"Sumer" -- recognised as a sharp property investor -- posted the following in the NextInsight forum two days ago in response to a reader's request.
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1. Its multi-year GBD (Gaobeidian) project;
I am assuming ASP of $1,600 psf and breakeven of $1,450psf for its Woodleigh site.
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Hiap Hoe owns the 391-room Ramada Singapore at Zhongshan Park in Balestier. NextInsight file photo.3. Hiap Hoe and Heeton remain underperformers as shareholders get frustrated and give up on mgt and major shareholders’ deaf ears. That explains their steep discount to NAV, as shareholders grow weary attending their AGMs and hearing the same old excuses.
Nevertheless, for those with patience, there may be surprise privatization offers due to their cheap valuations.
Hiap Hoe has been quite inactive in recent years but their hotel assets are hugely undervalued. Heeton’s mgt is not sharp, missing out on making money at iLiv and Grange Infinite. Hiap Hoe also sold off their Balmoral and Waterscape projects at unfortunate prices. I have reduced my holdings in these 2 stocks in favor of KSH and CES.
4. Bukit Sembawang and Frasers Centrepoint Limited (FCL) are 2 other prop stocks that I own and prefer. Bukit should have enough land bank for 10 years of development, a rarity in Singapore. I estimate its land bank can yield in excess of $1b in gross profit. FCL is my preferred exposure to Australia.
