Ho Bee Land (formerly: Ho Bee Investment)

[¯|_(ツ)_/¯]

HoBee@2.95

Question 2: Are you aware of any other possible explanation for the trading? Such information may include public circulation of information by rumours or reports.

Response: We understand that DBS Bank has initiated coverage on the Company and a report was issued today, 10 June 2021.
https://links.sgx.com/FileOpen/HBL_Annt_...eID=670788





Stay home and stay safe, everyone.

[¯|_(ツ)_/¯]

Ho Bee@286 Yanlord@120

Joint press release

Yanlord and Ho Bee are set to jointly develop a site located in Hongqiao District, Tianjin, the People’s Republic of China (“PRC”) into a new high-end residential development with ancillary community retail space and educational facilities with a total gross floor area (“GFA”) of approximately 117,100 square metres (“sqm”).

Mr. Zhong Sheng Jian, Yanlord’s Chairman and Chief Executive Officer, said, “The latest land acquisition in Tianjin reiterates our commitment to and confidence in the Tianjin real estate market, and will build on our extensive track record of developing quality residences which Tianjin citizens have grown to trust and support. Capitalising on our core competencies as well as the synergistic benefits from our partner – Ho Bee, we believe that the site will complement our existing initiatives and further strengthen our presence within the Bohai Rim real estate market.”

Mr. Chua Thian Poh, Ho Bee’s Chairman and Chief Executive Officer, said, “We are very pleased to continue our partnership with Yanlord, which has a wealth of experience in developing and marketing premium residential projects in Tianjin. Leveraging on their expertise, we are confident that the proposed residential project will be another successful cooperation between Ho Bee and Yanlord. Furthermore, this joint development is in line with Ho Bee’s strategic policy to diversify overseas.”
https://links.sgx.com/FileOpen/YLG%20_Pr...eID=672688

Stay home and stay safe, everyone.

[D123]

Time for a short trip down memory lane. 

Below are the total returns for a handful of listed property developers on the SGX for two slightly different periods of time. Q2 2009 is when the SG private property price index bottomed. 31 Dec 2010 is the date I joined this forum.

   

Everyone is going to have their own takeaways from looking at this. Here are some of mine:

1. This is minor support for the argument that active investing is alive and well. Ho Bee, Lian Beng, Low Keng Huat have all done quite well relative to peers and thier investment merits have been some of the more widely discussed ones in this forum. Concerns over Oxley have also turned out to be warranted.

2. This table masks the volatility in returns. Look up the trailing 10-year returns of this group and one will see that many of these have not done well in the last decade. As a group, their average total returns have been just 12% (~1% CAGR) compared to 48% for the STI.

3. Apart from hot money from overseas investors and speculators, some of the main drivers of residential property prices have been (i) population growth (ii) wage growth (iii) ease of credit. This will likely remain so going forward.

4. Investing in physical property could have been a totally viable alternative. The private property index has roughly doubled since the Q2 2009 bottom. Assuming an LTV ratio of 80% and a 20-year mortgage with 4% interest rates, if you had bought at Q2 2009 and sold today, you would have gotten a 6% IRR. If you had leased it out and covered half your monthly mortgage payments, IRR would have been 10.6%. Before transaction fees of course.

5. Even better, if you had listened to Warren and bought America (S&P 500) at Q2 2009, your CAGR would have been 13,7% up until now. I know he said it in Oct 2008, but the S&P 500 was around the same level then so the point stands.

Despite all the ups and downs, the period since the GFC has been kind to the active SG property investor. Not generous, but kind. May those of you who are one reflect, live long and prosper.