Low Keng Huat (Singapore)

[mrEngineer]

I was talking crap. lol.

Anyway, looking at the subscription rates for DBSS projects and BTO, perhaps LKH believe that it should not be a major problem sell off all the units. The next land release is at jurong which may not be as attractive project as the punggol one.

[yeokiwi]

FY2010 result

Revenue $272,164,000
Net profit $83,687,000

EPS 11.06cts
Dividend 3cts final + 1 cts special

http://info.sgx.com/webcoranncatth.nsf/V...400227D27/$file/ANCEFY31Jan2011.pdf?openelement

[mrEngineer]

Cashflow is slower this time as much of the cash is used to reduce debt.

Seems to me that the Low family is more interested in retaining cash in the company then rewarding the shareholders. I bet it will be privatised one day.

[Poowawa]

Mr Engineer, 4 cents dividend gives a very decent yield. I do not know what you are expecting but I am happy. On the contrary to your remark, my view is if the Low family doesn't want to reward shareholders, they would have dished out a huge dividend. Why? Look at how much shares they have. With a huge dividend, they can easily recover a lot of their money used in the takeover offer.

Development of properties is capital intensive. Retaining some cash in the company for the business will ensure a smoooth and steady flow of dividends.

[mrEngineer]

It is decent yield but I am expecting around 6-8 cents so that they can slightly recover their recent cash outlay and balancing with sufficient cash in the company if they were shareholder friendly. We have to note that it is even mentioned by the management themselves that real estate business is not expected to perform well for the foreseeable future due to recent government intervenation and the business strategy is changing to focus on recurring income. So why do they even keep the cash for?

If I were in their shoes (as I am a self-centered person), I would also not choose to pay out large amount of $$$ and wait till the market tanks, start to fully utilize the cash with the effect of minimizing the balance sheet and privatised the company thereafter. They did it with GCB and why not repeat the history?

[ngcheeki]

Ah Huat is the highest bidder for the DBSS site at Upper Serangoon.

http://info.sgx.com/webcoranncatth.nsf/V...C00103C4F/$file/ANCE011210.pdf?openelement

$206 psf + $200psf construction cost... Breakeven is $450psf?

Assuming selling price of $550psf, not much meat...
For a 1200psf 5 room flat, the selling price is $660k????

$660k for a 5-room flat in SengKang. Wow... that's expensive.


The location is not that fantastic

Based on the following link

http://www.propertyguru.com.sg/property-...g-tomorrow

"Prices range from S$359,000 to S$404,000 for a three-room flat (721 sq ft), S$485,000 to S$571,000 for a four-room flat (990 sq ft) and S$606,000 to S$676,000 for a five-room flat (1,173 sq ft). Meanwhile, five-room premium units — which come with four bedrooms each — have a price tag of between S$608,000 and S$706,000."

Based on the above data, the price psf for the various room types are:

3 Room: $497.92 to $560.33
4 Room: $612.12 to $682.83
5 Room: $518.33 to $601.87

[mrEngineer]

The interest for parkland residences seem poor with less than 2 times oversubscription. This is quite bad indication of demand for their units. I remember belvia DBSS oversubscription rate was 3-4 times but now currently not fully sold out yet..

[ngcheeki]

"As of late yesterday evening, there were 956 applications for the 680 units - from three- to five-room types - in Parkland Residences."

See here for more detail: http://property.st701.com/resources/inde...DBSS-flats

May I know how do you find out the number of units reminding for DBSS project? Is there any central website that publishes out this information just like what you have @ URA website for private properties?

[mrEngineer]

My friend haopened to apply for belvia so I know that. No public information usually but u could check with property agents. Otherwise another source would be from the development facebook page or forum threads with topics mainly from that development.

[ngcheeki]

Thank you for your pointers .

The following is the sale status of the 40% own development property "The Minton" and inform on their Paya Lebar commercial property:

November 2011 The Minton
Total Number of units: 1145
Cumulative Units Launched to-date: 950
Cumulative Units Sold to-date: 809
Cumulative Units Launched but Unsold: 141
Median Price ($psf): 916

Currently, it is 70.65 Sold.!!

he following is the news on 80% own Paya Lebar Rd/Eunos Rd commercial site

With the introduction of additional buyer’s stamp duty
(ABSD) on Dec 7, some investment demand is being channeled from the
residential sector to the strata-titled commercial sector. A consortium
comprising Low Keng Huat, Guthrie and Sun Venture launched the sale of
office units in December, at a prime commercial site next to Paya Lebar MRT
station that the consortium clinched last year with a bid of $872 psf ppr, and
has so far achieved sales of 60 units with a value of $80m. The average
pricing for the 60 units was $1700 psf, at the lower end of an earlier indicative
price range of $1650-2000 psf. The development comprises of 550 stratatitled office units and a retail podium covering 3 floors with NLA of 95000 sqft.
Assuming the developers are able to sell the office space at $1,700 psf and
retail at $1800 psf, we estimated the gross development value at $900m,
which should be mildly accretive to the consortium given the land cost of
$586m and estimated construction cost of $450-500 psf. Similarly, demand for
strata-titled industrial units has also remained steady. We expect investment
demand in prime, well-located strata-titled commercial units to remain buoyant
as this segment is less susceptible to policy measures, so far. (Singapore
Research)

http://www.remisiers.org/cms_images/rese...atters.pdf