Hotel Properties

[cif5000]

Since the Offeror intention is to keep listing, Fu family can participate in whatever upside WITHOUT being in any Offer.
So no incentive to counter-offer.

Since it is a Wheelock and Ong effort, it has something to do with redevt of that Orchard Road stretch. Fu family cannot unlock any value
without Wheelock help. The big car park is tumbling block. And Ong seems to be favoured by the Govt.

The question is, will Fu sit still? He risks losing control of the family business when OBS teamed up with Wheelock. If it is for Orchard Rd, a JV with Wheelock will suffice, isn't it?

Already lose control already....OBS run the show...

Car Park is in the middle of HPL and Wheelock...

41% vs 29%
Game not over yet.

At the current price ($3.65), the consortium is unlikely to receive any offer acceptance.

[thefarside]

The question is, will Fu sit still? He risks losing control of the family business when OBS teamed up with Wheelock. If it is for Orchard Rd, a JV with Wheelock will suffice, isn't it?

Maybe the situation within HPL got to a point where OBS is forcing a play from Fu to either sell to him, or to buy him (OBS) out at a reasonable price. Wheelock would have common motivation to partner this as they may also want out, after all this is the late David Lawrence's play and new management may have other need for the few hundred million locked in the HPL stake.

[opmi]

The question is, will Fu sit still? He risks losing control of the family business when OBS teamed up with Wheelock. If it is for Orchard Rd, a JV with Wheelock will suffice, isn't it?

Maybe the situation within HPL got to a point where OBS is forcing a play from Fu to either sell to him, or to buy him (OBS) out at a reasonable price. Wheelock would have common motivation to partner this as they may also want out, after all this is the late David Lawrence's play and new management may have other need for the few hundred million locked in the HPL stake.

if the new Wheelock mgt know of any need for a few 100 millions, then should not have plonked into Panorama @ AMK. Dumb mistake.

[greengiraffe]

The following is my conspiracy theory:

I think there may be a fallout between OBS and Fu family else taking HPL private would be a done deal between OBS/Wheelock/Fu - collectively they own 70%

Asset rich co like HPL has plenty of value to be extracted given its diverse asset base globally

I don't think Fu has benefited from NSL alongside with OBS / David Ban. Fu probably has been consulted by OBS on the current deal and likely didn't agree on this valuation.

Given their low profile in Singapore for so many years and they have lived off HPL for so long, I don't expect them to have resources to embark on huge redevelopment plans but certainly they will be looking for better value to exit especially when they have no fresh resources to participate in OBS/Wheelock grand plans for the future.

It has taken 8 years since Wheelock first acquired HPL stake from Quek Leng Chan for a consortium to hatch, hence there should be more concrete plans from here for grand plans to materialise. 5 years in Singapore can result in quite dramatic changes as Singapore is well known for its efficiency of implementing changes.

Vested
GG

Anyway this is my imagination and will see how things go. hpl - obs/fu are very private people in singapore corporate scene and hence not much is known about them.

[thefarside]

Sorry uncle GG, have to disagree with you on the Fu family having no resources here. They are one of those hidden billionaire families because people tend to have no public way of counting their fortune...

[greengiraffe]

Hi Nephew/Niece,

I hope I m proven wrong so that we can see fireworks unlocking value for minorities... like WBL and better still NSL

Vested
GG

Sorry uncle GG, have to disagree with you on the Fu family having no resources here. They are one of those hidden billionaire families because people tend to have no public way of counting their fortune...

[greengiraffe]

Chinese papers ZB separately added that: Hilton contract for 50 years starting from 1970, ie another 6 more years to go. The restriction of converting from hotel to other development has been removed in 2002. Hence the time for the next stage of planning may have been better now than when Wheelock acquired HPL in 06/07

HPL land redevelopment 'can revive Orchard belt's sleepy end'
PUBLISHED ON APR 17, 2014 1:10 AM


BY CHERYL ONG
THE plots of prime land in Orchard Road owned by Hotel Properties (HPL) could be redeveloped and turned into an integrated development or serviced residences, said property analysts yesterday.

They said the land that now accommodates the Hilton Singapore and Four Seasons hotels, Forum the Shopping Mall, Ming Arcade shopping centre and HPL House could be amalgamated to revive the sleepier end of the shopping belt. Their comments came after local tycoon Ong Beng Seng launched a bid to take HPL private through a partnership with Wheelock Properties.

Mr Ong is the managing director of HPL and directly owns an 18.44 per cent stake. Wheelock owns the Wheelock Place mall, which is separated from HPL's properties by a public carpark. It has a 20.16 per cent stake in HPL.

CIMB analyst Xuan Tan noted in a report that Mr Ong's move would "strategically pave (the) way for future collaborations".

"HPL and Wheelock have long been friendly parties and own complementary assets along Orchard Road. Wheelock Place was refurbished in 2012 and will benefit from potential joint efforts to spruce up the area."

Another analyst, who declined to be named, told The Straits Times that if the takeover succeeds, redevelopment efforts by a single listed firm would be easier.

He said: "Having two listed entities might complicate things as there are two sets of shareholders to please. It certainly makes sense, given how sleepy the stretch from Tanglin Road to Wheelock Place is."

Mr Danny Yeo, group managing director of property firm Knight Frank, said that though HPL's properties are "standalone", they cover a huge plot of land that could accommodate a large mixed development.

"Obviously the properties facing Orchard Road command much better value, and the buildings behind are considered secondary," Mr Yeo added. Rents of ground floor space in Orchard Road are about $15 to $20 per sq ft (psf) on average a month, but such a development could command rents of over $30 psf on average a month, he estimated.

Hotels would be part of the development, Mr Yeo noted, as well as office and retail components.

Century21 chief executive director Ku Swee Yong pointed out that the developer could consider building serviced residences instead of strata-titled condos "if they recognise the value of the Orchard Road address and brand".

However, experts said development costs as well as the different land leases could pose a problem for such a large project. The Forum, for instance, is on freehold land while the Four Seasons Hotel has a 999-year lease.

But Knight Frank chairman Tan Tiong Cheng noted that the authorities might give some incentives such as high plot ratios, "if developers can put their act together". "The whole idea is to encourage a comprehensive development of Orchard Road."

HPL's shares closed 13 cents up at $3.66 while Wheelock's shares closed two cents up at $1.835.

ocheryl@sph.com.sg

[orangetea]

The following is my conspiracy theory: I think there may be a fallout between OBS and Fu family else taking HPL private would be a done deal between OBS/Wheelock/Fu - collectively they own 70% Asset rich co like HPL has plenty of value to be extracted given its diverse asset base globally I don't think Fu has benefited from NSL alongside with OBS / David Ban. Fu probably has been consulted by OBS on the current deal and likely didn't agree on this valuation. Given their low profile in Singapore for so many years and they have lived off HPL for so long, I don't expect them to have resources to embark on huge redevelopment plans but certainly they will be looking for better value to exit especially when they have no fresh resources to participate in OBS/Wheelock grand plans for the future. It has taken 8 years since Wheelock first acquired HPL stake from Quek Leng Chan for a consortium to hatch, hence there should be more concrete plans from here for grand plans to materialise. 5 years in Singapore can result in quite dramatic changes as Singapore is well known for its efficiency of implementing changes. Vested GG Anyway this is my imagination and will see how things go. hpl - obs/fu are very private people in singapore corporate scene and hence not much is known about them.

Btw what was the price wheelock got for the HPL stake?

Cheers!

[jaykay]

The following is my conspiracy theory: I think there may be a fallout between OBS and Fu family else taking HPL private would be a done deal between OBS/Wheelock/Fu - collectively they own 70% Asset rich co like HPL has plenty of value to be extracted given its diverse asset base globally I don't think Fu has benefited from NSL alongside with OBS / David Ban. Fu probably has been consulted by OBS on the current deal and likely didn't agree on this valuation. Given their low profile in Singapore for so many years and they have lived off HPL for so long, I don't expect them to have resources to embark on huge redevelopment plans but certainly they will be looking for better value to exit especially when they have no fresh resources to participate in OBS/Wheelock grand plans for the future. It has taken 8 years since Wheelock first acquired HPL stake from Quek Leng Chan for a consortium to hatch, hence there should be more concrete plans from here for grand plans to materialise. 5 years in Singapore can result in quite dramatic changes as Singapore is well known for its efficiency of implementing changes. Vested GG Anyway this is my imagination and will see how things go. hpl - obs/fu are very private people in singapore corporate scene and hence not much is known about them.

Btw what was the price wheelock got for the HPL stake?

Cheers!

http://www.valuebuddies.com/thread-2322-...l#pid79901

[orangetea]

http://www.valuebuddies.com/thread-2322-...l#pid79901

$1.80
Thanks!