Hiap Hoe

More
15 Aug 2014 20:04 - 15 Aug 2014 20:06 #20654 by Wiki
Replied by Wiki on topic Hiap Hoe
Hi Aquarius,

Hiap Hoe has already announced in its 2Q results that "Combined value of units sold to-date at 6-22 Pearl River Road mixed-development project anounted to over S$150m".

infopub.sgx.com/FileOpen/HiapHoe%20NR%20...cement&FileID=309308

Details are shabby here in terms of how many units constitute S$150m and at what prices but at least it is a more solid indication from management that units are moving.
Last edit: 15 Aug 2014 20:06 by Wiki. Reason: Grammar

Please Log in or Create an account to join the conversation.

More
29 Aug 2014 01:55 #20743 by ngcheeki
Replied by ngcheeki on topic Hiap Hoe
DMG report on Hiap Hoe.

We met up with Hiap Hoe (HIAP SP) recently following its interim results. The following are our takeaways: 1) Occupancy for its 2 hotels Days Hotel and Ramada Singapore at Zhongshan Park has steadily ramped up to 80-90% in the last few months. The group has been able to build up a broad corporate and leisure clientele, capitalizing on its location to tap into niche segments such as medical tourists, sporting events and aircrew businesses. Meanwhile, occupancy for its retail and office components are close to 100%; 2) On the residential front, the group has sold 92% and 75% of Skyline 360° and Waterscape at Cavenagh, respectively. The proposed bulk sale of Treasure@Balmoral at SGD1850 psf has received interest from several bidders with negotiations still on-going; 3) The industrial project at Kallang Pudding has been launched with selling prices at 1,100-1,200 psf, with 7 out of 55 units sold so far; 4) The group recently launched its maiden overseas project, Marina Tower, in Melbourne. Marina Tower comprises of 461 residential apartments and a 269-room hotel to be managed by Sheraton under the Four Points brand, The group has sold 70% of the residential units and targets to complete selling the remaining units by year-end. The launch of its second Melbourne property, 380 Lonsdale Street, is slated for next year, while 206 Bourke Street (Melbourne) and Sterling Street, Perth will be kept for recurring income, having secured these at attractive cap rates of 8.5-9%. Hiap Hoe intends to build on its hospitality business, building on its success in Singapore. Following the successful takeover of Superbowl at a 40% discount to valuation and after imputing lower ASPs for its Singapore residential projects, we have revised our TP to SGD1.03, based on a 40% discount to its RNAV. Buy maintained.

rhbosk.ap.bdvision.ipreo.com/NSightWeb_v...547-138acdcd98c6.pdf

Please Log in or Create an account to join the conversation.

More
14 Sep 2014 20:47 #20841 by Ogre
Replied by Ogre on topic Hiap Hoe
www.theedgesingapore.com/component/content/49057.html?task=view

"The developer could be under pressure to sell the project as the government’s Qualifying Certificate requires that listed developers have to sell all the units in a project within two years of obtain ing a Temporary Occupation Permit (TOP), failing which they have to pay an extension pre mium. As Treasure on Balmoral’s TOP was in November 2012, Hiap Hoe will be subjected to an extension fee for unsold units from this November."

Hiap Hoe will be hit by an 8% extension fee this november. Unless it is successful in the bulk sale of all the units.

Please Log in or Create an account to join the conversation.

More
22 Sep 2014 16:03 - 22 Sep 2014 16:04 #20859 by Mr.J
Replied by Mr.J on topic Hiap Hoe
Hiap Hoe Ltd. (HIAP SP) said it has entered a pact to sell units at its Skyline 360 and Signature projects for SGD 35 million and SGD 7 million respectively.
Last edit: 22 Sep 2014 16:04 by Mr.J.

Please Log in or Create an account to join the conversation.

More
22 Sep 2014 16:15 #20860 by Wiki
Replied by Wiki on topic Hiap Hoe
I believe the move to sell balance units of the 2 projects to its own subsidiary was to find a way around government imposed penalty for developers with units unsold after a 2 year windown upon TOP.

Hopefully, they can find a buyer for the block sale of Treasures on Balmoral project soon too.

Please Log in or Create an account to join the conversation.

More
23 Sep 2014 13:13 - 23 Sep 2014 13:15 #20866 by sumer
Replied by sumer on topic Hiap Hoe
I think Hiap Hoe’s latest move signals that it is more willing to pay the 15% stamp duty incurred in transferring the remainder units to its subsidiaries than to pay the developer penalty (which recurs every year as long as the units are not sold).

I think it makes sense based on the following calculations (for Skyline):

The remainder 5 units consist of 4 lower PHs of 3,929 sf and 1 super PH of 6,523, Total: 22,239 sf.

Transfer price: $35m, or $1,574 psf.

Stamp duty: 15% X $35m = $5.25m, Total cost: $40.25m.

Total cost to subsidiary (in psf) = $1,810 psf. (However, there is also a seller’s stamp duty. Assuming Hiap Hoe is able to sell these units only in year 4 or 5, then the amount is not substantial. Govt may also remove some measures (including seller’s stamp duty) in future.)

These 5 PHs have fantastic 360 degree views, including those of the city and Marina Bay. I think Hiap Hoe feels that it’s better to take its time to sell, as asking Orchard land prices alone are already $1,500-1,800 psf ppr, vs the cost price of $1,810psf of these completed Skyline units.

Hiap Hoe’s move, I believe, is the start of a trend by developers to do the same, especially if the remainder units sit on freehold prime land, which will get more scarce and harder to replace at reasonable prices.

I am neutral on Hiap Hoe’s latest move but I hope it finds a buyer at a reasonable price for its Treasure at Balmoral.
Last edit: 23 Sep 2014 13:15 by sumer.
The following user(s) said Thank You: gmj

Please Log in or Create an account to join the conversation.

Share Prices

Counter NameLastChange
AEM Holdings3.6900.080
Avi-Tech Electronics0.2750.025
Best World1.770-
Broadway Ind0.090-
China Sunsine0.420-
DISA0.003-
Food Empire0.955-0.010
Fortress Minerals0.360-
Geo Energy Res0.230-
Golden Energy0.9600.005
GSS Energy0.0440.005
InnoTek0.435-0.005
ISDN Holdings0.4300.015
ISOTeam0.0800.002
IX Biopharma0.081-
Jiutian Chemical0.056-0.001
KSH Holdings0.3300.005
Leader Env0.0860.004
Medtecs Intl0.149-
Meta Health0.015-
Nordic Group0.4600.010
Oxley Holdings0.1240.001
REX International0.166-0.002
Riverstone0.595-0.005
Sinostar PEC0.1570.004
Southern Alliance Mining0.780-
Straco Corp.0.470-
Sunpower Group0.310-0.015
The Trendlines0.099-
Totm Technologies0.083-
UG Healthcare0.159-0.003
Uni-Asia Group0.9000.010
Wilmar Intl3.970-
Yangzijiang Shipbldg1.270-0.030

NextInsight RSS

rss_2 NextInsight - Latest News

Online Now

We have 2320 guests and no members online