Frasers Property (formerly: Frasers Cpt (FCL))

[felixleong]

http://www.bloomberg.com/news/2014-01-09...mover.html

Frasers Centrepoint Ltd. (FCL) began trading in Singapore after Fraser & Neave Ltd., controlled by Thailand’s richest man, spun off the property business from operations including beverages and publishing.

The shares opened at S$1.61. F&N, as the 131-year-old conglomerate is known, said in August it will offer two shares of its Frasers Centrepoint for every stock held.

F&N is carving off the real estate division, allowing each unit to focus on individual expansion strategies, after Thai billionaire Charoen Sirivadhanabhakdi bought F&N last year through his companies, including Thai Beverage and TCC Assets Ltd., for S$13.8 billion ($11 billion).

Frasers Centrepoint is considering plans for a hospitality trust, according to a company statement in August. It has a S$2.4 billion pipeline of commercial and retail properties as well as S$1.65 billion worth of hospitality assets that could be injected into its property trusts, Lim Ee Seng, chief executive officer of Frasers Centrepoint, said at a briefing then.

Charoen has a net worth of $9.7 billion, according to the Bloomberg Billionaires Index.

[toiletsiao]

Currently trading at $1.52, looks pretty cheap.

If can get at 1.40 would be like 0.75 PB, a very decent margin of safety for such quality assets


any view?

based on the latest NAV of 2.12 .. @ 1.52 it is currently about 29% discount to book..I am looking to add on too

There will be an overhang on FCL shares notably
1) People selling away their Free shares
2) ThaiBev's strategic review on their own 28.4% FCL stake .. not sure will they do a Swap with TCC assets for their FNN stake or place it out to receive cash...

but theres also catalyst in the near term ..
1) FCL's Hospitality REIT listing...that should give the NAV another boost..
2) Robinsons departmental store is moving out of centrepoint ard 2 mths time...i think Centrepoint will be redeveloped together with starhub centre behind it...off course this is my personal speculation la..

[felixleong]

the NAV really 2.12?
I checked with my broker just now, he told me the NAV is 1.89
anyone can help double confirm? thanks man

[toiletsiao]

The latest NAV of FCL is 2.12

Please see attached the Company’s full year results for the financial year ended 30 September 2013 (the “FY2013 Results”), which was previously announced by Fraser and Neave, Limited (“F&NL”) on 12 November 2013.

In respect of paragraph 7 of the FY2013 Results, the Company wishes to note that on 25 October 2013, the Company issued, and F&NL subscribed for 330,000,000 new ordinary shares, and the Company redeemed all the redeemable preference shares held by F&NL in the Company; on 23 December 2013, the Company issued and F&NL subscribed for an additional 1,806,520,790 new ordinary shares for $670 million (together with the subscription on 25 October 2013, the "Capitalisation").

As disclosed in the FY2013 Results, the net asset value per ordinary share for the Group as at 30 September 2013 was $6.80. Purely for illustration purposes, based on the issued ordinary share capital of the Company of 2,889,812,572 following the completion of the Capitalisation, the net asset value per ordinary share for the Group would have been $2.12.

the NAV really 2.12?
I checked with my broker just now, he told me the NAV is 1.89
anyone can help double confirm? thanks man

yes 2.12 .....

[felixleong]

Ok thanks a lot man, I think 1.89 is the one
the earlier post from ngcheeki also says that NAV is 2.12
seems really cheap now

Although the debt/equity is over 60% i think once they spin out the hospitality reit
they should be able to move some debt off their books
like how sph did with sph reit to reduce the parent's gearing

btw thanks for the info guys, i really appreciate it

[freedom]

ThaiBev can't place out its shares to anyone other than within TCC if I remember it correctly. There is lock period of 2 years for both ThaiBev and TCC regarding their shares in FCL.

[toiletsiao]

ThaiBev can't place out its shares to anyone other than within TCC if I remember it correctly. There is lock period for both ThaiBev and TCC regarding their shares in FCL.

technically i think they still can place it out if the Sole Issue Manager approves (DBS) .. after 6mths they can sell without seeking approval of Sole Issue Manager..

from the Moratorium on pg 63 of the introductory document

Each of InterBev Investment Limited and TCC Assets Limited, who will hold directly an aggregate of approximately 88.0 per cent of our Company’s post-listing share capital, has undertaken to the Sole Issue
Manager and our Company not to, without the prior consent of the Sole Issue Manager (such consent not to be unreasonably withheld or delayed), inter alia, offer, sell, contract to sell, grant any option or contract to purchase, grant any security over or otherwise dispose of, directly or indirectly, any of its shareholding in our Company for a period of six months commencing from the date of admission of our Company
to the Official List of the SGX-ST (the “Lock-up Period”).

[CityFarmer]

Ok thanks a lot man, I think 1.89 is the one
the earlier post from ngcheeki also says that NAV is 2.12
seems really cheap now

Although the debt/equity is over 60% i think once they spin out the hospitality reit
they should be able to move some debt off their books
like how sph did with sph reit to reduce the parent's gearing

btw thanks for the info guys, i really appreciate it

The NAV of $1.89, stated in the Sept 13 FR, was base on maximum of issued share. The capitalisation of FCL was done later, and the final NAV should be $2.12, as posted previously.

So your broker is right, but out-dated.

[felixleong]

Thanks all for the info, you guys have been very helpful and i appreciate it. Currently the market is valuing it at only 0.7x book value. Seems like quite a good entry price with a comfortable margin of safety. I think the big discount to book value may only be short term as investors who got the free shares from their fnn rush to cash out, mid term we should logically see fcl trade towards 0.8x or better.

[CityFarmer]

Thanks all for the info, you guys have been very helpful and i appreciate it. Currently the market is valuing it at only 0.7x book value. Seems like quite a good entry price with a comfortable margin of safety. I think the big discount to book value may only be short term as investors who got the free shares from their fnn rush to cash out, mid term we should logically see fcl trade towards 0.8x or better.

IMO, the valuation of Mr. Market might be based on RNAV. Base on estimated RNAV of $2.22. A 30% discount is $1.55 and 35% discount is $1.44, so the market price of $1.50 is between 30-35% discount to RNAV.

I agreed it is a good price to accumulate, so I picked up more in the morning.

(vested)