When The Laurels' TOP in 3Q2013
Sing Holdings will have around $230-240m worth of shareholders fund. It will mainly own 3 assets, 2 plots of land and office units in Biz Tech Building.....
The Robin plot of land cost around $180m and Punggol around $170m(70% stake will be around $120m) and cost of office units are about $30m.......which meant a total of $330m ($180+$120+$30).
This meant the company would need to take up about $100m debt since the shareholders fund is around $230m(3Q2013). During the AGM, boss said the company try to follow a net debt to equity ratio of around 1(pg 88 of annual report) which meant the company could take on another $130m debt.....but let's not forget about the possible revised plot ratio of Robin, they will have to top up cash if they decided to go for higher plot ratio plus development costs for Robin and Punggol EC .......so if they adhere to the policy, I doubt they would be aggressive in land bids till more clarity on the plot ratio (during AGM, seems like they are going for EC now since first timers are not affected by curbs....let's see if the company bids for the next EC on may 9)
As for the debt level and cash flow.....
FY 2012 $673m worth of development properties of which it includes Robin($180m) and Punggol ($170m) two plots of land....meaning the other $320m worth of development properties are due to The Laurels....As we know the company already accounted for 70% progressive payments of The Laurels as of FY2012 and that it would TOP in 3Q2013. This meant that the company will be able to collect at least $320m by 3Q2013....together with its $57m cash on hand($45m project account), company will be able to pare down its debt levels significantly.
http://www.ura.gov.sg/lad/HBG/progressPayments.htm
my two cents worth.....
(if your story is clear, you will know what you are doing....whether you should buy or whether you should sell)
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