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http://www.valuebuddies.com/thread-1342-...#pid114700
FCL sold 357 Collin St Melbourne to FComm for 6.3% net prop income yield. If this is the cap rate on the asset sold and FCL made little $ from the sale, it would have appeared that FCL paid top $ last year for ALZ.
Given that cap rates on investment properties or those that generates recurrent income is relatively stable, FCL's top $ paid for ALZ must be extracted from the non investment prop div, ie the landbank that ALZ is sitting on.
Given that development Down Under is a long cumbersome process and take years sometimes up to a decade to fully develop a project, FCL's top $ paid for ALZ must have been focussed on the potential of the landbank.
So far with the progressive updates from the Australian unit, it appears to be inline with my speculation and hence Towkay will be eventually credited for his risk taking and foresight. Slowly but certainly, we can see that analysts are slowly warming up to FCL and that will eventually enable Towkay to dilute his tight holdings, improve trading liquidity in FCL and slowly narrowed FCL discount to RNAV.
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Guru GG:
In the EGM acquisition on Australand, I believe I saw yields of 7-9% on Australand's industrial properties.
If my eyes is correct, that means there is some gain on the sale.
And for the recent hotel sale to the REIT, the tenure if FH. The sale to REIT is for 75 yr lease.
(16-06-2015, 10:28 PM)greengiraffe Wrote: http://www.valuebuddies.com/thread-1342-...#pid114700
FCL sold 357 Collin St Melbourne to FComm for 6.3% net prop income yield. If this is the cap rate on the asset sold and FCL made little $ from the sale, it would have appeared that FCL paid top $ last year for ALZ.
Given that cap rates on investment properties or those that generates recurrent income is relatively stable, FCL's top $ paid for ALZ must be extracted from the non investment prop div, ie the landbank that ALZ is sitting on.
Given that development Down Under is a long cumbersome process and take years sometimes up to a decade to fully develop a project, FCL's top $ paid for ALZ must have been focussed on the potential of the landbank.
So far with the progressive updates from the Australian unit, it appears to be inline with my speculation and hence Towkay will be eventually credited for his risk taking and foresight. Slowly but certainly, we can see that analysts are slowly warming up to FCL and that will eventually enable Towkay to dilute his tight holdings, improve trading liquidity in FCL and slowly narrowed FCL discount to RNAV.
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Hi Buddy,
Ind REIT cap rates are still around those levels. If FCL can shift it to REITs (existing or new ones) at the lower end of 7% will be acheivement.
FCL are going down to usual route seen like the hotel example you have highlighted.
In any event, I strongly believe that FCL's strategy is unfolding and become clearer over time to enable improvements in fundamentals and liquidity.
Towkay has covered all angles from pipeline to financing. Still water runs deep.
Cheers
GG
(17-06-2015, 04:16 PM)Contrarian Wrote: Guru GG:
In the EGM acquisition on Australand, I believe I saw yields of 7-9% on Australand's industrial properties.
If my eyes is correct, that means there is some gain on the sale.
And for the recent hotel sale to the REIT, the tenure if FH. The sale to REIT is for 75 yr lease.
(16-06-2015, 10:28 PM)greengiraffe Wrote: http://www.valuebuddies.com/thread-1342-...#pid114700
FCL sold 357 Collin St Melbourne to FComm for 6.3% net prop income yield. If this is the cap rate on the asset sold and FCL made little $ from the sale, it would have appeared that FCL paid top $ last year for ALZ.
Given that cap rates on investment properties or those that generates recurrent income is relatively stable, FCL's top $ paid for ALZ must be extracted from the non investment prop div, ie the landbank that ALZ is sitting on.
Given that development Down Under is a long cumbersome process and take years sometimes up to a decade to fully develop a project, FCL's top $ paid for ALZ must have been focussed on the potential of the landbank.
So far with the progressive updates from the Australian unit, it appears to be inline with my speculation and hence Towkay will be eventually credited for his risk taking and foresight. Slowly but certainly, we can see that analysts are slowly warming up to FCL and that will eventually enable Towkay to dilute his tight holdings, improve trading liquidity in FCL and slowly narrowed FCL discount to RNAV.
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FCL acquisition of MHDV. Direct competition with Ascott.
Why do I get the feeling that the SG government has given FCL an implicit green light to compete with Capitaland in return for F&N takeover? The business focus is exactly head on (except China where Capitaland is much deeper in. FCL focus on AU instead.)
http://infopub.sgx.com/Apps?A=COW_CorpAn...5b32981c41
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U are reading too much...
Capland has stripped till very little assets in the pipeline except exposures in China and Ascott. In terms of pipeline assets, I don't seem to get the feeling that Capland is actively building (biased here).
Temasek has every chance to stake a claim in home grown name. However, they chose to cash out and hence quite obvious that they don't see how F&N can fit into their risk/return profile.
In fact, even more interesting is how Capland catapulted ALZ only to see substantially higher value emerged with FCL as a suitor. Obviously, ALZ is also not within T-Link co focus.
Anyway, to each its own. Like I always say, I rather entrust my money with businessmen rather than professional manager that has no or little stakes in a company since they can always come and go.
The acquisition is another biggy for FCL and Towkay's appetite for big bites are quite evident... he is on a mission and he still owns 88.2% of both F&N and FCL. It is quite obvious that any strategic moves will be to his benefit as noone with such stakes will shoot themselves in their own foot.
FCL continues to yield attractively at 4.77% trades at substantial discount to RNAV and has healthy pipeline for a complete suite of a property conglomerate. The market will slowly warm up and pay a fair price for Towkay to dilute his interests eventually.
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(17-06-2015, 07:13 PM)thor666 Wrote: FCL acquisition of MHDV. Direct competition with Ascott.
Why do I get the feeling that the SG government has given FCL an implicit green light to compete with Capitaland in return for F&N takeover? The business focus is exactly head on (except China where Capitaland is much deeper in. FCL focus on AU instead.)
http://infopub.sgx.com/Apps?A=COW_CorpAn...5b32981c41
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GG bro, I don't mean temasek to stake a claim in showcasing a brand. My feel is that contrary to popular opinion, the government does try to invite competition when possible. See Ida 4th telco and bus transport package. F&n was not looking to unlock value aggressively in its property arm before chaoren took over. My Rationale is that competition will bring down costs down and ultimately assets are used more efficiently. Anyway.. Am digressing without evidence and just hocus pocus opinion.
For Ascott REIT, they have been given target of 6bil portfolio in 2017. Mandate from capland. Acquisitions from ascott REIT is not about if but when. I'm already gearing up for rights issue.
In any case, I am happy to be proven wrong either way
Vested in both fcl and ascott REIT 
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http://www.valuebuddies.com/thread-4912-...#pid114802
Explains why an established platform is crucial for a sustainable development model Down Under...
IMHO, Capland being so established is stupid to have sold ALZ for a song when it is so hard to get a working foothold Down Under...
It has been quite a while since CDL is talking about entering Australia via the rumoured purchase of Leighton Prop... even then its merely talks till now.
To be able to take a development off ground means more than grand concepts...
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One buy after another. FCL appetite to buy is really huge.
I like their vision. However, I wonder how they manage the debt management.
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They have already exhausted their expanded MTN program and retail bon investors happily snapped up the balance S$500m @ 3.65%, they have been recycling matured assets into their REIT platform to free up capital, they are looking at possibility of listing a new REIT and they are also progressively collecting their progressive payments...
Basically, they have clear idea what they are up to... I seriously don't see a problem
(17-06-2015, 11:49 PM)Contrarian Wrote: One buy after another. FCL appetite to buy is really huge.
I like their vision. However, I wonder how they manage the debt management.
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First Fairwater homes sell within minutes
253 words
17 Jun 2015
Blacktown Advocate
BLACAD
English
© 2015 News Limited. All rights reserved.
INTEREST in Blacktown’s Fairwater Estate is only set to increase after the official launch last week of the master-planned community.
The estate launch couldn’t come sooner with demand for housing in Blacktown at an all time high.
The first three home releases on the former Ashlar Golf Course site sold out in minutes, with developer Australand receiving more than 7000 expressions of interest.
An extra 40 homes will come to market today.
Blacktown Deputy Mayor Russ Dickens said meeting the demand for homes near the Blacktown CBD was one of the council’s biggest planning challenges.
“More and more people are making the move to Blacktown,” Cr Dickens said. “We have to ensure the homes, infrastructure and amenities are available for those who want to call our city home.
“While there was a lot of controversy around the closure of the golf course, the need for housing in the region was too much to ignore.” NSW Minister for Planning Rob Stokes was on hand for the launch and said communities such as Fairwater were an indication of what homebuyers were looking for.
“Smaller lot sizes are becoming the norm and the challenge has been how to maximise space yet maintain the level of livability,” Mr Stokes said.
“Another major factor is affordability, and building on the smaller lots ensures these homes are affordable.”Fairwater’s display homes also opened their doors last week. When completed, the estate will have more than 800 homes.
News Ltd.
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