2nd Liner Prop Stocks

Hi Sumer

Would you like to share your view on CES given all the latest developments:-

1. 2014 results
2. Divestment of Victoria project
3. Resolution of TM project
4. TOP of Nine Residence and Junction 9 in 2015 (brought forward)
5. Re-Launching of Fulcrum in 2H 2015
6. Soon to launch Fernvale project

etc

sumer wrote: Heeton: unusually high volumes on the sell side recently, but these were well absorbed by the market and did not lead to new lows. Insiders are also buying at current levels, which is positive and a reminder that the majority shareholders own about 70% (about 31.3m) of the warrants which expire in Sep 15, and has a conversion price of 70ct.

If I am not wrong, they are likely to exercise these warrants, bringing in cash into the company while increasing the majority shareholders’ stake in the company, if other warrant holders do not exercise their warrants.

On that note, the majority shareholders may not push the stock up above 70ct prior to the expiry of the warrants so that they can increase their stake through the non-exercising of warrants by others. But certainly around 60ct, they could continue to accumulate.

We can pay attention to the launch of Heeton/Koh Brothers’ EC project in Jurong next. The Lake Life EC had been well received (close to 100% sold) recently. Lack of EC launches in Jurong could bode well for the JV’s project at Westwood, part of which has a rather good view of the natural environs of Tengah reservoirs and forest reserve.

KSH: stock has been stagnant for some time, probably due to lack of catalysts. However, Lian Beng recently announced good results and part of it is attributed to the recognition of revenue and profit from 2 highly profitable JVs – Newest and KAP – which KSH (and Heeton) are also partners. This will mean KSH and Heeton will also start to book profits from these ventures this quarter, perhaps in a more meaningful way.

If I am not wrong, one of its projects Cityscape also received TOP last quarter, and this should further contribute to profits.

There is also a higher than usual quantity of selling these few days at KSH but so far, it is well absorbed. The company has also been seen buying back shares at current levels previously, and the biggest minority shareholder Prof Yip could also be absorbing the selling.

CES: I have not made any projection on FY15 results, but fundamentally nothing much has changed for the counter.

OXLEY -- one hard-running biz that is going places. Oxley has a market cap of S$1.5 B. Such a fast-growing company, unlike many developers who have been slow to capitalise on opportunities.

I was not surprised to see it rebound on Fri to 50 cents. U seen that Eric and Ching have been buying nearly $5M worth of Oxley notes recently?

infopub.sgx.com/FileOpen/_FORM1_Eric.ash...cement&FileID=340031

By Pooja Thakur

(Bloomberg) -- Blackstone Group LP’s Stephen Schwarzman, who correctly bet on a U.S. housing recovery, is now making a similar wager on Singapore’s luxury property market.

Singapore’s success in using administrative measures to cool its real estate market -- luxury prices have fallen about

20 percent in the past two years while Hong Kong’s have kept rising -- means the restrictions are likely to get lifted, the Blackstone chairman said last week. His firm has been investing in high-end developments over the past four months.

Property has become Blackstone’s biggest profit driver as record-low interest rates and a U.S. economic recovery pushed prices higher. With Singapore poised to hold elections in the next two years, Schwarzman’s call on the luxury segment is a timely one, property analysts said.

“Historically, the government wants to please people before elections,” said Alice Tan, Singapore-based head of research and consultancy at Knight Frank LLP. “They would not want to be seen as being too punitive, especially for an area like property, which Singaporeans like to own as an asset class.”

Blackstone, the world’s biggest private-equity fund, bought a 10-story apartment block and another 18 units in Singapore’s prime residential district since December. A group of Singapore investors in January bought 16 units at 111 Emerald Hill, a condominium project off the Orchard Road shopping strip.



Price Swoon



Starting in 2009, Singapore officials moved to stem a surge in the property market that was fueling discontent in the city- state of 5.5 million people. The highest taxes of as much as 15 percent of the purchase price were imposed on foreigners buying property in the island city.

As those measures took effect, prices of luxury homes -- defined as more than 1,500 square foot in size and costing above

S$2,400 ($1,744) per square foot -- have dropped at least 20 percent since the start of 2013, the Real Estate Developers’

Association of Singapore estimates. Knight Frank has lately been fielding inquiries from funds and high-net-worth investors keen to purchase as developers with unsold stock are willing to cut prices, she said, adding that prices of prime units could rise 5 percent to 8 percent over the next three years.

The curbs “led to big drops in the value of certain properties and we bought after the decline happened -- quite recently actually, within the last year -- and we believe over time those restrictions will be terminated,” Schwarzman said on March 28 in an interview on the sidelines of the Boao Forum for Asia in Hainan, China.



Blackstone Bargain



Blackstone paid about S$164 million for the 34-unit block at 21 Anderson, within a short distance from Orchard Road, and

S$83 million for the 18 units at Paterson Suites, a person familiar with the transactions said in February. Paterson Suites is a five-minute drive to Orchard and 10 minutes away from the office district.

“The smart money has started to come back,” said Donald Han, Singapore-based managing director at real estate broker Chestertons. “We are at rock bottom prices on the luxury housing market.”

The U.S. buyout giant is getting a bargain even after paying the extra stamp duty imposed on foreigners in 2011, said Alan Cheong, a director at property broker Savills Plc. It paid about S$2,000 per square foot based on the acquisition price, Cheong estimated.

“If you look at luxury segment prices, any transaction done below S$2,000 per square foot is a steal even if you have to pay the extra 15 percent stamp duty,” said Singapore-based Cheong. “Prime London property is going for S$3,500 per square foot.”



Monitoring Market



In the last decade, the average price of luxury homes in Singapore has been more than S$2,000, Cheong said. Average luxury home prices on Hong Kong Island, the most expensive of the city’s three territories, were at least HK$17,097 a square foot, or S$3,031, last year.

A representative for Blackstone declined to comment on the prices it paid.

While property restrictions have dented demand for high-end housing, the city-state retained its ranking as the most expensive city to buy a luxury home after Hong Kong in Asia, according to a 2015 Knight Frank wealth report.

Finance Minister Tharman Shanmugaratnam said in his budget speech on Feb. 23 that the government will continue to monitor the property market and adjust measures when necessary.



‘Deep Value’



Singapore is home to the most millionaires per capita in Asia, according to a study by the Boston Consulting Group last year. Globally, only Qatar and Switzerland have higher millionaire density, the report showed.

Blackstone is moving to capitalize on that wealth. The firm has also entered into a deal with the country’s second-largest developer, City Developments Ltd., to take part in a financing for a luxury hotel, retail and residential development on Sentosa island. The deal would give Blackstone a fixed 5 percent coupon for five years and rights to any proceeds from the sale of the residential units.

“Blackstone seems to look for distressed assets and deep value,” said Vikrant Pandey, an analyst with UOB Kay-Hian Pte in Singapore. “In the U.S. it lapped up mass market apartments for their rental yields and deep value. In Singapore the luxury segment is offering deep value compared to mass market.”

The sharp drop in units sold in May suggests ongoing dampening home-buying
sentiment, which could prompt the government towards demand-side policy easing
after scaling back on supply. We remain OVERWEIGHT on the property sector as
expectations of demand-side policy easing lifts the depressed developers’ valuations.
Wing Tai and CapitaLand are our top picks. -- Uob Kayhian

SING HOLDINGS is slowly accumulated by the Lee insiders. I hope they plan to privatise the company and give us -- whose patience has been stretched -- a decent offer of , say , 50/50 cents. I don't think the Lees have been buying just to add to their stake and nothing beyond that. Surely their grand plan is to privatise the company at a good price while still giving Minorities a good premium over the market trading prices.
Wat do you guys think?

SINGAPORE: The moribund housing market may have set off a chorus of voices calling for the property cooling measures to be relaxed, but Monetary Authority of Singapore (MAS) managing director Ravi Menon said it is premature to do so as the price correction has been modest, putting paid to hopes among developers and homeowners of a market rebound.

“Property prices have softened somewhat, but like I said last year, in the context of the price increase that had occurred - 60 per cent over three years - the softening we have seen is really not all that much. So, it’s still premature to consider removing any of the cooling measures that are in place,” Mr Menon said on Monday (Jul 20) at the media briefing to release the central bank’s annual report.

www.channelnewsasia.com/news/singapore/t...999556.html?cid=fbsg