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(30-10-2014, 09:25 PM)Curiousparty Wrote: How badly would CES bleed from the unsold units at Fulcrum? Let's talk about facts and figures.
Will the EPS loss be in the order of 10 cents ? 20 cents ?
How many per cent of the property does the developer has to sell in order to be profitable? I know several factors has to be taken into consideration, like land cost, construction cost, and etc. But is there any gauge that we can estimate, if we do not know the cost in detail, like for instance, the percentage of property sold, or is there any method to ascertain their profitability. Thanks to all buddies for your generousity in sharing your precious knowledge. I come here almost a few times a day to learn. This place is a gold mine. Thanks again. And sorry for naming, I will refrain from doing that with immediate effect. Thank to the moderator for not giving me a yellow card.
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Fulcrum TOP is expected 2016 right?? Isn't it still some time away? And will it have much impact on the 2014 or 2015 financial statements?
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If it TOP in 2016, do not think it will impact 2014 & 2015. If any, it will be 2016 at lower selling prices?
Please correct me if I am wrong.
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31-10-2014, 01:39 PM
(This post was last modified: 31-10-2014, 01:50 PM by Curiousparty.)
Damien Wrote:If it TOP in 2016, do not think it will impact 2014 & 2015. If any, it will be 2016 at lower selling prices? Please correct me if I am wrong. The market weighs negative news eg fulcrum unsold units much more than good news.
1. Carlton project has been approved . Previously many said that project will be gone case etc . Like I said , Planning minister has the final say and the rest of dissidents can go and fly kite. 2. Massive NAV gain from Alex project - mall plus hotel . 3. Good NAV gain from Juncture 9 and Nine residence projects. The total NAV gain from these 3 projects can replicate the entire market cap 
Of course there are other good projects such as Fernvale project , malacca , Doncaster , etc There is a strong likelihood that company will resume share buyback again after q3 results
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Actually any one has any idea why the sales at Fulcrum is unsatisfactory? This goes the same too for The Line at Tanjong Rhu just beside it. They are very near to Marina Bay, the sports hub.
They say that it is due to lack of access to public transport, but nowadays which private condo is near to an MRT anyway? The Tanjong Rhu MRT station is expected only to be completed by 2023 though
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I don't think fulcrum can sink CES, it is too small property, some 128 units, land costs 86m. I believe it is just current market sentiment. The most it break even. And since, it has so many profitable projects which already sold, just one gone sour( have yet to confirm or realise since it TOP is 2016) , then why worry? too far away, by then most likely we would have sold with handsome profit. 
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Fulcrum project, in this year AGM Raymond mentioned that the company did not market Fulcrum. Because they want to wait the right time.. where i think he make a good point, since the location is not that good. And i think at that time he probably knew the thompson line. And, i think the company is planning to market again the project soon.. either wait till 2016, then just start selling again. I don't think is a problem. If top in 2016, there is still another 2 years before penalty. That is 2018.. would that market so bad till 2018?
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31-10-2014, 09:00 PM
(This post was last modified: 31-10-2014, 09:01 PM by CY09.)
Hi RT,
Under current policy circumstances, the 2018 deadline is nothing. Hiap Hoe has made its move for its balestier condo which it couldn't sell in the open market by setting up a subsidiary and selling to the company. If this move is acceptable under current laws, this means all developers will set up wholly own subsidiaries with all Singaporean Directors to bypass it if they cant sell their unsold units
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(31-10-2014, 09:00 PM)CY09 Wrote: Hi RT,
Under current policy circumstances, the 2018 deadline is nothing. Hiap Hoe has made its move for its balestier condo which it couldn't sell in the open market by setting up a subsidiary and selling to the company. If this move is acceptable under current laws, this means all developers will set up wholly own subsidiaries with all Singaporean Directors to bypass it if they cant sell their unsold units
Well, think they still have to the max 15% ABSD + 3% stamp duty right... Is that really lot of savings compared to paying QC?
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31-10-2014, 09:08 PM
(This post was last modified: 31-10-2014, 09:25 PM by CY09.)
(31-10-2014, 09:03 PM)Hill Wrote: (31-10-2014, 09:00 PM)CY09 Wrote: Hi RT,
Under current policy circumstances, the 2018 deadline is nothing. Hiap Hoe has made its move for its balestier condo which it couldn't sell in the open market by setting up a subsidiary and selling to the company. If this move is acceptable under current laws, this means all developers will set up wholly own subsidiaries with all Singaporean Directors to bypass it if they cant sell their unsold units
Well, think they still have to the max 15% ABSD + 3% stamp duty right... Is that really lot of savings compared to paying QC?
They will definitely incur the 3% stamp duty, I have checked and MAS does charge 15% for corporate entities, thus total penalty is 18%. For QC penalties, it is first year 8%, 16% then 24% separately. To cnclude, it is a better option by incorporating a subsidary after the 2 yr grace period if the developer is aware, they cant sell the remaining units with an additional 2 years beyond the grace period of 2 years after TOP. And being subsidary, the company is now able to rent out the unsold units
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