Wee Hur Holdings

[Xiaosaint]

It seems like Wee Hur is having some trouble obtaining the necessary capital for their PBSAs in Australia.

https://s3-ap-southeast-1.amazonaws.com/...9NRA.3.pdf


Sent from my iPhone using Tapatalk

[Xiaosaint]

It seems like Wee Hur has gave up on developing a second PBSA in Brisbane and decided to sell the whole plot of land between Ann Street and Turbot street instead. Perhaps due to their inability in securing the necessary funds to develop so many PBSAs at one go?

https://s3-ap-southeast-1.amazonaws.com/...M806.1.pdf


Sent from my iPhone using Tapatalk

[Jack31]

Went for the agm. Summary.
1) selling whole plot is due to suncorp indicating they will only lease from mirvec if they secure the full plot. If unable to secure lease from suncorp, the deal is off. Ball is not in management court currently. the land is Not generating any income, if kena play out by the buyer, really big waste of resources. (Iirc, they suppose to have start building the pbsa on one of the lot)
2) management not keen on share buyback currently, indicate it does not grow the company.
3) advise shareholder to be patient, investment will bear fruits.
4) many might not have note that tuas view dormitory lease expiring soon.
5) hard to bid for land as many developer biding crazily, management prefer prudence-which I like
6) parc botannia likely to be sold out by top. (52% on agm date)

The rest are more or less in the annual report.

[Jack31]

To add on for knowledge, I'm surprise by this too.
Residential Property investment in australia are relatively safe (to an extent)
Developer are not allow to proceed with construction until certaint % of unit are sold. - bank might not lend the $.
And land cost are only about 10% of total cost. (Thus, if property don't sell, you are just stuck with 10% cost- the land asset is still yours)

[Jack31]

50/50 chance suncorp deal will go thru
2 contender left, Mirvac being one of them.
https://www.pressreader.com/australia/th...4428871323

[cyclone]

Wee Hur PBSA Master Trust Signs Put and Call Option Agreement on Proposed Acquisition of A Property for A$52 Million

Highlights :
1. Proposed acquisition property is a freehold residential block with a site area of approximately 1,365 sq m located at 13-23 Gibbons Street, 150 m from Redfern Railway Station
2. Group intends to redevelop property to be a purpose-built student accommodation ("PBSA") with more than 500 beds
3. Site is 10 minutes and 20 minutes walk from University of Sydney and University of Technology Sydney respectively
4. If proposed acquisition is successful and PBSA redevelopment plan is approved, the total number of PBSA beds under the Wee Hur PBSA Master Trust can reach approximately 3,765.

More details in :
1. http://infopub.sgx.com/FileOpen/WH%20Ann...eID=508667
2. http://infopub.sgx.com/FileOpen/WH%20Pre...eID=508668

[Jack31]

Updates:

1) brisbane pbsa seems to be doing better than expected. Management had said during agm that they expect occupancy rate to slowly grow (e.g 30-40% in 2018, 50-70% in 2019 and so on). Currently 2 categories of room sold out, 2 selling fast.
https://unilodge.com.au/book-now-room-type/?pid=8519
2) suncorp has choosen mirvac for new tower. Should be no problem selling the brisbane property.

Downside
1) workers dorm lease expiry soon.
2) depreciation of AUD
3) company seems to have problem securing construction contract as they focus more on margin. (Although management say should see improvement in 2019)

[Xiaosaint]

A sudden tightening of the property market with cooling measures including:

- 5% increase in the ABSD for individuals (for 2nd home and onwards)
- 10% increase in ABSD for entities
- additional 5% for developers on top of the revised ABSD for entities
- tightening loan-to-value (LTV) limits on residential property purchases by 5 percentage points

https://www.channelnewsasia.com/news/bus...t-10502710

This is going to affect the demand for residential units. I believe this is going to gravely affect many property developers' top line. Will Wee Hur be able to weather the storm ahead?

[BlueKelah]

A sudden tightening of the property market with cooling measures including:

- 5% increase in the ABSD for individuals (for 2nd home and onwards)
- 10% increase in ABSD for entities
- additional 5% for developers on top of the revised ABSD for entities
- tightening loan-to-value (LTV) limits on residential property purchases by 5 percentage points

https://www.channelnewsasia.com/news/bus...t-10502710

This is going to affect the demand for residential units. I believe this is going to gravely affect many property developers' top line. Will Wee Hur be able to weather the storm ahead?

Should be no problem la, besides at the most property market drop a bit and flat for a while. Developers won't make that much losses, the worst they just break-even. Eventually supply will dry up and the cycle continues

[cyclone]

Award of a New Project from the Housing & Development Board

Wee Hur Holdings Ltd. announced that its wholly-owned subsidiary, Wee Hur Construction Pte Ltd, has secured a new project worth S$30,600,000.00 from the Housing & Development Board.

The scope of the Project covers the design and build of upgrading projects and contingency works at Hougang Avenue 3, Hougang Avenue 6, Hougang Avenue 7, Bedok Reservoir Road and Hougang Street 11/21.

The Project will commence in April 2019 and is expected to complete by fourth quarter 2020.