Frasers Property (formerly: Frasers Cpt (FCL))

[piggo]

Piggo San, IMO, 5% for perpetuals is actually very cheap for corporates. My investment fund manager friend told me in the past benchmark perpetuals yields are usually 9-10%.

Charoen really big appetite, he took up so much himself... $300M!!!

Agreed.

Just that off-hand it seems expensive because it's higher than previous issues... but after averaging out, it's still very cheap.

[greengiraffe]

Strong demand sees yields tighten
Industrial Larry Schlesinger
350 words
3 Mar 2015
The Australian Financial Review
AFNR
English
Copyright 2015. Fairfax Media Management Pty Limited.

Analysts are forecasting forecast further cap rate compression for industrial property, driven by continued strong appetite for new logistics facilities, particularly in Melbourne and Sydney.

Australia's biggest listed developer and owner of industrial assets, the $11 billion Goodman Group, reported that yields across its global portfolio tightened by an average 20 basis points to 7.3 per cent, off the back of higher valuations over the December half-year. At the same time, yields (on cost) across its $2.9 billion development pipeline rose 40 basis points to 8.7 per cent.

"The outlook for Goodman Group remains very healthy in the near term," said JPMorgan analysts Richard Jones and Scott Molloy. "Goodman has been expanding its operations in markets where speculative development is more prevalent ... development margins should remain strong, with further cap rate compression possible in the second half of the year."

Goodman chief executive Greg Goodman said the group was benefiting from investor demand for high-quality industrial assets, while also being able to take advantage of "strong pricing" to sell out of assets with residential development potential.

The Charter Hall Group, which grew its industrial property under management by $400 million over the December half-year to $2.5 billion, reported cap rate compression of 26 basis points from 7.88 per cent to 7.62, with an occupancy rate of 99.7 per cent.

Credit Suisse analyst John Richmond said in a note on Charter Hall Group: "Australian bonds have rallied from 4.2 per cent to 2.5 per cent in the past 12 months, supporting the case for further cap rate compression ... the property risk premium now sits 100 basis points above for industrial.".

The GPT Group, which owns a portfolio of logistics assets, reported that cap rate compression was driven by investment demand, but also noted "patchy leasing demand".

Among the small cap industrial stocks, the Australian Industrial REIT reported yields tightening 35 basis points to 8.1 per cent as it rejected a takeover bid by the 360 Capital Industrial Fund.


Fairfax Media Management Pty Limited

Document AFNR000020150302eb330002j

[greengiraffe]

http://infopub.sgx.com/FileOpen/Press_Re...eID=338117

http://www.theedgemarkets.com/sg/article...point-city

North Park Residences to have direct access to Frasers Centrepoint’s Northpoint City
By Amy Tan / theedgemarkets.com | March 10, 2015 : 8:22 PM MYT

SINGAPORE (Mar 10): Built within Northpoint City, North Park Residences comprises 920 units in twelve 10-storey towers on an area covering more than 322,920 sq ft, said Frasers Centrepoint Limited (FCL) in a filing today.

When completed in 2018, FCL’s Northpoint City will be the largest integrated development in the Northern part of Singapore.

FCL will integrate the existing Northpoint Shopping Centre with the new development which has a total gross floor area of about 1.33 million sq ft in Yishun Central.

The integrated development will house a transport hub, Yishun Public Library, Nee Soon Central Community Centre, a childcare centre, a Town Plaza the size of 10 basketball courts and over 500 retail and F&B outlets.

The project is also within close proximity to the medical hub of the North, which comprises the Khoo Teck Puat Hospital and community healthcare facilities such as the Yishun Community Hospital and Yishun Polyclinic.

Cheang Kok Khrong, FCL’s CEO of development and property, observes that occupants at North Park Residences will not only enjoy the condominium’s amenities but will also enjoy the facilities at Northpoint City.

“This will significantly raise the live-ability quotient in Yishun and the desirability factor for North Park Residences,” he says.

North Park Residences will offer one- to five-bedroom apartment options for singles, couples and three-generation families with floor areas ranging from 431 sq ft to 1,432 sq ft.

Property analysts expect keen interest and demand for North Park Residences given its locale and amenities.

Donald Han, managing director of Chestertons Singapore points out that integrated developments have typically done well in Singapore’s property market. “But there are not too many options available and therefore we can expect to see keen receptiveness when a new one is released into the market,” he says.

FCL shares closed 0.85% lower at $1.755 today.

[piggo]

TodayOnline: Frasers’ S$1.43b top bid for Yishun site stuns market

estimated the break-even at just below S$1,500 psf, saying the developers would have to sell at S$1,600 to S$1,800 psf to account for profit.

Mr Ku said the synergy and the enhanced value to the commercial elements of the project will allow the developer to price the residential component at about S$1,300 psf.

BusinessTimes: Frasers to Start Selling Condos in Yishun Project at end-March

there is an estimated 30 per cent price premium associated with such integrated projects with a retail component and seamless underground access to a transport hub given that its construction costs are about 30 per cent higher than a pure play residential project.

But the higher costs will eventually trickle down to higher yields and capital appreciation, which is why buyers are willing to fork out that premium.

A quick check, nearby (1.3km) pure residential play Symphony Suites is around 1,000 psf, while retail/residential Nine Residences (950m) away is priced around 1,200 psf.

[CityFarmer]

Indicative price from agents, was around $1300 psf. May be those agents are all from ERA...

TodayOnline: Frasers’ S$1.43b top bid for Yishun site stuns market

estimated the break-even at just below S$1,500 psf, saying the developers would have to sell at S$1,600 to S$1,800 psf to account for profit.

Mr Ku said the synergy and the enhanced value to the commercial elements of the project will allow the developer to price the residential component at about S$1,300 psf.

BusinessTimes: Frasers to Start Selling Condos in Yishun Project at end-March

there is an estimated 30 per cent price premium associated with such integrated projects with a retail component and seamless underground access to a transport hub given that its construction costs are about 30 per cent higher than a pure play residential project.

But the higher costs will eventually trickle down to higher yields and capital appreciation, which is why buyers are willing to fork out that premium.

A quick check, nearby (1.3km) pure residential play Symphony Suites is around 1,000 psf, while retail/residential Nine Residences (950m) away is priced around 1,200 psf.

[piggo]

Indicative price from agents, was around $1300 psf. May be those agents are all from ERA...

Construction costs is around there... Guess FCL really isn't going for much profits at around $1,300, maybe smaller units will have better margins.

Profits from Australia property's a lot more exciting

[piggo]

[Image: wuuSy44.png]

Assuming total cost of $1,300 (personally think it's more) it's less than $0.01/share in profits.

Looks like a good bargain! Really lelong lelong.

5BR, 3BR Universal, 4BR, 3BR Trio and are being sold from around 1.29 to 1.3k psf... Tempting!

[greengiraffe]

[Image: wuuSy44.png]

Assuming total cost of $1,300 (personally think it's more) it's less than $0.01/share in profits.

Looks like a good bargain! Really lelong lelong.

5BR, 3BR Universal, 4BR, 3BR Trio and are being sold from around 1.29 to 1.3k psf... Tempting!

Given that this is a mixed development project - we don't know what is the cost of land allocated to retail space which is typically much higher than residential... hence all the estimates may yet be futile.

Having said that, the price they paid could well be too high considering the premium they paid to secure the site over the 2nd highest bid...

Vested
GG

[piggo]

Given that this is a mixed development project - we don't know what is the cost of land allocated to retail space which is typically much higher than residential... hence all the estimates may yet be futile.

Not sure how they value the synergies between this development and the mall. Regardless, it's certain that they've overpaid for the residential land (some form of national service?) even if they can derive good value from it due to the retail/commercial (e.g vivocity/Harbor front centre style with higher population density) they'll only see benefits from 2020. Kinda explains the drop in share price right after the real estate agent briefing...

Anyway as with everything that's value for money in sg, you'll probably need to fight to buy a nice unit in this development... Haha...

[AQ.]

Quite an interesting piece in FinanceAsia recently, showing "Asian Tycoon's Top Bankers" - essentially how much each investment bank earned from fees financing the various tycoons.

In particular, DBS (43mio) and UOB (28mio) are the top guys for TCC with DBS financing their purchase of Intercontinental while both financed the F&N acquisition. Deutsche earned 21mio, for the FCL acquisition of Australand - more interestingly, Chotipat Bijananda (son-in-law of Charoen) was previously the head of investment banking for DB in Thailand.

Stand Chart is 4th with 20mio.