Boustead Singapore

[valuestalker]

Is this considered as design & build project?
I am wondering whether Boustead has to acquire and pay for the land (site) cost in d&b project?

[Musicwhiz]

Is this considered as design & build project?
I am wondering whether Boustead has to acquire and pay for the land (site) cost in d&b project?

I suspect this 61 Ubi Avenue 1 is one of the pieces of land which Boustead currently owns (have to check though, from AR to be released soon).

But for other D&B projects, nope I don't think they pay for the land at all. They simply design and build the building which sits on the land, so their costs are confined to the property.

[freedom]

the land should be just beside Boustead's HQ. Maybe they have bought it long time ago?

[valuestalker]

Did starhub green build on Boustead's land also?
Similar case probably?

For db&l, the land is acquired by Boustead? Hence they own it and lease back to the tenant?

[greengiraffe]

Boustead bought the land from a previously dissolved associate that was involved in building Starhub Green. Heard that land cost was $10m and should bring in decent profits. Cant work out exact amount unless details of plot ratio is available via to be released AR. Just keep faith with FF Wong

[Musicwhiz]

Boustead bought the land from a previously dissolved associate that was involved in building Starhub Green. Heard that land cost was $10m and should bring in decent profits. Cant work out exact amount unless details of plot ratio is available via to be released AR. Just keep faith with FF Wong

Hi greengiraffe,

This is interesting, and welcome to Value Buddies. How did you arrive at S$10 million for the land cost? I guess we will have to find out about the development cost and it has to be lower than $28 million in order for Boustead to recognize a gain on sale in FY 2014 (as their selling price is S$38 million).

Plot ratio and details can be obtained through URA website. From Onemap website (SLA), the Mukim number is 23, Lot number is 05296K. From URA Maps, the area is zoned "Business 1" and Plot Ratio is 2.5. With this info, can you then work out the estimated development charge? I think it's tough without further information.

[D123]

Plot ratio and details can be obtained through URA website. From Onemap website (SLA), the Mukim number is 23, Lot number is 05296K. From URA Maps, the area is zoned "Business 1" and Plot Ratio is 2.5. With this info, can you then work out the estimated development charge? I think it's tough without further information.

Exact figures for development charge is set by SLA on a case by case basis. You'll have to consult SLA to get the figure.

They do release indicative figures, and some charts to show the rough figures for each type and amount of top up (e.g. XX years of lease required, or XX more floor area), but I'm too lazy to dig them out now. Anyway, actual figure can differ substantially from those charts, so ultimately developers have to approach SLA for consultation.

[greengiraffe]

Hi All,

Little bird told me the amount. You guys are all hardworking. I just keep faith with the team at Boustead... I have been with them for a long time... they just keep delivering what we all are looking for - cashflow to shareholders as dividends... Personally, I do not think market really appreciates the stock and hence unless there is a big initiative that transform the company, the sale is just another feather in the cap for Boustead and shareholders...

GG

[Musicwhiz]

Dear all, Part 3 of my Boustead FY 2011 Analysis is now up on my blog. It also features a transcipt of the audiocase. Please feel free to visit and leave comments, thanks!

A snippet as follows:-

"The Real-Estate Solutions Division appears to be headed in the right direction, with FF Wong alluding to more deals in the next few months and a build-up in Boustead’s recurrent income flow through more DB&L projects. The fact that Boustead Projects can cater to niche markets bodes well for the now 100%-owned subsidiary, as this means more projects of significant size and clout would raise its profile and create a positive feedback loop. It remains to be seen if the division can manage to scale new heights in terms of revenue and profit contribution, as a large portion of its contracts are “lumpy” as well; but with FF Wong’s assurance that he is building up the DB&L orderbook flow, this may mean that revenues and cash flows at Boustead Projects would become more stable, consistent and predictable. One positive side effect is that dividends may also increase as a result."

[valuestalker]

Hi All,

After went through the AR, I am confused by the definition of "Property held for sale" versus "Investment property".
If i didn't interpret wrongly, the difference between the two:
* Property held for sale: Design, build & SALE properties?
* Investment property: Design, build & LEASE properties?

But apparently in the early portion of AR, it was mentioned that the Beijing Logistic center is all leased out?
and also, all 7 industrial db&l owned by Boustead should be under investment property?
the lease amount for FY2011 is less than 1M?

VS.