Singapore Press Holdings (SPH)

[KopiKat]

The piece of land that SPH just bought, I doubt that it'll end up being a Jurong Point. More like a Pioneer Mall (since we're on the analogy) if you ask me. Sengkang's already served by a larger suburban mall- Compass Point.

Since SPH's bid for the Fernvale site implied a BE cost of 2400-2600 psf, presumably they would jump to put in a bid for this better located one, that was just put on sale today?

SINGAPORE: Compass Point Shopping Centre is up for sale by public tender.
21 March 2012 1538 hrs (SST)

Sale manager CBRE says it "anticipates that the successful tender price could be in excess of $645 million". This works out to approximately $2,393 per square foot on the existing net lettable area and a net yield of about 4.5 per cent based on the estimated net operating income of almost $29 million.

The current gross rent is about $11.71 per square foot per month.

http://www.channelnewsasia.com/stories/s...52/1/.html

OMG! I read the same news but it didn't register in my head that this is a perfect opportunity for SPH to do yet another Market Setting Bid! I better note down the Tender Close date (3 May 2012) to make sure I'm not holding too many lots of SPH on that date, in case they really do that and market decides to punish them yet again!

At this point, SPH share price is moving according to script (I watch the same movie over and over again) and slowly creeping towards $3.9x as the next mid-year reporting approaches (was 13-Apr last year). DPS should be 7ct like past few years (only once in FY08 was 8ct). But, this time round, with the market in a bullish mood, the price rise may be a case of 'A rising tide lifts all boats'

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11 bucks is on the low side isnt it? man i hope someone good buys them and develops it well.

btw who owns seng kang mall the company?

Found something from 2002, not sure still valid. If valid, I'm surprised it's not being offered to FCT or perhaps they're going to use the winning tender as a base and then FCT has the right of 1st refusal?

Fraser and Neave Group announces securitisation of Compass Point Shopping Centre

SINGAPORE - 12 November 2002 - Mainboard-listed Fraser and Neave Limited (F&N) announced today that it will be securitising its latest retail property, Compass Point Shopping Centre (Compass Point), as part of its overall plan to re-deploy assets to higher yielding activities, thereby enhancing shareholder value.

Its wholly-owned subsidiary, Nasidon Investments Pte Ltd, has granted options to purchase the strata title units in Compass Point to subsidiaries of Sengkang Mall Ltd (SML), a special purpose vehicle set up to raise funds by way of an asset securitisation through the issue of S$335 million in principal amount of bonds; comprising S$201m in Senior Bonds and S$134m in Junior Bonds (with attached preference shares). The coupons for the 10-year Senior Bonds and Junior Bonds are 4.88% p.a. and 8% p.a. respectively. The Senior Bonds rank ahead of the Junior Bonds in terms of principal and coupon payments. Approval-in-principle has been obtained from the Singapore Exchange Securities Trading Limited, for the listing of the securities.

The issue of the bonds and the preference shares are lead-managed by The Development Bank of Singapore Ltd and Oversea-Chinese Banking Corporation Limited.

F&N, through its wholly-owned subsidiary, Centrepoint Properties Ltd (CPL), intends to purchase approximately 45% of the Junior Bonds to be issued. The balance of the Junior Bonds and the entire amount of the Senior Bonds to be issued are expected to be purchased by institutional and sophisticated investors.

Compass Point, which has been in operation since August 2002, is spread out over four storeys and a basement with a net lettable area of 269,546 square feet. It will continue to be managed by a wholly-owned subsidiary of F&N under a property management agreement following the securitisation.

Said F&N's Managing Director, Dr Han Cheng Fong, "One of our Group's foremost priorities is to improve asset productivity by managing reallocation of resources from lower to higher yielding activities, and at the same time placing greater emphasis on asset-light, fee-based businesses.

The Compass Point transaction is in line with this strategy of realising development gains at an opportune time whilst retaining management of the retail properties. In the past, we developed and held retail properties for rental returns as well as management fees. We will structure the realisation of assets to maximise value for our shareholders and time these to coincide with the Group's investment opportunities."

Mr Jeffrey Heng, Chief Executive Officer of CPL, said that CPL's focus would be to build on its core competency in retail mall management and to consolidate its pole position as shopping centre developers and managers with more than 1,400,000 square feet of prime retail space presently under management. "By concentrating on our retail management concept under the Malls of Centrepoint brand name, we believe that we can create a new paradigm in terms of retail mall management of owned shopping centres as well as those belonging to third parties.

At the same time, we will be able to use this opportunity to leverage upon our strengths in mall management to further consolidate CPL's position as a key property player in this region," he said. "The fact that Compass Point is sold at S$1,243 psf of net lettable area demonstrates the property's locational strength and also the confidence in Centrepoint's retail management concept."

[yeokiwi]

11 bucks is on the low side isnt it? man i hope someone good buys them and develops it well.

btw who owns seng kang mall the company?

Was it F&N?

Anyway, Compasspoint will have a serious competitor in a few years time when WaterTown at Punggol is up.

Situated at the heart of Singapore’s first eco-town, the 992-unit development comprises Suites, SOHO Apartments, Sky Patios, and Residences. It also features Waterway Point, a retail and lifestyle hub with close to 370,000 sq ft of net lettable retail space, al fresco waterfront dining and a Shaw Theatres IMAX cinema.

It is at least 1/3 bigger than Compasspoint.

[Drizzt]

wah thats far. i was hoping i dont have to travel far haha.

[KopiKat]

Anyway, Compasspoint will have a serious competitor in a few years time when WaterTown at Punggol is up.

wah thats far. i was hoping i dont have to travel far haha.

Both of you are right! It really depends on how mobile you are. If you are very mobile, even malls in JB is considered a threat as many things are cheaper there (some may even go to the extent of 'smuggling' back an iPad to avoid paying GST - so ya, can be 7% cheaper if you don't get caught).

But, if you not as mobile (either lazy or tied down by chores like looking after young kids / housework as no maid), then that's where the suburban malls comes in. Ya, the convenience, especially if it's just ~5mins walk away, is like a godsend. You can find almost anything you need urgently within one mall!

So, with many people like 'Drizzt' and me around in any neighbourhood (we're likely the majority), I doubt that any suburban mall is going to become deserted anytime soon, just because a new mega mall had opened a few km away.

[swakoo]

Found something from 2002, not sure still valid. If valid, I'm surprised it's not being offered to FCT or perhaps they're going to use the winning tender as a base and then FCT has the right of 1st refusal?

CompassPoint has never been a pipeline ROFR asset for FCT. FCT is trading at implied yield of 6+% so guess it can't afford to pay a cap rate of 4.5% or lower that is being asked for.

Anyway, Compasspoint will have a serious competitor in a few years time when WaterTown at Punggol is up.

WaterWay Point is half owned by F&N too, and is 1 mrt stop away. Together with CompassPoint, NLA is about 500+K sq ft much less than JP's 750K sq ft. (All 3 malls are very well located next to mrt and bus interchange). With the growing population at Punggol/Sengkang reckon there should be plenty of room for both plus throw in the Fernvale site of around 283K sq ft?

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Current cap rates for a mall of CompassPoint's quality is around 5.5%. If they can achieve a sale at 4.5% or lower, maybe this will result in a upwards rerating of JP, J8 and Tampines mall?

[brattzz]

expecting interim dividends of 7 cts soon..

[KopiKat]

expecting interim dividends of 7 cts soon..

Q212 Results will be out on 13-Apr.

Q112 EPS = 6ct and looking at EPS since FY06, Q2 EPS is usually lower or at best, same as Q1. So, it should be 5-6ct. I guess EPS = 6ct (read a report recently that Advertising demand is strong due to Property Developers scrambling to sell their Properties asap).

DPS for 1H = 7ct since FY06 (except for 1H08 = 8ct). So, likely DPS = 7ct.

[CityFarmer]

I am very interest to know the impact of the recent promotion of digital version of Zaobao and ST. Hopefully i can get more insight from the 2Q report.

I believe the impact on total revenue on this 2Q result will be minimum, i am more looking into how things get started and hopefully pick up some good indicator on trend..

Lastly i am also do feel likely 7cts dividend.

[Drizzt]

not gonna make much difference. more advertisement revenue?

[CityFarmer]

The points that i am looking at for the digital version of Zaobao and ST

1. Will this increase readership? It may increase new subscriber in singapore, new subscriber from oversea since hardcopy is difficult for oversea reader to subscribe. It translate to more revenue (subscribtion + advertisement rate)

2. Will it impact on the existing margin for newspaper biz?

3. The last one is just personal interest, it may change the way how the newspaper biz evolve... back to growth path due to the change? Probably i am too optimistic

I am vested