Wheelock Properties

[Scg8866t]

http://infopub.sgx.com/FileOpen/WPSL_ANN...eID=436527

So wheelock say they have no idea for the reason of the surge in price. Either their parent is only doing some initial planning and has not communicated with wheelock directly or it could just be a fluke from the 30% HK macro news.

Either way i dont mind it to tank or surge tmrw. Will stay strict on accumulation only for now at the appropriate level. My view.

[soros]

Control of Wheelock Marden (the HK listed Company ) was acquired by Sir Y K Pao, the HK Shipping Magnate back in 1985 and for many years "Wheelock" has been under the control of his son-in -law Peter Woo. Since Wheelock Properties ltd ( the Singapore listed subsidiary ) has been under control of Peter Woo for past 31 years and you can expect the dividend payout to remain conservative and unlikely to be generous.

[Scg8866t]

Control of  Wheelock Marden (the HK listed  Company ) was acquired by Sir Y K Pao, the HK Shipping Magnate back  in 1985   and for many years "Wheelock" has been under the control of his son-in -law Peter Woo.    Since  Wheelock Properties ltd ( the Singapore listed  subsidiary ) has been under control of Peter Woo for past 31 years and you can expect the dividend payout to remain conservative and unlikely to be generous.

Conservative is relative. Wheelock currently has 31cts per share of cash on hand. Giving out 6cts every year consistently even during the 2009 financial crisis in todays term is closed to 4%. In my view, with such a fortress of a balance sheet that they have and with 76% of their shares owned by the parent, I dont mind treating this as a 4% bond while waiting for them to be privatized.

There are a few clues as to why i think wheelock will ultimately be privatize by its parent in HK. Firstly, they do not have a ceo for quite some time after David died. Means they do not want someone to give directions for wheelock sg. Secondly, they have no more land bank in sg. Thirdly, with such a potential accumulation of cash in their coffeurs and with no new ventures going forward, it makes for an approriate target for its parent to buyout and focus more on their china/hk ventures. My view.

That being said, i might be wrong, but the 4% yield makes it more bearable for the wait.

[basantd]

http://infopub.sgx.com/FileOpen/WPSL_ANN...eID=436527

So wheelock say they have no idea for the reason of the surge in price. Either their parent is only doing some initial planning and has not communicated with wheelock directly or it could just be a fluke from the 30% HK macro news.

Either way i dont mind it to tank or surge tmrw. Will stay strict on accumulation only for now at the appropriate level. My view.

[tealeaves]

Control of  Wheelock Marden (the HK listed  Company ) was acquired by Sir Y K Pao, the HK Shipping Magnate back  in 1985   and for many years "Wheelock" has been under the control of his son-in -law Peter Woo.    Since  Wheelock Properties ltd ( the Singapore listed  subsidiary ) has been under control of Peter Woo for past 31 years and you can expect the dividend payout to remain conservative and unlikely to be generous.

Conservative is relative. Wheelock currently has 31cts per share of cash on hand. Giving out 6cts every year consistently even during the 2009 financial crisis in todays term is closed to 4%. In my view, with such a fortress of a balance sheet that they have and with 76% of their shares owned by the parent, I dont mind treating this as a 4% bond while waiting for them to be privatized.

There are a few clues as to why i think wheelock will ultimately be privatize by its parent in HK. Firstly, they do not have a ceo for quite some time after David died. Means they do not want someone to give directions for wheelock sg. Secondly, they have no more land bank in sg. Thirdly, with such a potential accumulation of cash in their coffeurs and with no new ventures going forward, it makes for an approriate target for its parent to buyout and focus more on their china/hk ventures. My view.

That being said, i might be wrong, but the 4% yield makes it more bearable for the wait.

good wan 8866
another tidbit is that Wheelock might haf to incur QC payments that they are due for Ardmore 3.
They can of course do a Capland, and sell to Wee or whoever willing to buy.
minor cost involved versus paying the QC charges for any unsold units, after 2 years upon completion.

anyway, WHeelock is flushed with cash, the issue now is how they elect to deploy it the warchest.
Appears after the loss of David Lawrence, they haf really yet to find a man with strong foresight and a midas touch.
so another angle to consider. For info guys. : P

[Boon]

Control of  Wheelock Marden (the HK listed  Company ) was acquired by Sir Y K Pao, the HK Shipping Magnate back  in 1985   and for many years "Wheelock" has been under the control of his son-in -law Peter Woo.    Since  Wheelock Properties ltd ( the Singapore listed  subsidiary ) has been under control of Peter Woo for past 31 years and you can expect the dividend payout to remain conservative and unlikely to be generous.

Conservative is relative. Wheelock currently has 31cts per share of cash on hand. Giving out 6cts every year consistently even during the 2009 financial crisis in todays term is closed to 4%. In my view, with such a fortress of a balance sheet that they have and with 76% of their shares owned by the parent, I dont mind treating this as a 4% bond while waiting for them to be privatized.

There are a few clues as to why i think wheelock will ultimately be privatize by its parent in HK. Firstly, they do not have a ceo for quite some time after David died. Means they do not want someone to give directions for wheelock sg. Secondly, they have no more land bank in sg. Thirdly, with such a potential accumulation of cash in their coffeurs and with no new ventures going forward, it makes for an approriate target for its parent to buyout and focus more on their china/hk ventures. My view.

That being said, i might be wrong, but the 4% yield makes it more bearable for the wait.

True, treating it like a bond (if one is happy with the yield) while waiting for it to be taken private by its Parent may not sound too bad for some.
 
But what is the probability of WP being taken private happening?
 
It is of anybody’s guess  - but for argument sake, here are my counters
 
Arguments FOR Privatization: 
1) No CEO
2) No more land bank
3) Potential built up of cash + no new ventures => cash could be deployed to privatize company and concentrate on China/HK ventures
 
Arguments AGAINST privatization including counters arguments to the above:
1) Operating without a CEO seems like a norm now. From AR2015: “The Company does not have a separate chief executive officer. Although it is a deviation from the Code which provides that there should be a clear division of responsibilities between the leadership of the Board and the executives responsible for managing the company’s business, the Board considers the current leadership structure to be efficient taking into account, inter alia, the current needs of the Company. The Board notes that the Chairman plays an instrumental role in developing the business of the Group and provides the Group with strong leadership and vision. It is satisfied that he is able to effectively discharge the duties of both positions. Additionally, there is a balance of power and authority given the composition of the Board which comprises experienced individuals of high-calibre with more than half of the Board comprising independent non- executive Directors.” Or who knows there could be a new CEO emerged eventually.
2) No more land bank – have money can buy more
3) True – cash could be deployed to privatize the company – but it could also be deployed to buy more land; buy or build more investment properties for recurring rental income; buy more investments (both equity securities and debt securities); or return back to shareholders; or to invest in other profitable ventures.
4) Besides, what makes you think China/HK are the only markets they want to concentrate on? From diversification perspective, it makes more sense to keep its Singapore operations.
5) HK’s future (including its status as a world financial center) under China remains uncertain, IMO – it makes sense to keep its listing platform in Singapore “alive” and handy.
6) A billion SGD of cash may sound a lot to many smaller market cap companies – but probably not to WP if they were to buy more lands again – bear in mind that Panorama site (bought in 2013) and Fuyang site (bought in 2011/2012) cost them SGD 550 m and SGD 280 m respectively – not a lot left if there were to repeat “similar buys”.
7) Without deploying the billion SGD cash hoard to generate more income, the ability to sustain 6.0 cents DPS payout is questionable, I reckon.
 
That said – I could also be completely wrong in the games of future prediction.
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[SLC81]

Property listed companies look like having its day finally after many years.  Wheelock may retest  2015 high of $1.95.

[namralk]

Fuyang Project (Phase 1) Revenue estimate :
 
For the Fuyang project (雍景山) in the People’s Republic of China (“PRC”), revenue from sale of the development property will be recognised upon the transfer of significant risks and rewards of ownership of the property to the purchasers. 

http://www.wtoutiao.com/p/5098uYH.html
 
http://chuansong.me/n/380601251480
 
According to the above links:
 
Phase 1 of Fuyang project is about 100,000 sqm - it had been completed and handed over to buyers in 4Q2016.
 
Estimated revenue to be recognized in 4Q2016:

= (Average sales price =  RMB 9,546 per sqm) x 100,000 sqm / (Exchange rate of 4.8) = about SGD 200 million
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Overall, would revenue to be recognised from Panorama (~ 335 m) + Fuyang project phase 1(~ 200m ) + Ardmore Three (???) +  Scotts Square (???) exceed 600 m by end of FY2017 ?

I would say close !

Question remains: If cash level reaches a billion, so what? Would DPS be increased? 
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天了噜，去年富阳楼市成交额竟然有近200亿元！
http://chuansong.me/n/1484953252023

雍景山 is at 银湖板块, whose property price increased by 20% in 2016.

"从单盘情况来看，绝大部分楼盘的价格还是略有上涨的，银湖片区的楼盘最为典型。野风山和雍景山均有20%左右的涨幅，富阳主城区的楼盘的涨幅则并不明显，山水国际和百合新城的涨幅均在5%以内"

30 Sept 2015 : 95 units of 191 units launched sold at asp of RMB9,300psm
30 Sept 2016 : 610 units of 634 units launched sold at asp of RMB9,546psm
According to above article, 雍景山 asp for 2016 is RMB10,235.

The possible background for the increased prices in Q42016 could be that in Nov 2016 HangZhou govt announced some property measures to cool the hot property market.



杭州楼市调控二次加码说明什么？
http://cj.sina.com.cn/article/detail/140...0&rfunc=26

富阳 (where 雍景山's 银湖板块 is in) is out of the property curb measure. Dubbed “第九区”. They seemed to have benefited from the curbs in Hangzhou main market as some hot money flowed there instead.

杭州拥有限购豁免权的“第九区”，竟然悄悄开始逆袭？
http://www.kan3721.com/news/show-6728.html

[Scg8866t]

http://www.straitstimes.com/business/com...ith-eye-on

Wheelock was mentioned in this article on potential takeover again.

[SLC81]

Wheelock has gone ballistic nonstop in the last few days. Perhaps, the market knew something.

Is there an offer being working out for Wheelock minority share holders and what would be a fair deal ? Minimum $ 2.60 ? I think should be more than that. In 2010 when Wheelock privatized Wheelock properties (Hong Kong) and the offer was really good at HK$13.45 apiece, a premium of approximately 143.90% over the last closing price, which was HK$5.33.