Chip Eng Seng

[slowandsteady]

very interesting way of computation....(cannot stop laughing)

How about this?

Had this project been continued, CES would have to tie up some ~$200mil worth of working capital over the next 3 to 4 years at least, with no assurance of 100% sales since Melbourne housing market might be set to prickle any time. The likelihood is very high in the next 3 to 4 yrs.

Estimated Avoided Cost of Loss = $200mil x (1.05)^ (4)= $243mil.

potential avoidance of loss would amount ~ 40 cents EPS.

******

I was given to understand that the cost of sales for the Victoria piece of land was at most 50 man hours. Even then, this 50 man hours were already part of the corporate overheads. They had to do their job anyway. Hence, maybe this could be taken as "sunken cost". All in all, the marginal cost to deliver the final product was close to zero.

In any case, CES can retain the cash in aussie dollar and use it to buy another big investment property in some CBD in Australia (i.e. without incurring forex exchange risk)

Dude... relax. I'm trying to make an estimate on how much CES made from this piece of business. You've been trumpeting how much money CES will make from selling this piece of land... and now suddenly you're talking about "avoidance of loss" like it was supposed to be a loss-making deal?

[greengiraffe]

Singapore group sells Carlton site for $65m
THE AUSTRALIAN MARCH 30, 2015 12:00AM
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Ben Wilmot

Commercial Property Editor
Sydney
Singapore group sells $65m Carlton site
Victoria’s Labor government has signalled a more modest approach to super tall towers. Source: Supplied
The final pieces of the redevelopment of the massive former CUB brewery site on the northern edge of Melbourne’s central business district are falling into place with listed Singaporean developer Chip Eng Seng offloading a major slice of the property for $64.8 million.

The group won approval for more than 1000 apartments last year from former Victorian planning minister Matthew Guy ahead of the election of the Labor government that has signalled a more modest approach to approving super tall towers.

The site, known as 8 Bouverie Street, Carlton, was marketed as Melbourne’s largest approved and permitted development site.

The 2927sq m site consists mainly of vacant land and includes a two-storey heritage building shell. It is on the corner of Victoria Street and Bouverie Street. Chip Eng Seng had won approval for a 72-storey, 1035 apartment high rise development.

The sale also shows the leap in values as the Singaporean group had bought the site two years earlier from private developer Grocon for $32m.

The latest Chip Eng Seng sale was handled by Colliers International’s Trent Hobart and Bryson Cameron.

Grocon has been carving up and developing parts of the 1.6ha former brewery site ever since it bought it in 2006 after paying RMIT about $39m.

Last September, The Australian reported that a large chunk of the former CUB site bordering the CBD had been sold by Grocon to a mainland Chinese developer for $60m. Earlier this month, a Singaporean syndicate bought the historic Maltstore building on the CUB site for $17m. Both those deals were handled by CBRE’s City sales team.

Near-complete projects include the Swanston Square residential tower. More than 500 units were sold in the block Grocon is developing with the backing of international funds giants Invesco and CLSA Capital Partners.

The sale will allow Chip Eng Seng to focus on its nearby Tower Melbourne apartment project, set to rise from 150 Queen Street. Once built, Tower Melbourne will rise 71 levels and house 555 apartments.

[Petertan]

I found this at

http://www.knightfrank.com.sg/resources/...mended.pdf

https://www.youtube.com/watch?v=Un9NgmYs...e=youtu.be

those who bought at high point are selling at a loss. But that is no cause to worry just yet.

[Teletubby]

May I know what has this got to do with this topic?

I found this at

http://www.knightfrank.com.sg/resources/...mended.pdf

https://www.youtube.com/watch?v=Un9NgmYs...e=youtu.be

those who bought at high point are selling at a loss. But that is no cause to worry just yet.

[Curiousparty]

CES has completely transferred the risk to these speculative buyers...

In essence, CES sold off at the peak of the commercial retail cycle, a feat never to be repeated again for many years to come...

I found this at

http://www.knightfrank.com.sg/resources/...mended.pdf

https://www.youtube.com/watch?v=Un9NgmYs...e=youtu.be

those who bought at high point are selling at a loss. But that is no cause to worry just yet.

[Petertan]

CES has completely transferred the risk to these speculative buyers...

In essence, CES sold off at the peak of the commercial retail cycle, a feat never to be repeated again for many years to come...

I found this at

http://www.knightfrank.com.sg/resources/...mended.pdf

https://www.youtube.com/watch?v=Un9NgmYs...e=youtu.be

those who bought at high point are selling at a loss. But that is no cause to worry just yet.

Yes, they already have the money in their pocket safe and sound for the mall part. Those who bought and unable to service now is their woes. Now we got to see their hotel part going forward. Should be bright with tourism forecast to increase.

[westin1]

Something seems to be wrong with this gem or so called gem.... if you notice, price has been stuck below 0.975 for a period of time... by the time it xd, it will most likely deflate ...likely major correction looming between now and may 2015..

[Curiousparty]

Yes, CES is a gone case. Pls dump and walk away

urge all your friends to dump too. tks.

Thanks jjlim84 .... if ces is so good, price wont stay stagnant like this.... look at ho bee to see how low it can go....

Something seems to be wrong with this gem or so called gem.... if you notice, price has been stuck below 0.975 for a period of time... by the time it xd, it will most likely deflate ...likely major correction looming between now and may 2015..

[westin1]

Will do , thanks CP . Will pick this up again when it reaches 0.45 ... haha...

[jjlim84]

ya...something wrong with this gem...price has been stuck below 0.975 for quite some time...think funds are deliberately pushing it down to accumulate...after accumulate finish will most likely push it...likely major uptrend looming between now and may 2015...