SC Global Developments

[godjira1]

Hmm short-covering?

Have to say I don't think this is the end of the slide for SC Global. Its huge inventory of unsold apartments and large gearing do not make for pleasant reading. Sure it's trading at a discount to RNAV but I think there are better property developers out there to own.

<not vested>

[propertyinvestor]

Hmm short-covering?

Have to say I don't think this is the end of the slide for SC Global. Its huge inventory of unsold apartments and large gearing do not make for pleasant reading. Sure it's trading at a discount to RNAV but I think there are better property developers out there to own.

<not vested>

Eduardo Savering can buy up the whole SC Global and sleep in a different unit at the Marque on Paterson Hill every night.

[godjira1]

heh heh. mr saverin will get lost no?

rental yield for the marq is fairly low, I've been offered 18/mth for a low floor 3003 sq ft but I suspect can press for 15-16 range.

[nsengkia]

Trading halted this morning.

SC Global is one of the high end developers most exposed to the Qualifying Certificate (QC) holders rule. Qualifying Certificate holders have to dispose their units two years after obtaining Temporary Occupation Permit (TOP) or be subjected to a penalty. SC Global's "The Marq" and "Hilltops" are amongst those affected.

According to a DTZ report dated 6 Sep 12, "Transferring unsold units to a holding company is no longer an easy option as this is now subject to the 10% ABSD. QC holders are therefore caught between the rock and the deep blue sea of either paying the penalty or the 10% ABSD."

Not too sure if a full privatization of SC Global will get around the rule since the rule applies only to foreign developers (defined as any developer with at least one shareholder or director who is a foreigner) under the Residential Property Act.

Any Value Buddies care to venture an opinion?

P.S.: Wheelock Properties is still trading and as at the time of this post and they hold 15.87% of SC Global. I believe that they have to be "encouraged" to sell their SC Global shares as well since SC Global will still be a foreign developer if they do not.

P.P.S.: Vested in SC Global sometime ago and in Wheelock Properties as of noon today.

[propertyinvestor]

heh heh. mr saverin will get lost no?

rental yield for the marq is fairly low, I've been offered 18/mth for a low floor 3003 sq ft but I suspect can press for 15-16 range.

Wow you must be a big shot. I want to buy a unit, but cant even get past the pre-qualifying stage to have an interview with Simon Cheong.

---

Trading halted this morning.

SC Global is one of the high end developers most exposed to the Qualifying Certificate (QC) holders rule. Qualifying Certificate holders have to dispose their units two years after obtaining Temporary Occupation Permit (TOP) or be subjected to a penalty. SC Global's "The Marq" and "Hilltops" are amongst those affected.

According to a DTZ report dated 6 Sep 12, "Transferring unsold units to a holding company is no longer an easy option as this is now subject to the 10% ABSD. QC holders are therefore caught between the rock and the deep blue sea of either paying the penalty or the 10% ABSD."

Not too sure if a full privatization of SC Global will get around the rule since the rule applies only to foreign developers (defined as any developer with at least one shareholder or director who is a foreigner) under the Residential Property Act.

Any Value Buddies care to venture an opinion?

P.S.: Wheelock Properties is still trading and as at the time of this post and they hold 15.87% of SC Global. I believe that they have to be "encouraged" to sell their SC Global shares as well since SC Global will still be a foreign developer if they do not.

P.P.S.: Vested in SC Global sometime ago and in Wheelock Properties as of noon today.

SC Global is debt ridden. But its ok, sugar daddy Wheelock can bail it out anytime.

But you know, there are better companies out there compared to SC Global...like Wing Tai for example

[ngcheeki]

Shares price drops 6.5 cents after the following announcement!! As their net gearing already so high (>200%), the failure in oversea expansion does not seem to be me as a bad thing leh!! Why does the share price go down so much???

Market Update on Overseas Expansion and Investment
The Board of Directors of SC Global Developments Ltd (the “Company”) wishes to inform
that the Company has been engaged in discussions on possible investment and equity
participation in various overseas projects, specifically covering countries in the South East
Asia region and some cities in Greater China.
The Company has recently made a bid to acquire an overseas resort hotel development
but was unsuccessful in its offer.
The Company continues to look out for opportunities to expand its overseas business and
its regional diversification plan. However, it should be noted that there is no certainty or
assurance that the business expansion and diversification will result from such
engagements or discussions taking place from time to time.
The Company will make proper disclosure of any overseas acquisition it has secured in
accordance with the SGX-ST Listing Rules at appropriate times. In the meantime,
shareholders of the Company are advised to refrain from taking any action in respect of
their shares in the Company which may be prejudicial to their interests, and to exercise
caution when dealing with shares in the Company.

http://info.sgx.com/webcoranncatth.nsf/V...D000D9B75/$file/SCGlobal_Market_Update_on_Overseas_Expansion_and_Investment.pdf?openelement

[propertyinvestor]

Shares price drops 6.5 cents after the following announcement!! As their net gearing already so high (>200%), the failure in oversea expansion does seem to be me as a bad thing leh!! Why does the share price go down so much???

Market Update on Overseas Expansion and Investment
The Board of Directors of SC Global Developments Ltd (the “Company”) wishes to inform
that the Company has been engaged in discussions on possible investment and equity
participation in various overseas projects, specifically covering countries in the South East
Asia region and some cities in Greater China.
The Company has recently made a bid to acquire an overseas resort hotel development
but was unsuccessful in its offer.
The Company continues to look out for opportunities to expand its overseas business and
its regional diversification plan. However, it should be noted that there is no certainty or
assurance that the business expansion and diversification will result from such
engagements or discussions taking place from time to time.
The Company will make proper disclosure of any overseas acquisition it has secured in
accordance with the SGX-ST Listing Rules at appropriate times. In the meantime,
shareholders of the Company are advised to refrain from taking any action in respect of
their shares in the Company which may be prejudicial to their interests, and to exercise
caution when dealing with shares in the Company.

http://info.sgx.com/webcoranncatth.nsf/V...D000D9B75/$file/SCGlobal_Market_Update_on_Overseas_Expansion_and_Investment.pdf?openelement

It should not even be up to begin with. Only went up because of some rumors on a possible takeover offer or whatever. I shorted it at the matching just now anyway

[cfa]

Their high- end properties not selling well also. If interest rate shoot up , it will have big difficulty to service the loans.

[valueinvestor]

Seems shaky ?

[propertyinvestor]

Their high- end properties not selling well also. If interest rate shoot up , it will have big difficulty to service the loans.

The banks are supporting them lah. Wheelock can always take up any rights issue issued by the company.