Yes I'm aware of Heeton and its relatively large discount to RNAV. However, there are several reasons why I don't find it as appealing as CES.
1) Heeton's assets are mainly its properties which the management will unlikely sell in the future, so the RNAV is not realisable (even if they do try to realise, timing is bad.)
2) I personally don't think the management is executing as well as CES. The recent land they got with Koh Bros was at a high price and the redevelopment of El Centro was rather late (only 23% of resi sold). Seems like they are willing to sacrifice margin.
3) Heeton is generally cash poor and slow in recycling cash, which leads to low dividends. Without any complimentary businesses like construction, heeton is basically a cash recycling game. Their performance depends on how well they reinvest cash and their return on investment.
I'd rather invest in a much better company with a slightly lower discount to RNAV than a company with mediocre management but with higher discount to RNAV
Carlton Brewery site plan has been submitted to Victoria DCPD.
It is going to be even taller than Tower Melbourne, same architect as Tower Melbourne's. If approved and sold out, going to rake in higher profit than TM because of the bigger site
Are you referring to TYK? If yes, don't think he is buying CES for quick gain, and by the way he didn't lay low completely this year as he bought some more. If you realize,he always bought at the same time when CES did share buy back, don't know what in his mind but can't think his action is completely unrelated to CES's.
by the way, my Manhattan has obtained TOP in Q1, and I believe 100PP too because I didn't see anyone working there anymore since this Monday when I drove past.
going to see good result in May when Q1 result is released.
Thank you Edifice for your updates on Manhattan and 100PP. Yes, 3 or 4 quarters of this year would see CES reporting very good results.
A note of caution: The TM site in Melbourne seems to have problem getting its demolition restarted. According to a forum site, disputes are on-going and the results are uncertain. I guess shareholders will be asking management about this in the coming AGM.
This uncertainty may explain the recent resistance in the counter’s share price, despite a rosy 2014. Some players could in fact be selling a bit of their holdings in case the outcome of the TM situation does not favor CES, or if the local press covers the dispute story.
On a more positive note, property counters have recently not reacted negatively to headline news on weakening home prices in Singapore. In fact, some of the bigger caps have rebounded. Perhaps some of this downside news has indeed been priced into prop stocks.
