Sing Holdings

[money]

Asset Acquisitions and Disposals::Acquisition of Travelodge Docklands in Melbourne, Australia
http://infopub.sgx.com/Apps?A=COW_CorpAn...a9c2b0ae93

Well finally Sing Holdings has started finding use for the huge war chest it is in the process of accumulating. However did not see any information on the returns this investment will provide. It is only once we have some more information that a better idea can be gotten on the attractiveness of this move!

you are so right! finally management is going to provide us with decent recurring income, honestly, i cant stand the cash hoard which is earning less than 1% when it is kept with the bank. Haha got to go to the next AGM to praise them

[Jacmar]

Well finally Sing Holdings has started finding use for the huge war chest it is in the process of accumulating. However did not see any information on the returns this investment will provide. It is only once we have some more information that a better idea can be gotten on the attractiveness of this move!

you are so right! finally management is going to provide us with decent recurring income, honestly, i cant stand the cash hoard which is earning less than 1% when it is kept with the bank. Haha got to go to the next AGM to praise them

Are you sure or not, go and praise  them?? If hotel business is so good then you should be investing in Stamfordland. SL has been struggling in the last few yrs with stock price hitting the lows. With SL you got property development and also understated hotel assets bought on the cheap in the past. SH purchase is at fully valued mkt price. You need to go to the AGM to question whether SH will get your returns and the ROI on the purchase.

Problem with SH is that every time they made money on property investment they go and spend it and OPMI don't get to enjoy the fruits of it. Classic case of value trap stock.

DYODD

[bargainhunter]

the purchase is a pretty new freehold hotel at a good location in melbourne. i would expect the yield to be pretty low at the start. more for longer term defensiveness.

[Boon]

The owner of Travelodge Docklands (rated 3.5 star) is M&L Hospitality Trust controlled by Michael Kum, who, according to the following report, paid AUD 54 million for the hotel back in 2011.
 
http://www.theaustralian.com.au/business...6811557449
 
Earlier this year, it was also reported that Kum had scrapped the sale of the bulk of its M&L Hospitality hotels portfolio in AUS/NZ which includes Travelodge Docklands. 
 
Singapore’s Kum family scraps M&L Hospitality hotels sale
http://www.theaustralian.com.au/business...3625787d24
_______________________________________________________________________________________________________________________________________

[bargainhunter]

The owner of Travelodge Docklands (rated 3.5 star) is M&L Hospitality Trust controlled by Michael Kum, who, according to the following report, paid AUD 54 million for the hotel back in 2011.
 
http://www.theaustralian.com.au/business...6811557449
 
Earlier this year, it was also reported that Kum had scrapped the sale of the bulk of its M&L Hospitality hotels portfolio in AUS/NZ which includes Travelodge Docklands. 
 
Singapore’s Kum family scraps M&L Hospitality hotels sale
http://www.theaustralian.com.au/business...3625787d24
_______________________________________________________________________________________________________________________________________

so the sgd gross profit is around 114m-72m = 42m for Kum family after accounting for exchange rate differences.

[bargainhunter]

http://infopub.sgx.com/FileOpen/_FORM1_2...eID=426191

Lee Sze Hao bought 400,200 shares at 0.32 under his own name and 90,000 under FH Lee Holdings Pte Ltd just before the 15 day blackout period ahead of Q3 results.

Given their habit of announcing results on a Friday, results could be announced on 11th Nov.

The purchase is also the first in slightly over a year.

[thinleyw]

I purchased the stock about a month ago and sold after the pop. The acquisition in Melbourne made me very uncomfortable. From what I gather, it seems that there are concerns of overheating in the property market (http://www.reuters.com/article/us-austra...SKCN0XC056). Looks like the Central Bank is going to what they can to keep prices in check. Not sure what Sing's management is thinking.

[bargainhunter]

I purchased the stock about a month ago and sold after the pop.  The acquisition in Melbourne made me very uncomfortable.  From what I gather, it seems that there are concerns of overheating in the property market (http://www.reuters.com/article/us-austra...SKCN0XC056).   Looks like the Central Bank is going to what they can to keep prices in check.  Not sure what Sing's management is thinking.

but that's a hotel rather than outright residential property.  They are probably thinking along the line of stable rent (at this point I would wild guess maybe expect a pathetic rent of S$2m per annum net translating to EPS of 0.5c) but it may be better than I think depending on how much they actually borrow for the purchase.

[thinleyw]

I purchased the stock about a month ago and sold after the pop.  The acquisition in Melbourne made me very uncomfortable.  From what I gather, it seems that there are concerns of overheating in the property market (http://www.reuters.com/article/us-austra...SKCN0XC056).   Looks like the Central Bank is going to what they can to keep prices in check.  Not sure what Sing's management is thinking.

but that's a hotel rather than outright residential property.  They are probably thinking along the line of stable rent (at this point I would wild guess maybe expect a pathetic rent of S$2m per annum net translating to EPS of 0.5c) but it may be better than I think depending on how much they actually borrow for the purchase.

RBA "noted foreign investors accounted for a record 40 percent of all purchases in the commercial property secotr in 2015, pushing up prices and compressing yields.

Chinese investors had been particularly aggressive, both in the housing and commercial sectors."


Wouldn't be surprised if they write down the hotel in the future.  Sad b/c I really liked the stock prior to this acquisition.

[bargainhunter]

I purchased the stock about a month ago and sold after the pop.  The acquisition in Melbourne made me very uncomfortable.  From what I gather, it seems that there are concerns of overheating in the property market (http://www.reuters.com/article/us-austra...SKCN0XC056).   Looks like the Central Bank is going to what they can to keep prices in check.  Not sure what Sing's management is thinking.

but that's a hotel rather than outright residential property.  They are probably thinking along the line of stable rent (at this point I would wild guess maybe expect a pathetic rent of S$2m per annum net translating to EPS of 0.5c) but it may be better than I think depending on how much they actually borrow for the purchase.

RBA "noted foreign investors accounted for a record 40 percent of all purchases in the commercial property secotr in 2015, pushing up prices and compressing yields.

Chinese investors had been particularly aggressive, both in the housing and commercial sectors."


Wouldn't be surprised if they write down the hotel in the future.  Sad b/c I really liked the stock prior to this acquisition.

Shouldn't we give them the benefit of doubt?  They have afterall been rather careful and conservative in recent years.  Surely they are not returning to their wild days of overleveraging and overpaying?