Excerpts from analyst's report

Philip Securities analyst: Caroline Tay

ferdinandsadeli_4.14Ferdinand Sadeli, executive director and CFO of Sinarmas Land. NextInsight file photo.Sinarmas Land Limited (SML) has entered into an agreement for the sale of the property known as New Brook Buildings, 8-18 Great Queen Street, London, United Kingdom for an aggregate cash consideration of GBP113,400,000 (equivalent to SGD233,717,400).

The property is a freehold Grade A office building consisting of a 12-storey tower connected to a 9-storey wing, with a NLA of approximately 99,911 sqft and estimated to contribute to about 2.3% of the bottom-line based on results for the nine-months period ended 30 Sep 2014.

With the recent rise in the capital value of the London commercial properties, the management took the timely opportunity to realise the attractive rate of return for this investment and unlock the capital gain for future investments.

This transaction is expected to reap a gain on disposal of approximately SGD73mn and will further strengthen the healthy balance sheet.

We believe the management still maintains its goal to grow recurring income and will continue to source for accretive commercial investments in the gateway cities.

We like SML for its superior profit margins with huge potential of value creation from its vast land bank. We maintain our BUY rating with TP$0.96.
 

Recent story: OSK-DMG: Deep value in SINARMAS LAND, target price $1.01

 

You may also be interested in:


You have no rights to post comments

Counter NameLastChange
AEM Holdings2.760-0.050
Avi-Tech Electronics0.265-
Best World1.8000.010
Broadway Ind0.086-0.001
China Sunsine0.390-
ComfortDelGro1.390-0.010
Delfi Limited1.0500.010
Food Empire1.4200.020
Fortress Minerals0.2700.020
Geo Energy Res0.390-0.005
GSS Energy0.027-0.002
Hong Leong Finance2.560-
Hongkong Land (USD)3.270-0.060
InnoTek0.4350.005
ISDN Holdings0.340-0.005
ISOTeam0.035-
IX Biopharma0.041-0.005
Jiutian Chemical0.025-
KSH Holdings0.2500.005
Leader Env0.050-0.003
Medtecs Intl0.135-0.004
Nordic Group0.345-0.005
Oxley Holdings0.093-
REX International0.121-0.003
Riverstone0.745-
Sinostar PEC0.137-0.002
Southern Alliance Mining0.605-
Straco Corp.0.515-0.010
Sunpower Group0.215-
The Trendlines0.085-
Totm Technologies0.024-0.002
Uni-Asia Group0.840-0.010
Wilmar Intl3.390-0.020
Yangzijiang Shipbldg1.660-0.030
 

We have 1915 guests and no members online

rss_2 NextInsight - Latest News