Sim Lian

[stilicon]

About your general remark, you are definitely right. Shareholders should always be in a position to decide themselves how to reinvest their due. Yet, for fiscal "optimization" or others weak reasons, it is not always the case.

As for the REITs, they have their flaws. In its last half-year report, the REIT you mentioned, speaks of a gearing (asset gearing I presume) of about 33,5%. Besides, the discrepancy between the interests of the managers and those of the unitholders can create serious problems. I am sure you understand well that it is completely different...

Cannot fault them for searching for new business to park their hard earned $.

However, they should return excess $ and let investors decide on what they prefer to do.

If you really prefer to invest in neighbourhood malls, Shopping Centre Australasia will be the listed REIT spinoff from Woolworths for direct considerations:

http://www.scaproperty.com.au/

Vested
Odd Lots

[Stocker]

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

[greengiraffe]

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

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

[greengiraffe]

Asian groups lead $200m mall charge
BEN WILMOT THE AUSTRALIAN FEBRUARY 27, 2014 12:00AM

The Woolworths Shopping Centre in Lucas. Source: Supplied
OFFSHORE groups are setting the early pace in the shopping centre market, with a Singapore-listed investment group and an Asian investor buying more than $200 million worth of property.

In the largest play, retail giant Woolworths has offloaded a $133m shopping centre portfolio to Singapore-listed Sim Lian Group.

Separately, a private Asian group is circling Vinta Group’s Campsie Central in a $66m deal. The centre in Sydney’s western suburbs is anchored by a Big W and Tong Li supermarket.

Vinta, which also has centres in Queensland - Pialba Place located in Hervey Bay and The Strand at Coolangatta on the Gold Coast - declined to comment. A deal at this level would reflect a yield in the 7 per cent range - a big tightening on market expectations.

Singapore’s Sim Lian Group said it had expanded its regional footprint with the purchase of five neighbourhood shopping centres on the eastern seaboard.

“This acquisition is a milestone in Sim Lian Group’s journey of driving diversification across the region and investment portfolio. It represents our entry into the Australian shopping centre market and we are confident that it will further enhance the quality, diversity and income profile of our investment portfolio,” Sim Lian Group executive director Kuik Sing Beng said.

The centres are at Lake Munmorah and Jordan Springs in NSW, in Lucas and Tarneit Gardens in Victoria and at Rothwell in Queensland.

Construction of four out of the five shopping centres - those at Lake Munmorah, Lucas, Tarneit and Jordan Springs - has been completed, while the centre in Rothwell is expected to be finished in April. The properties span a total gross lettable area of about 28,875sq m and the portfolio includes land of about 4.8ha adjoining the centres at Tarneit and Lake Munmorah.

This gives Sim Lian Group future development and expansion opportunities.

The portfolio was sold in an off-market deal by Woolworths’s property subsidiary Fabcot, which is tipped to sell more centres.

Each centre is anchored by a Woolworths supermarket, and the retailer occupies about 71 per cent of the portfolio’s total GLA. The leasebacks for the Woolworths supermarkets averages 28 years.

The portfolio is Sim Lian Group’s second Australian acquisition - last September it bought a prime building in Margaret Street in the heart of Sydney’s financial precinct.

Sim Lian Group has been building homes for families in Singapore for more than 35 years and shifted into property development in 2001.

Sim Lian told The Australian that its local investments were “part of our long-term strategy to expand and diversify our portfolio regionally across construction, property development and property investment in a prudent manner”.

“Australia is an attractive proposition, which provides income stability attributed to the maturity and transparency of the market. This is reinforced by the country’s economic and political stability, and we are confident that these acquisitions will enhance value for our shareholders,” the group said.

[greengiraffe]

http://infopub.sgx.com/FileOpen/140320_P...eID=289529

Sim lian keng ka liao - vision exchange to have 2 levels of f&b and medical suites. Office to be launched average 2150 and 4498 for medical and f&b units. Location inferior to Westgate so lkh got a deal again?

[greengiraffe]

INVESTORS TURN TO COMMERCIAL UNITS AND OVERSEAS OPTIONS
25-storey integrated project in Jurong attracts interest

Published on Mar 21, 2014

By Cheryl Ong

COMMERCIAL units have been a hit with investors over the past year so the launch of an integrated development in the Jurong Gateway district is likely to keep interest on the boil.

Sales for the strata-titled Vision Exchange in Venture Drive start today for those who have expressed buying interest.

Walk-in investors can secure units in the 25-storey project at the official launch tomorrow.

There will be 250 units released for sale in this first phase, said developer Sim Lian Group in a statement yesterday.

Market observers said the supply of strata-titled commercial units in the vicinity is limited but buying and leasing demand for office units in Jurong is untested.

The 740-unit project comprises 53 medical suites spanning 183 to 1,163 sq ft; 47 retail units of 301 to 1,023 sq ft; and 640 office units ranging from 441 to 1,690 sq ft.

Office units will cost $2,150 per sq ft (psf) on average, while medical suites and retail units will go for about $4,498 psf, said Sim Lian. The developer's price list obtained by The Straits Times showed that Sim Lian had factored in an 18 per cent discount at the 99-year leasehold project.

Marketing agents told The Straits Times that office units from the sixth to 12th floors will be released for sale in this phase and major health-care groups have indicated their interest in bulk purchases of medical suites.

The development is expected to be completed in 2017.

Property experts said the project could benefit from the fact that the commercial market has escaped property cooling measures like the additional buyer's stamp duty and seller's stamp duty.

Ms Alice Tan, research head at property firm Knight Frank, said demand is likely to come from end-users who want to take advantage of Jurong Lake District's growth potential.

But she pointed out that investors could be mindful of leasing competition from the nearby International Industrial Park, where rents are cheaper. "Businesses that want to have their headquarters set up in Jurong East because they have factories in the area may want to have an office there.

"There has been some leasing interest for office space in Jem recently, so that could indicate there is demand for office space in the area."

ocheryl@sph.com.sg

[greengiraffe]

HOT SPOT
Strong interest in Jurong Gateway strata-titled project

Area's potential as business hub drives sales in Vision Exchange, say analysts

Published on Mar 29, 2014


The 740-unit Vision Exchange in the Jurong Gateway District has sold at least 70 per cent of the 250 units released at last weekend's launch. The 25-storey project comprises medical suites, F&B units and offices. -- PHOTO: SIM LIAN

By Cheryl Ong

THE Jurong Gateway District's potential as a new business hub appears to be driving strong interest in the area's first strata-titled commercial project.

The 740-unit Vision Exchange has sold at least 70 per cent of the 250 units released at last weekend's launch, The Straits Times found when it visited the showflat at Venture Avenue on Wednesday.

Office units were sold for an average price of $2,150 per sq ft (psf), while medical and retail units went for about $4,498 psf on average, the project's developer, Sim Lian, said in a statement.

The 25-storey project, which comprises 53 medical suites, 47 food and beverage units and 640 offices, has a total gross floor area of about 688,890 sq ft.

R'ST Research director Ong Kah Seng said the demand for units at the project was "understandable" as there is a lack of strata offices available for companies seeking better-grade suburban offices.

Government agencies such as the Ministry of National Development, the Building and Construction Authority and Agri-Food and Veterinary Authority of Singapore have announced plans to lease space at a 345,000 sq ft office tower at Jem, built by Australian developer LendLease.

This means companies supporting these agencies will be keen to shift their operations there, experts said.

This should also spur rental demand for residential properties from employees working in the area, they added.

Investors should expect reasonable rental yields of 3 per cent to 4 per cent, said Mr Roy Chong, head of business space at real estate agency PropNex.

However, investors will benefit more from the property's capital appreciation as the area develops, said Mr Chong.

Mr Ong added that the project's medical suites will benefit from their proximity to the Ng Teng Fong Hospital and Jurong Community Hospital, and that medical tourists will move west with the completion of Resorts World Singapore's hotel.

However, he cautioned that suburban strata office space is still an untested investment as there is still uncertainty over what reasonable rents should be.

"A realistic rent for new offices in Jurong East is about $6.50 psf a month," Mr Ong said.

"But if rents have to ultimately be pegged at affordable rates for tenants, it might not bring in desired returns for investors who bought strata offices at high prices."

ocheryl@sph.com.sg

VISION EXCHANGE

Number of units: 740 over 25 floors - 53 medical suites, 47 food and beverage units and 640 offices.
Average price of office units: $2,150 psf.
Average price of medical units: $4,498 psf.

[ngcheeki]

Purchase of 7 units in Vision Exchange made by controlling Kuik family members with the same discount given to the public.

"The options to purchase are issued on the basis of the same pricing and discount offered to the public
and no special or preferential terms will be accorded to the Purchasers for the purchase of the
abovesaid units."

http://infopub.sgx.com/FileOpen/Announce...eID=289621

[greengiraffe]

http://www.businesstimes.com.sg/premium/...s-20140905

PUBLISHED SEPTEMBER 05, 2014
Sim Lian tops bids for EC site, beating market expectations
Its S$361 psf ppr bid for Choa Chu Kang plot beats 7 others but is close to average price for inferior sites in Feb
BYKALPANA RASHIWALA
kalpana@sph.com.sg @KalpanaBT

Located about 550 metres from Choa Chu Kang MRT Station and Bus Interchange and Lot One Shoppers' Mall, the 1.9-hectare plot drew eight bids, with the highest at S$361.08 psf ppr from Sim Lian Land - slightly above market expectations - PHOTO: SPH
THE latest state tender for an executive condominium (EC) site in Choa Chu Kang Drive shows that developers would still make a beeline for attractive sites.
Located about 550 metres from Choa Chu Kang MRT Station and Bus Interchange and Lot One Shoppers' Mall, the 1.9-hectare plot drew eight bids, with the highest at S$361.08 psf ppr from Sim Lian Land - slightly above market expectations.
JLL national director Ong Teck Hui, for instance, had expected the site to draw 5-6 bids with the winning bid at S$320-350 psf ppr. However, he added: "I see a mix of both caution and optimism. The optimism is in the top bid being higher than expected; the caution is the top bid being pretty close to the S$357 psf ppr average price for the two adjacent Choa Chu Kang Grove EC plots sold in February - despite the latest site being more attractive."
The pair of Choa Chu Kang Grove sites are about 1.1 km from Choa Chu Kang MRT Station.

[opmi]

Sim Lian usually not aggressive and like to 'pick up durians' bid.

Can mean other developers balls shrinking or redeploy to Oz more.


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