Tuan Sing Holdings

[propertyinvestor]

Hi Property Investor

Would like to check on your assumptions to derive the $345mil in development value.

The attached document mentioned that the NLA is 128,000 sq ft for Robinson Tower. I presumed this figure should pertain to office space.

Then can we assume that the rest of the GFA will be allocated for retail mall?

Many tks.

This is another Cheap and inexpensive property counter to own with a Large exposure to commercial and Hospitality Asset.

The redevelopment of Robinson Towers and International Factors building into a Grade A office building is likely to cost 125million but it adds around 345Million in development value to the NAV of Tuan Sing. (This is based on a calculation of the Net leasable area of the new Robinson Towers at 220000sqf valued at 3500psf)

Seletar Park Residence is 93% sold to date while Sennet is about 65% sold.

RNAV is likely to hit a record of 90c/share when you factor in the profits from the development projects.

Daiwa's NLA seems to be a rather weird estimate. THe GFA of the building is 257k Sqf. If we factor in a void or unusable area of 10% of the GFA (Which is the standard case for most office buildings), the NLA should be around 231ksqf. I added another 10k sqf discount to the estimate just to be conservative as I do not have access to the raw building plans.


Freehold Retail strata units usually command a premium in the CBD area and are usually priced around 6000psf.

In my calculations, I decided to just value all at 3500psf which is a fair valuation estimate taking into account nearby comparables such as Oxley's Robinson development.

[Curiousparty]

how do we normally account for "car parking space" in GFA?
Does the owner of the development reap revenue from leasing out car park management?

Has anyone calculated the profitability of car parking business before?

Tks.

Hi Property Investor

Would like to check on your assumptions to derive the $345mil in development value.

The attached document mentioned that the NLA is 128,000 sq ft for Robinson Tower. I presumed this figure should pertain to office space.

Then can we assume that the rest of the GFA will be allocated for retail mall?

Many tks.

This is another Cheap and inexpensive property counter to own with a Large exposure to commercial and Hospitality Asset.

The redevelopment of Robinson Towers and International Factors building into a Grade A office building is likely to cost 125million but it adds around 345Million in development value to the NAV of Tuan Sing. (This is based on a calculation of the Net leasable area of the new Robinson Towers at 220000sqf valued at 3500psf)

Seletar Park Residence is 93% sold to date while Sennet is about 65% sold.

RNAV is likely to hit a record of 90c/share when you factor in the profits from the development projects.

Daiwa's NLA seems to be a rather weird estimate. THe GFA of the building is 257k Sqf. If we factor in a void or unusable area of 10% of the GFA (Which is the standard case for most office buildings), the NLA should be around 231ksqf. I added another 10k sqf discount to the estimate just to be conservative as I do not have access to the raw building plans.


Freehold Retail strata units usually command a premium in the CBD area and are usually priced around 6000psf.

In my calculations, I decided to just value all at 3500psf which is a fair valuation estimate taking into account nearby comparables such as Oxley's Robinson development.

[propertyinvestor]

how do we normally account for "car parking space" in GFA?
Does the owner of the development reap revenue from leasing out car park management?

Has anyone calculated the profitability of car parking business before?

Tks.

Hi Property Investor

Would like to check on your assumptions to derive the $345mil in development value.

The attached document mentioned that the NLA is 128,000 sq ft for Robinson Tower. I presumed this figure should pertain to office space.

Then can we assume that the rest of the GFA will be allocated for retail mall?

Many tks.

This is another Cheap and inexpensive property counter to own with a Large exposure to commercial and Hospitality Asset.

The redevelopment of Robinson Towers and International Factors building into a Grade A office building is likely to cost 125million but it adds around 345Million in development value to the NAV of Tuan Sing. (This is based on a calculation of the Net leasable area of the new Robinson Towers at 220000sqf valued at 3500psf)

Seletar Park Residence is 93% sold to date while Sennet is about 65% sold.

RNAV is likely to hit a record of 90c/share when you factor in the profits from the development projects.

Daiwa's NLA seems to be a rather weird estimate. THe GFA of the building is 257k Sqf. If we factor in a void or unusable area of 10% of the GFA (Which is the standard case for most office buildings), the NLA should be around 231ksqf. I added another 10k sqf discount to the estimate just to be conservative as I do not have access to the raw building plans.


Freehold Retail strata units usually command a premium in the CBD area and are usually priced around 6000psf.

In my calculations, I decided to just value all at 3500psf which is a fair valuation estimate taking into account nearby comparables such as Oxley's Robinson development.

They are usually thrown under void and unusable area and are not part of the NLA. usually its around 1% or less of the GFA

[Curiousparty]

Hi Property Investor

May I check how do u value Tuan Sing's 2 hotels in Australia?

tks.

[Curiousparty]

Any reason why the company or CFO used such a conservative PSF to value the new redeveloped Robinson tower and how much of NAV from redeveloped Robinson has been reflected in the current book NAV?

Many tks.

You all should Talk to the indonesian bosses and try to convince them to unlock more value in TS. The CFO is so conservative. But if the indo bosses gives him the leeway to try out more risky ventures, im sure he will do it.

Assuming all 3 development projects are fully sold, SPR, CPR and Sennet will likely contribute 115million in NET profit for Tuan Sing in the next 4 years.

CFO also confirmed they use an ultra conservative valuation for the redevelopment of Robinson towers. So if you mark to market it at today's market rate, its worth 2.5 times more.

I don't have the impression that the CFO is conservative, agree that he certainly have the capacity to do more. But the one driving the aggression should be the CEO and not the CFO right?

I believe he mentioned that the valuation was forward, done based on Robinson Tower when completed. One of the building was recently valued according the prevailing market pricing and the gain is evident in the NAV. The good EPS was largely due to that.

Yes there was an increase in the valuation of Robinson towers as it was done with the assumption of the new building being constructed. But the price psf they used was 2600psf for both the commercial and office space. Oxley's freehold development in the vicinity is transacting at 3000-3800psf and the retail units in the vicinity is going at a minimum of 4000psf.

The CEO is based in Jakarta.

[greengiraffe]

http://infopub.sgx.com/FileOpen/TBA-1409...eID=313451

$ they have a lot so used money to resolve dispute... anyway, Perth hotels are a goner - just look at LKH's ...

Melbourne... unknown...

Don't expect the Indons here to unlock wealth, they will be more than happy to lock up more wealth...

Vested
Odd Lots

[greengiraffe]

Morgan checks out of Hyatt
BEN WILMOT AND LISA ALLEN THE AUSTRALIAN SEPTEMBER 04, 2014 12:00AM

Lisa Allen

Property & Tourism Reporter
Sydney
Grand Hyatt, Melbourne. Outside shot.
The Grand Hyatt, Melbourne. Source: Supplied
INVESTMENT banking heavyweight Morgan Stanley will exit its longstanding Australian hotel holding, having sold its half interest in the $583 million Grand Hotel Group.

The move will end a long-running battle with co-owner Singapore-listed Tuan Sing Holdings about the future of the group’s landmark Australian hotels — Melbourne’s opulent Grand Hyatt and the Hyatt Regency Perth.

It is also just a week since a ­separate Morgan Stanley real ­estate fund unveiled plans to wind up the bulk of its Arena property business, divesting $550m of real estate across three funds.

Together, the moves will leave only the future of Morgan Stanley’s flagship local holding, the Investa Property Group, which controls about $8 billion of office property, to be decided. The bank is expected to make clear Investa’s future next year.

In the hotel play, Tuan Sing, has forked out $124.04m to acquire the controlling stake in the Grand Hotel Group from a Morgan Stanley fund. That payment was based on the $276.6m net book value of the hotel entity, with the Melbourne and Perth hotels were valued at $583m.

The Australian hotel market is running hot, with a Chinese insurance company in due diligence to buy the Sheraton on the Park in Sydney’s Elizabeth Street for about $465m. Further, a local ­hotelier Jerry Schwartz last week lined up to pay $360m for a new Sofitel being developed at Sydney’s Darling Harbour.

Tuan Sing looks to be positioning itself for long-term ownership of the Melbourne and Perth hotels as waves as Asian investors flood into buy Australian hotel assets.

Chief executive William Liem said more than $70m had been spent on renovating and upgrading the two hotels over the past few years. The acquisition will mean Australian assets will represent about 35 per cent of Tuan Sing’s total property value and Mr Liem flagged plans to make Grand Hotel Group more profitable in future.

The disagreement between Morgan Stanley and Tuan Sing Holdings dates back to late 2006. It is believed Morgan Stanley had wished to sell the two hotels to capitalise on the fevered state of the hotel property market and return funds to investors. The GHG venture had reaped healthy returns to investors given the disposal of Hyatts in Canberra and Adelaide for about $155m in 2008.

Under the latest deal, Morgan Stanley has agreed to withdraw legal proceedings commenced against Tuan Sing in connection with an “alleged deadlock’’ that the bank claimed arose under a ­security holders agreement.

Tuan Sing denied the allegations and under the latest deal the parties agreed to release each other from all claims.

[propertyinvestor]

Any reason why the company or CFO used such a conservative PSF to value the new redeveloped Robinson tower and how much of NAV from redeveloped Robinson has been reflected in the current book NAV?

Many tks.

You all should Talk to the indonesian bosses and try to convince them to unlock more value in TS. The CFO is so conservative. But if the indo bosses gives him the leeway to try out more risky ventures, im sure he will do it.

Assuming all 3 development projects are fully sold, SPR, CPR and Sennet will likely contribute 115million in NET profit for Tuan Sing in the next 4 years.

CFO also confirmed they use an ultra conservative valuation for the redevelopment of Robinson towers. So if you mark to market it at today's market rate, its worth 2.5 times more.

I don't have the impression that the CFO is conservative, agree that he certainly have the capacity to do more. But the one driving the aggression should be the CEO and not the CFO right?

I believe he mentioned that the valuation was forward, done based on Robinson Tower when completed. One of the building was recently valued according the prevailing market pricing and the gain is evident in the NAV. The good EPS was largely due to that.

Yes there was an increase in the valuation of Robinson towers as it was done with the assumption of the new building being constructed. But the price psf they used was 2600psf for both the commercial and office space. Oxley's freehold development in the vicinity is transacting at 3000-3800psf and the retail units in the vicinity is going at a minimum of 4000psf.

The CEO is based in Jakarta.

They prefer to value on the conservative side than on the bullish side. This is of course allowed under a recognised residual valuation method

[propertyinvestor]

And we have the esteemed Koh Wee Meng purchasing a 5% stake in Tuan Sing from the open market!

http://infopub.sgx.com/FileOpen/_eFORM3V...eID=316107

[greengiraffe]

Top 5 owners by shares held Number of shares held Percent of shares held
Nuri Holdings (S) Pte. Ltd. 546,383,829 46.46%
Siong, Lim Tek 55,326,150 4.7%
Lian, Go Giok 27,104,550 2.3%
Dimensional Fund Advisors LP 24,869,685 2.11%
Lion Global Investors Limited 12,486,320 1.06%

Koh can be a wrong term investor if he so wish to... Indonesian owners have little fear of losing control...

Odd Lots Vested
GG