Hiap Hoe

More
22 Mar 2017 14:03 #23679 by Ogre
Ogre replied the topic: Hiap Hoe
Four Points by Sheraton to open on 28 Mar 17. www.starwoodhotels.com/fourpoints/proper...=4146&language=en_US

Please Log in to join the conversation.

More
29 Apr 2017 10:59 #23803 by Ogre
Ogre replied the topic: Hiap Hoe
Updates from Hiap Hoe's AGM on 28 Apr 17.

1) The general sentiment from the shareholders was that the dividend of $0.01 was too low. The Chairman noted this and mentioned that he would try to do something next period.

2) In response to shareholder query, the Chairman updated that the interested party transaction of Waterscape was done at the market valuation of between $1300 - $1400 psf.

3) In response to shareholder query, the Chairman mentioned that he is open to selling the Four Points hotel in Melbourne as well as the other investment properties in Singapore if the right opportunity arises. He added that he is not ruling out the option of forming a REIT with JV partners.

4) The Chairman also shared that there were no plans for further constructions plans in the next few years, citing increasing costs and lack of good opportunities.

In my opinion, Hiap Hoe still remains a possibility for privatisation in the next few years. The strategy of the Chairman appears to be slowing expansion of the group and reducing its long-term debt.

Please Log in to join the conversation.

More
23 Oct 2017 09:25 #24100 by Joes
Joes replied the topic: Hiap Hoe

The strategy of the Chairman appears to be slowing expansion of the group and reducing its long-term debt.


Hiap Hoe gonna miss out on the Singapore prop market recovery?

Please Log in to join the conversation.

More
23 Oct 2017 21:08 #24101 by Ogre
Ogre replied the topic: Hiap Hoe
Unlike Lian Beng, Oxley or Chip Eng Seng, Hiap Hoe is not undertaking any more projects. It has transformed into an investment holding company.

At least he kept his promise to look into paying additional dividend to the shareholders.

Please Log in to join the conversation.

More
25 Oct 2017 19:32 #24108 by Ogre
Ogre replied the topic: Hiap Hoe
www.globalconstructionreview.com/news/th...s-leaning-tower-co/​

Does this mean that Marina Tower is completed? Wonder why there is no official announcement.

Please Log in to join the conversation.

More
04 Nov 2017 21:13 #24128 by Ogre
Ogre replied the topic: Hiap Hoe
Hiap Hoe (5JK:SI) recently disclosed that it has entered into a conditional sale and purchase agreement with AFP Land Limited, a subsidiary of Sinarmas Land (A26:SI),  to acquire Golden Bay Realty (Private) Limited, which is the holding company for 59 strata lots at Orchard Towers with an aggregate strata floor area of 128,069 sq ft. The purchase comprises 21 retail units and 38 office units with strata area of 7,449 sq ft and 120,620 sq ft respectively, with a net leasable area of approximately 89,000 sq ft. The actual purchase price of the company was not disclosed, but it was mentioned that it would be based on the net asset value after taking into account the new property valuation of S$162 million. Of note, the units, making up approximately 21% of the strata interest, had been on the market since Jan 2013, with an asking price of S$190 million ( See Article ).

Completed between 1973 - 1975, Orchard Towers is situated at 400 Orchard Road, Singapore 238875 and 1 Claymore Drive, Singapore 229594. Orchard Towers consists of one commercial mixed development block (4 levels of retail space and 20 levels of office space) and another block comprising 58 residential units. The property has an existing strata area of 595,066 sq ft over 25 floors and 361 carpark lots. Based on its 2016 annual report, Hiap Hoe owns B1-01/40 of Orchard Towers which is approximately 7,900 square feet.

The disclosure mentioned that the agreed value of the Orchard Towers properties is S$162 million. This translates to S$1,820 psf for freehold commercial real estate in the prime Orchard Road belt. This price appears to be very low, considering that the past transactions for the office and retail units in the past year were approximately S$1800 psf and S$3500-S$5000 psf respectively.

Based on its Financial Statement (for the period ended 31 Dec 2016) filed with ACRA, Golden Bay Realty's total assets on its book was S$382 million and total liabilities was S$101 million. This translates to a net asset value of S$281 million. The non-current assets reported was S$205 million, which I assume to be the book value of the Orchard Towers properties since no other assets were mentioned in the disclosure. Hence, I estimate the purchase price to be around S$238 million.

I opine that this transaction will have a positive effect on Hiap Hoe in the intermediate-term based on two factors: 1) the agreed value of the properties appear to be greatly undervalued, and 2) there is good redevelopment potential for Orchard Towers.

Please Log in to join the conversation.

Share Prices

Counter NameLastChange
AEM Holdings3.3000.020
Alliance Mineral0.360-0.005
AusGroup0.0400.001
Avi-Tech Electronics0.480-0.010
Best World Int.1.230-
China Sunsine0.940-
CWG International0.147-0.006
DISA Limited0.013-
Dutech Holdings0.350-
Federal Int. (2000)0.430-
Food Empire0.695-0.005
Geo Energy0.2700.005
Golden Energy0.415-0.005
GSS Energy0.168-0.002
Heeton Holdings0.550-0.005
ISOTeam0.3600.005
KSH Holdings0.830-0.005
Lian Beng Group0.7750.005
Miyoshi0.074-0.001
Nordic Group0.535-0.020
Oxley Holdings0.665-0.005
REX International0.054-
Riverstone1.050-0.010
Roxy-Pacific0.540-
Serial System0.170-0.002
Sing Holdings0.440-0.020
Sino Grandness0.215-0.005
Straco Corp.0.855-0.010
Sunningdale Tech1.960-
Sunpower Group0.6000.025
The Trendlines0.148-0.004
Tiong Seng0.375-0.010
Trek 2000 Int.0.2800.005
Uni-Asia Group1.2700.010
XMH Holdings0.250-
Yangzijiang Shipbldg1.7100.020

NextInsight RSS

rss_2 NextInsight - Latest News

Online Now

We have 657 guests and no members online