Boustead Projects

[cyclone]

Boustead Projects signs Strategic Framework Agreement with Guangdong New Co-Op to develop Agricultural Logictics Networks
* Establishment of robust business platform for China, especially in developing agricultural and commodities logistics networks
* Strategic cooperation with business unit of Guangdong Co-Op Society, financially strong business partner and reputable state-owned enterprise
* In principle, Guangdong New Co-Op will take a 42% shareholding in each Project SPV, with BP taking a 30% shareholding and other private investors taking up the remainder

http://infopub.sgx.com/FileOpen/BP%20Ann...eID=422457

[ksir]

Boustead Projects signs Strategic Framework Agreement with Guangdong New Co-Op to develop Agricultural Logictics Networks
* Establishment of robust business platform for China, especially in developing agricultural and commodities logistics networks
* Strategic cooperation with business unit of Guangdong Co-Op Society, financially strong business partner and reputable state-owned enterprise
* In principle, Guangdong New Co-Op will take a 42% shareholding in each Project SPV, with BP taking a 30% shareholding and other private investors taking up the remainder

http://infopub.sgx.com/FileOpen/BP%20Ann...eID=422457

So that's what the BP-GD1 co created for! I was wondering why the number 1, i guess it is to count the projects!
Hopefully this is a win win situation!

[cyclone]

Boustead Projects awarded iconic Mediapolis development

Boustead Projects Limited is pleased to announce that its wholly-owned entity, BP-DoJo LLP ("BP-DoJo") has been awarded a JTC Corporation ("JTC") concept and price tender to develop a multitenanted business park development (the "Development") located at the 19-hectare Mediapolis within JTC’s 200-hectare one-north development ("JTC’s one-north"). JTC’s one-north hosts a cluster of world-class research facilities, business park and start-up space, built to support the growth of the Biomedical Sciences, Infocomm Technology (ICT), Media, Sciences and Engineering sectors.

Largest development undertaken by Boustead Projects, representing first project at Mediapolis and third project at JTC Corporation’s one-north development, following the recently completed development of GlaxoSmithKline’s new global headquarters for Asia under the Boustead Development Partnership and the completed design-and-build of Seagate International Design Center – The Shugart in 2015. Construction of the Development is expected to commence in calendar year 1Q 2017 and be completed by 4Q 2018.

More details in http://infopub.sgx.com/FileOpen/BP%20Ann...eID=430221

[Bibi]

Anyone knows the reason behind Boustead Prj not paying any dividends? I thought its balance sheet looks ok.

Not vested but vested in Boustead which mention it reduced its dividend partly because Boustead Prjs didnt pay any dividends

[ksir]

Anyone knows the reason behind Boustead Prj not paying any dividends? I thought its balance sheet looks ok.

Not vested but vested in Boustead which mention it reduced its dividend partly because Boustead Prjs didnt pay any dividends

Times and again I heard the Management (Chairman, vice chair & MD) mentions that they see BP as growing company. Hence no dividend.
The last quarter cashflow in was surprising strong (although generally they focus in cashflow and not mere bottom line). I expect GSK's rental cashflow to start flowing in from next year and adding in more cashflow. They are already in net cash, hence this development is quite timely.
Grow with Leverage then pay off debts to deleverage then start the flow again.
This Development is pretty surprising to me though, as it's NOT the usual build-to-suit & to-order.
With the oversupply in the market, wondering what's the value proposition for this development. IIRC they still have 4 buildings looking for tenants (1 in iskandar).

<vested, core>

[bargainhunter]

Anyone knows the reason behind Boustead Prj not paying any dividends? I thought its balance sheet looks ok.

Not vested but vested in Boustead which mention it reduced its dividend partly because Boustead Prjs didnt pay any dividends

as ksir had mentioned, they want to be a growth company.  they did tell the cimb analyst last year that they would not be paying dividends for the first 2 years, ie i'm not expecting any dividends for the current financial year as well.

[ksir]

The Mediapolis bid was pretty close between BP ($89) and Soilbuild ($87):
http://www.jtc.gov.sg/industrial-land-an...esults.pdf

The detail doc is interesting and shed some lights on the development:
http://www.jtc.gov.sg/industrial-land-an...MSpace.pdf

At the mention of Soilbuild, it reminds me of their Solaris, hence I go back to check its figure (GFA, NLA, NPI and RNAV).
I noticed Solaris is meant for Infocomm as well, the main difference is perhaps that certain amount of spaces in BP-DoJo must be allocated for SGLaunch startups (IIRC, after 5 years they must "graduate").

The figures provide some references to base on.
To say the least, as long as the R&D and Infocomm flourishes or the demand for space is sufficient, it should be quite a good deal.

Some highlights, pardon me to use approximate numbers as I don't wish to be exact (tedious):
1. Solaris is having master lease with Soilbuild the parent and owned by soilbuild reit.
The RNAV is about S$360M and NPI should be around S$18M (escalation of 3% since 2013 S$16.7M).
2. Solaris is under 30+30 years land tenure, whereas BP-DoJo is on 30 years.
3. GFA of BP-DoJo is about 65% of Solaris (NLA is unknown for now).
4. Solaris is near One-North MRT whereas BP-DoJo is 15-20 mins away from One-North MRT.
Based on the numbers and run it against the Bid price and estimate the development costs to get the total costs.
A very rough estimate on the yield should be there.
Knowing Boustead, pretty sure they have run the more comprehensive analysis and decided to go for it.

Personally, I think the deal is not great but should have sufficient margin built in for error.

<vested>

[tycoon]

Any comments on why selling "BP-DoJo"?

[ksir]

Any comments on why selling "BP-DoJo"?

Who sell?
Since u posted 1 liner with no backup data, i also replied the same.

[money]

Any comments on why selling "BP-DoJo"?

Who sell?
Since u posted 1 liner with no backup data, i also replied the same.

i thought there was a statement issued by BP that they sold BP-Dojo. you never read it?