Sumer,
some more that $1072 psfppr for that Robinson Rd hotel site is ONLY for 60-years lease
Hiap Hoe's $172 psfppr is for a full 99-years lease !!
Toa Payoh Entertainment Centre at Lor 6, Toa Payoh,
is actually pretty close to HiapHoe's Balestier hotel site (only separated by the PIE ! )
it's v. small site, landarea=14,988 sqft only, GFA=44,266 sqft
so Hersing pricetage of $66m = $1491 psfGFA and it got only 58-yrs lease remaining !!
Superboring, super-illiquid & also super-undervalued
except for one in their midst, the neighbourhoods all gunning for some actions...
BT: 2011-Mar-16: PoMo=Lend Lease, partner selling PoMo at Selegie for $255m,
=> GFA=234,996, NLA=182,060 or $1226 psfGFA or $1582 psfnla
BT: 2011-Feb-10: (Peace Centre+Peace Mansion) Peace Centre complex is up for en bloc sale again, asking for $700m
=> that's $1355 psfppr (incl $150m for DP)
BT: 2010-Aug-18: Selegie Centre site up for tender with an indicative price tag of $110 to $125 million
[hr]
[sumer 06-01-2011]:
Today's news that the hotel site at Ogilvy Centre, Robinson Road, has been sold for $1,072 psf ppr highlights how land prices for hotels have surged over the past year, and allows us to dig up and recall how some companies which bought such land earlier are sitting on pots of gold.
One example is Hiap Hoe/Superbowl. Their joint venture clinched its big hotel site at Ah Hood Road (Zhongshan Park) for a pittance in comparison, deep in the liquidity crisis of 2008, when no one dares to bid for any land.
Here's a report from the press at that time:
"The winning bid from HH Properties, a joint-venture between Hiap Hoe and sister company SuperBowl Holdings, was S$73.3 million or S$172.09 per square foot per plot ratio – significantly below the S$350-S$470 psf ppr that analysts indicated for the site when it was launched in late March."
Hiap Hoe and Superbowl paid a mere $73.3m for the huge site which it is now constructing nearly 1,000 hotel rooms, an office block and a shopping centre! The price of $1,072 psf ppr paid by the winner at Ogilvy Centre is 6.3 times the price paid for by Hiap Hoe and Superbowl! And that site can build 200 hotel rooms compared to 1,000 at Hiap Hoe/Superbowl's site.
By my estimate, Hiap Hoe and Superbowl are comfortably sitting on a $200m paper profit on its Zhongshan Park site. For Hiap Hoe, its 50% share works out to about 21 cts of "unrealised" profit per share, while for Superbowl, it's even higher, at about 30.7 cts per share!