action to protect the interests of the shareholders of the issuer. Notwithstanding this, the issuer must provide timely updates on the specific course of action including its progress and outcome.

1006

A transaction may fall into category (a), (b), © or (d) of Rule 1004 depending on the size of the relative figures computed on the following bases:—
(a) The net asset value of the assets to be disposed of, compared with the group's net asset value. This basis is not applicable to an acquisition of assets.
(b) The net profits attributable to the assets acquired or disposed of, compared with the group's net profits.
© The aggregate value of the consideration given or received, compared with the issuer's market capitalisation based on the total number of issued shares excluding treasury shares.
(d) The number of equity securities issued by the issuer as consideration for an acquisition, compared with the number of equity securities previously in issue.

1019

The following rules apply to options to acquire or dispose of assets:—
(1) If the option is not exercisable at the discretion of the issuer, shareholder approval must be obtained at the time of grant of the option.

(2) If the option is exercisable at the discretion of the issuer and the exercise terms are fixed at the time of grant, shareholder approval must be obtained at the time of grant of the option.

(3) If the option is exercisable at the discretion of the issuer and the exercise terms are not fixed, but are based on factors existing at the time of exercise, the issuer must obtain shareholder approval at the time of exercise of the option. At the time of acquisition or grant of the option, the issuer must make an appropriate announcement.

[smallcaps]

smallcaps, you are quite detailed in your research. You unearthed something quite interested.

If INLIS record for this transaction is correct, Eastern is required by law to hold an EGM as this is a major disposal ($26.5m sale vs $52m mkt cap)
Probably Eastern granted an option to CKH, that is yet to exercise. Even that should be announced. Unless this is considered as in ordinary course of business (?)
Anyone can help enlighten?

SGX Rulebooks.

Chapter 10 Acquisitions and Realisations

1014

(1) Where any of the relative figures as computed on the bases set out in Rule 1006 exceeds 20%, the transaction is classified as a major transaction. The issuer must, after terms have been agreed, immediately announce the information required in Rules 1010, 1011, 1012 and 1013, where applicable.

(2) A major transaction must be made conditional upon approval by shareholders in general meeting. A circular containing the information in Rule 1010 must be sent to all shareholders. This rule does not apply in the case of an acquisition of profitable assets if the only limit breached is Rule 1006(b). In ascertaining whether or not the issuer is required to seek shareholders' approval for the transaction, the issuer should refer to the general principles set out in Practice Note 10.1. Where the issuer is unclear, the issuer should consult and clarify with the Exchange as soon as possible.

(3) In the case of REITs and property trusts, a disposal of properties is considered to be in its ordinary course of business, provided that the relative figures as computed on the bases set out in Rule 1006 do not exceed 50% based on the aggregate value of all disposals in the last twelve months. In the event any of the relative figures calculated under Rule 1006 on an aggregated basis is 50% or more, the REIT/property trust must seek unitholders' approval under Rule 1014.

Notwithstanding that the disposal of property may be considered to be in the ordinary course of business, the REIT/property trust will have to comply with Rule 1010.

(4) Where a major transaction is not completed or is rescinded by any party to the transaction due to any reason, the issuer must immediately announce via SGXNET the following:
(a) the reasons for the non-completion or rescission of the transaction;
(b) the financial impact of the non-completion or rescission on the issuer; and
© the possible course(s) of action to protect the interests of the shareholders of the issuer. Notwithstanding this, the issuer must provide timely updates on the specific course of action including its progress and outcome.

1006

A transaction may fall into category (a), (b), © or (d) of Rule 1004 depending on the size of the relative figures computed on the following bases:—
(a) The net asset value of the assets to be disposed of, compared with the group's net asset value. This basis is not applicable to an acquisition of assets.
(b) The net profits attributable to the assets acquired or disposed of, compared with the group's net profits.
© The aggregate value of the consideration given or received, compared with the issuer's market capitalisation based on the total number of issued shares excluding treasury shares.
(d) The number of equity securities issued by the issuer as consideration for an acquisition, compared with the number of equity securities previously in issue.

1019

The following rules apply to options to acquire or dispose of assets:—
(1) If the option is not exercisable at the discretion of the issuer, shareholder approval must be obtained at the time of grant of the option.

(2) If the option is exercisable at the discretion of the issuer and the exercise terms are fixed at the time of grant, shareholder approval must be obtained at the time of grant of the option.

(3) If the option is exercisable at the discretion of the issuer and the exercise terms are not fixed, but are based on factors existing at the time of exercise, the issuer must obtain shareholder approval at the time of exercise of the option. At the time of acquisition or grant of the option, the issuer must make an appropriate announcement.

Seems like EHL used to announce such sales but very long ago... Interestingly also Tras street and look at the prices then and now!!!

EASTERN HOLDINGS LIMITED
Co. Reg No. 198105390C
COMPLETION OF SALE OF PROPERTIES KNOWN AS 71, 71A AND 71B TRAS
STREET SINGAPORE BY MONTEREY PTE. LTD., A WHOLLY OWNED SUBSIDIARY OF
EASTERN HOLDINGS LIMITED
The Board of Directors of Eastern Holdings Limited (the “Company”) refers to the
announcement dated 9 January 2008 relating to the sale by Monterey Pte. Ltd. (a wholly
owned subsidiary of the Company) of its properties known as 71, 71A and 71B Tras Street
Singapore (“the Property”) for a total consideration of S$4,100,000.00.
The Company wishes to announce that the sale of the properties have been completed on
19 March 2008.
The Sale is expected to have a positive impact on the results of Group for the financial year
ending 31 March 2008.
By Order of the Board
Stephen Tay Thian Boon
Director
20 March 2008

http://info.sgx.com/webcoranncatth.nsf/V...2001A9740/$file/Announcement-CompletionofSaleofpropertyTrasStreet200308.pdf?openelement

[opmi]

Hi smallcaps, just send u a pm.