Tuan Sing Holdings

[Muser]

why buy
- selling close to cash. 23cents of cash in balance sheet & stock quoting at 32cents
- stock quoting at 50% of book value
- diversified income from rental property, hotels, and few other biz
- net gearing below 1 (conservative for a property developer??)
- yet to be recognized revenue & profit pipeline from development properties (robinson tower, cluny, sennet etc.)

what can go wrong
- gearing goes up
- asset purchase spree at high prices
- property market slumps. NAV goes down

Catalyst to sell
- rev recognition from development projects in pipeline as they get completed in FY 14 & FY15
- sale of non-core assets (not related to core property biz)
- P/B goes closer to 1
- net gearing goes beyond 1 (now 0.8)
- price goes up 20%

[Louhan]

Tuan Sing is indeed an undervalued stock.

[safetyfirst]

Condo 40% sold before launch

Published on Mar 07, 2014


An artist's impression of the 52-unit freehold Cluny Park Residence, which will be launched for sale tomorrow. The high-end condo's location - it faces the Botanic Gardens - is a major selling point. -- PHOTO: TUAN SING

A NEW condominium project in the tony Cluny Park area could be a breath of fresh air for the moribund high-end market when it is launched for sale tomorrow.

The 52-unit freehold Cluny Park Residence opened for preview late last year and has received commitments for 20 units so far, its developer Tuan Sing told a briefing yesterday.

Consultants said the take-up rate of nearly 40 per cent was strong and signalled that the ultra-rich were still keen on projects with attractive locations.

Calling it a "surprisingly strong performance", Savills Singapore research head Alan Cheong said the healthy sales reflected the project's plum Cluny Park Road location.

"You're looking at the ultra rich, who are masters of being able to read the market. They could be buying because they read it as bottoming or close to bottoming out," he added.

The condo faces the Botanic Gardens and is next to the French embassy. It is near prestigious schools such as Nanyang Primary School and Singapore Chinese Girls' School. Prices begin from $2.3 million for a 754 sq ft two-bedder and go up to $8.3 million for a 2,842 sq ft four-bedroom penthouse - or a price range of $2,920 per sq ft (psf) to $3,050 psf. The project has only two-bedders and four-bedders.

Chief executive William Liem said at the project's Dempsey Road showflat yesterday that the four-bedroom units were more popular, "which we didn't expect". Of the 20 units sold, six are two-bedders and the rest are four-bedders. He added he himself had picked up a four-bedder.

R'ST Research director Ong Kah Seng said the project's price point of about $3,000 psf was attractive, given its location and exclusivity. Although smaller units with cheaper total prices may be generally selling faster now, "buyers with strong financing capacity will still prefer quality large units in well-conceptualised projects and localities", he said.

"They understand that in the longer term, it will be easier to extract intrinsic resale value from these units, but this is not quite so for small units in high-end projects or prime projects with too many units."

Cluny Park Residence is designed by SCDA Architects, which is behind other posh freehold projects such as The Marq on Paterson Hill and Botanika at Holland Road. It is expected to be completed in September 2016.

Another small mixed-use project on Balestier Road will also open for preview tomorrow. Ascent @ 456, developed by TA Corp, has 28 residential units. These are all three-bedders ranging from 689 sq ft to 829 sq ft.

Agents said they could be priced from more than $900,000 to around $1.2 million, or more than $1,400 psf.

MELISSA TAN

Despite all the hype in cluny park residences, if you check the ura records today, only 17 units are sold, less than the 20 committments in the article. It is nice to see that the property market has finally cooled down

[whatamidoing]

Tuan Sing's up 7% this morning. Any idea what's with the push? Pretty huge volumes, 10mn shares traded as well

[Louhan]

Possible privatization? Share price is way below net asset value per share.

Tuan Sing's up 7% this morning. Any idea what's with the push? Pretty huge volumes, 10mn shares traded as well

[Curiousparty]

Hi Muser

Could u kindly share the RNAV of Tuan Sing (if u have worked out)?

many tks.

why buy
- selling close to cash. 23cents of cash in balance sheet & stock quoting at 32cents
- stock quoting at 50% of book value
- diversified income from rental property, hotels, and few other biz
- net gearing below 1 (conservative for a property developer??)
- yet to be recognized revenue & profit pipeline from development properties (robinson tower, cluny, sennet etc.)

what can go wrong
- gearing goes up
- asset purchase spree at high prices
- property market slumps. NAV goes down

Catalyst to sell
- rev recognition from development projects in pipeline as they get completed in FY 14 & FY15
- sale of non-core assets (not related to core property biz)
- P/B goes closer to 1
- net gearing goes beyond 1 (now 0.8)
- price goes up 20%

[propertyinvestor]

Hi Muser

Could u kindly share the RNAV of Tuan Sing (if u have worked out)?

many tks.

why buy
- selling close to cash. 23cents of cash in balance sheet & stock quoting at 32cents
- stock quoting at 50% of book value
- diversified income from rental property, hotels, and few other biz
- net gearing below 1 (conservative for a property developer??)
- yet to be recognized revenue & profit pipeline from development properties (robinson tower, cluny, sennet etc.)

what can go wrong
- gearing goes up
- asset purchase spree at high prices
- property market slumps. NAV goes down

Catalyst to sell
- rev recognition from development projects in pipeline as they get completed in FY 14 & FY15
- sale of non-core assets (not related to core property biz)
- P/B goes closer to 1
- net gearing goes beyond 1 (now 0.8)
- price goes up 20%

RNAV is close to 80cents according to NRA Research. But its likely to be much higher than that going forward due to increasing commercial property prices in CBD area.

[Curiousparty]

Tks.

Is there any near term catalyst that will prop up the interest?

Hi Muser

Could u kindly share the RNAV of Tuan Sing (if u have worked out)?

many tks.

why buy
- selling close to cash. 23cents of cash in balance sheet & stock quoting at 32cents
- stock quoting at 50% of book value
- diversified income from rental property, hotels, and few other biz
- net gearing below 1 (conservative for a property developer??)
- yet to be recognized revenue & profit pipeline from development properties (robinson tower, cluny, sennet etc.)

what can go wrong
- gearing goes up
- asset purchase spree at high prices
- property market slumps. NAV goes down

Catalyst to sell
- rev recognition from development projects in pipeline as they get completed in FY 14 & FY15
- sale of non-core assets (not related to core property biz)
- P/B goes closer to 1
- net gearing goes beyond 1 (now 0.8)
- price goes up 20%

RNAV is close to 80cents according to NRA Research. But its likely to be much higher than that going forward due to increasing commercial property prices in CBD area.

[propertyinvestor]

Tks.

Is there any near term catalyst that will prop up the interest?

Hi Muser

Could u kindly share the RNAV of Tuan Sing (if u have worked out)?

many tks.

why buy
- selling close to cash. 23cents of cash in balance sheet & stock quoting at 32cents
- stock quoting at 50% of book value
- diversified income from rental property, hotels, and few other biz
- net gearing below 1 (conservative for a property developer??)
- yet to be recognized revenue & profit pipeline from development properties (robinson tower, cluny, sennet etc.)

what can go wrong
- gearing goes up
- asset purchase spree at high prices
- property market slumps. NAV goes down

Catalyst to sell
- rev recognition from development projects in pipeline as they get completed in FY 14 & FY15
- sale of non-core assets (not related to core property biz)
- P/B goes closer to 1
- net gearing goes beyond 1 (now 0.8)
- price goes up 20%

RNAV is close to 80cents according to NRA Research. But its likely to be much higher than that going forward due to increasing commercial property prices in CBD area.

Tuan Sing is guaranteed to be profitable till 2016 Q1 thanks to profit recognition. Robinson Point can also now be sold at a profit if TS chooses to flip it.

Watch out for Prudential Tower resale prices when it hits the market next quarter.

[Curiousparty]

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?

May I ask how did u arrive at the PSF valuation for retail and office space (i.e. $3500 PSF)? What PSF did u use for the 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.