"Property stocks to climb higher?" -- that is the title of the cover story of The Edge Singapore's current Oct 2-8 edition.
It's a timely topic given the improved sentiment of property buyers, and higher (even eye-popping) bids for landbank by developers.
We highlight three of the stocks covered in The Edge Singapore's article, and reproduce some excerpts. (For the rest and other details, go buy a copy from the newsstands for $5.)
|
|
NAV |
Potential addition to NAV |
Reason for addition to NAV |
Stock price (Sept 27) |
|
Sing Holdings |
63.75 c |
20 c |
Sale of Parc Botannia |
41 c |
|
Chip Eng Seng |
$1.20 |
40-45 c |
Sale of High Park Residences & Grandeur Park Residences |
77.5 c |
|
Tuan Sing |
77 c |
~13 c |
Completion of Robinson Tower and Robinson Point |
37.5 c |
Excerpts from The Edge Singapore:
Sing Holdings is planning to build four blocks of 22 storeys with 735 units. Some property analysts say the Fernvale project could attain an average selling price (ASP) of close to $950 psf, which would add $83 million, or 20 cents a share, to Sing Holdings’ current NAV of 63.75 cents a share. Sing Holdings last traded at 41 cents, a relatively deep discount to its NAV. |
| Close to Sing Holdings' Fernvale is the 1,399-unit High Park Residences, which looks likely to have a big impact on its developers, a consortium consisting of Chip Eng Seng (60%), KSH Holdings (20%) and Heeton Holdings (20%). This project was launched in March last year and was fully sold by March this year. The site was acquired for a total of $487 million. The saleable GFA of around 1 million sq ft translates into a GDV of almost $1 billion. By some estimates, Chip Eng Seng's share of the earnings from the development of High Park Residences is around $170 million. The 720-unit Grandeur Park Residences in Tanah Merah, launched by Chip Eng Seng in February this year, is 72% sold. It will add a further $100 million, or 18 cents a share, to Chip Eng Seng's NAV when fully sold. As at June 30, the company's NAV was $746 million. Its shares are currently trading at a 35% discount to its NAV per share. Meanwhile, Heeton is trading at a 66% discount to its NAV. |
| Tuan Sing is developing two office buildings on Robinson Road - Robinson Tower and Robinson Point -- which are scheduled to be completed next year, just as the office property market is expected to take off. These two buildings could be worth as much as $668 million and $352 million, respectively. Taking these assets into аcсount, (Harvard) Chi figures Tuan Sing’s RNAV соuld be as much as 90 cents a share, which is 140% more than its current price. |