Boustead Projects

[ksir]

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?

I did and i don't think they sell bp-dojo. Hence i was asking which is the reference? Otherwise it is futile to discuss.

[weijian]

hi,
Forummer Ksir has a valid concern. Would like to encourage good posting ethics (i call this self regulating) by posting the relevant links/short summary to the discussion/question. It contributes positively to the overall discussion.

Good posting ethics by all forummers is essential for VB to stand out among the others (forums).

Moderator

[slowandsteady]

If the news everyone is talking about but not posting the link on is the one below, then it's actually just transferring the agreed portion of co-investment to Al Sayira.

It may actually be easier to set up a JV company, but this works as well.

http://infopub.sgx.com/FileOpen/BP%20Ann...eID=436011

[ksir]

Interesting read on the JV:
Boustead, SWF to co-invest S$250m in new industrial facilities here
http://news.asiaone.com/news/business/bo...ities-here

This is also a way to find development projects for BP's order book.
I can't figure out the details, but IIR(ead)C, the earning from such JV development projects are cancelled out in BP's financial book.
Considered as interco? Ehm.

[ksir]

2 interesting announcements for the start of the year:
1. Termination of Ausgroup rental contract.
http://infopub.sgx.com/FileOpen/BPL_Anno...eID=437024
Highlights:
In consideration for the payment of outstanding rental and property tax in
the amount of S$549,012.99, reduced rental of S$147,879.53 for the period
from 16 January 2017 to 31 January 2017 and an additional lump sum of
S$9,407,184.14 (the “Surrender Sum”), the Landlord consents to the
Tenant’s surrender and return of the Surrender Premises on 31 January
2017;

The sum of S$9,407,184.14 is to be paid partly by forfeiture of the existing
security deposit of S$3,235,862.74 held by the Landlord in cash and with
the remainder paid by monthly instalments over a period of 2 years, with
the last instalment to be paid on 31 December 2018;

2. Divestment of TripleOne Somerset.
Highlights:
As announced on 9 January 2014 by Boustead Singapore Limited, Boustead
Projects had entered into a PREH-led consortium to invest in PSI to purchase
TripleOne Somerset for S$970 million. Boustead Projects acquired a 5.5% stake
in PSI, investing approximately S$17.9 million.

Boustead Projects’ share of the total consideration paid by the Purchaser is
estimated at S$27.5 million. Boustead Projects expects to recognise a gross
gain on disposal of approximately S$8.9 million after deducting divestment
fees.

Investment start: Jan-2014
Divestment: Jan-2017
Vested Period approximately 3 years.
Buy amount: S$18M
Sell amount: S$27M
Return: S$8.9M (or approximately 50%)
A rather decent investment return.

<vested>

[kichialo]

Buyer of TripleOne is Stanley Ho.

[ksir]

BPL Q3 result:
http://infopub.sgx.com/Apps?A=COW_CorpAn...uddies.com

Net earning increased.
Earning quality decreased.
Outlook wise is improving.

Not taking into account the one-off gain from triple-one & Ausgroup in next quarter or next year, the ROE is still a decent 14%.
While nothing to shout about, but with the gloomy industrial estate industry, it is probably as well managed as it possibly able to.

Some highlights:
1. Some leases expired and currently vacant.
With Ausgroup also expiring, but with about 2 year rentals on hand, they have times to do something about it.
However, this also means that rental income will be going down in near future.
Leasing unit rental income is no longer as clear hence the earning quality no longer as good.

2. OTOH, GSK rental is probably coming in next FY, or from April 2017 onward.
From site visit, I believe it is currently performing the M&E and interior fit out.

3. After Tripleone, naturally we will be asking about Tongzhou.
However, there's no update on the development.
From my understanding, it is yet to start development and has been delayed from the 2017 completion date as described in previous announcement.
The absolute return percentage wise should be better than Tripleone, but XIRR wise I have no idea since we don't know when it will be completed or ever be.

4. No news on Iskandar JV as well as the development with Guangzhou co-operatives.
I view those 2 as good-to-have no-expectation category.

5. Mediapolis site is currently no-activity.
We shall wait for more details on the planning for this.

6. I generally put far more weightage on the leasing unit than the D&B unit.
I see the leasing unit as core and D&B as complement.
This is probably not the same as how the company see it.

7. This year and probably next year, we shall be getting a bumpy EPS.
Although the earning quality is no longer as decent, the outlook is no longer as gloomy.

[Muck]

3. After Tripleone, naturally we will be asking about Tongzhou.
However, there's no update on the development.
From my understanding, it is yet to start development and has been delayed from the 2017 completion date as described in previous announcement.
The absolute return percentage wise should be better than Tripleone, but XIRR wise I have no idea since we don't know when it will be completed or ever be.

http://perennialrealestate.listedcompany...LPUR.2.pdf

 Construction works continued to progress well on-site but the overall schedule was delayed in the process of receiving the necessary construction permits. 
 Construction permits have been obtained for two plots, with the remaining four plots expected to be received by 2Q 2017. 
 Beijing Tongzhou Integrated Development Phase One and Phase Two are expected to complete in 2020 and 2019 respectively. 

The first batch of Beijing municipal government administrative offices is expected to move to Tongzhou District by the end of 2017.
  Beijing Tongzhou Integrated Development is now only 20km from the Beijing Capital International Airport with the completion of Bifu Road on 12 December 2016, serving as the shortest route from Tongzhou District to the airport. 
  Further plans to improve the infrastructure includes the building of tertiary institutions and acceleration of resettlement and amenities development.
  Construction for seven road projects, stretching some 75 km, and eleven new infrastructural projects, including bridges and bus lanes, will start in 2017.
  Beijing Tongzhou district will enjoy enhanced accessibility and connectivity with a planned rail network featuring inter-city, suburban and urban lines.

[ksir]

3. After Tripleone, naturally we will be asking about Tongzhou.
However, there's no update on the development.
From my understanding, it is yet to start development and has been delayed from the 2017 completion date as described in previous announcement.
The absolute return percentage wise should be better than Tripleone, but XIRR wise I have no idea since we don't know when it will be completed or ever be.

http://perennialrealestate.listedcompany...LPUR.2.pdf

 Construction works continued to progress well on-site but the overall schedule was delayed in the process of receiving the necessary construction permits. 
 Construction permits have been obtained for two plots, with the remaining four plots expected to be received by 2Q 2017. 
 Beijing Tongzhou Integrated Development Phase One and Phase Two are expected to complete in 2020 and 2019 respectively. 

The first batch of Beijing municipal government administrative offices is expected to move to Tongzhou District by the end of 2017.
  Beijing Tongzhou Integrated Development is now only 20km from the Beijing Capital International Airport with the completion of Bifu Road on 12 December 2016, serving as the shortest route from Tongzhou District to the airport. 
  Further plans to improve the infrastructure includes the building of tertiary institutions and acceleration of resettlement and amenities development.
  Construction for seven road projects, stretching some 75 km, and eleven new infrastructural projects, including bridges and bus lanes, will start in 2017.
  Beijing Tongzhou district will enjoy enhanced accessibility and connectivity with a planned rail network featuring inter-city, suburban and urban lines.

I read that as well, it is mentioned that phase 1 (the one BP has interest in) completion will be later than phase 2, in 2020.

When i relate to "Construction permits have been obtained for two plots, with the remaining four plots expected to be received by 2Q 2017."
We can sort of guess ya?

[Muck]

3. After Tripleone, naturally we will be asking about Tongzhou.
However, there's no update on the development.
From my understanding, it is yet to start development and has been delayed from the 2017 completion date as described in previous announcement.
The absolute return percentage wise should be better than Tripleone, but XIRR wise I have no idea since we don't know when it will be completed or ever be.

http://perennialrealestate.listedcompany...LPUR.2.pdf

 Construction works continued to progress well on-site but the overall schedule was delayed in the process of receiving the necessary construction permits. 
 Construction permits have been obtained for two plots, with the remaining four plots expected to be received by 2Q 2017. 
 Beijing Tongzhou Integrated Development Phase One and Phase Two are expected to complete in 2020 and 2019 respectively. 

The first batch of Beijing municipal government administrative offices is expected to move to Tongzhou District by the end of 2017.
  Beijing Tongzhou Integrated Development is now only 20km from the Beijing Capital International Airport with the completion of Bifu Road on 12 December 2016, serving as the shortest route from Tongzhou District to the airport. 
  Further plans to improve the infrastructure includes the building of tertiary institutions and acceleration of resettlement and amenities development.
  Construction for seven road projects, stretching some 75 km, and eleven new infrastructural projects, including bridges and bus lanes, will start in 2017.
  Beijing Tongzhou district will enjoy enhanced accessibility and connectivity with a planned rail network featuring inter-city, suburban and urban lines.

I read that as well, it is mentioned that phase 1 (the one BP has interest in) completion will be later than phase 2, in 2020.

When i relate to "Construction permits have been obtained for two plots, with the remaining four plots expected to be received by 2Q 2017."
We can sort of guess ya?

I'm not sure what more to make of it. Each phase consists of 3 plots. Previously it was mentioned that each phase was only lacking 1 of 4 construction permits. In any case, it's already a 4-year delay from first announcement, based on the current 2020 target for phase 1.

Waiting patiently

<vested BSL & PREH>