Wing Tai Holdings

[a74henry]

Thanks for sharing.

At $300 per sq ft for the bungalows in year 2001. Lum Chang would have registered capital gains if it held them until today.

In year 2001, Lum Chang seems to have got a bad deal to record a loss of $25.24 million from the deal, while SPH expects the transaction, to be completed in August, to result in a profit of about $23 million.

[greengiraffe]

Typical towkay style - no ultimate price, no sale. He doesnt need the money anyway...

$300m too pricey for bungalow with pool, tennis court?

Experts say it could be on market for a while despite rarity of 85,000 sq ft plot

Published on Apr 11, 2013


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The asking price for the Nassim Road bungalow is about 50 per cent above the record per sq ft price in the area, say experts. -- ST PHOTO: MARK CHEONG

By Esther Teo Property Correspondent

THE eye-popping asking price of up to $300 million for a bungalow in the posh Nassim Road enclave has set tongues wagging.

But experts doubt a buyer can easily be found willing to part with such a vast sum for the large 85,000 sq ft plot and lavish home that comes with a tennis court and swimming pool.

A sloping driveway leads to the two-storey house built on elevated ground. The bungalow sits in the centre of the plot with a large grassy field occupying about a third of the site.

The asking figure, if secured, would smash previous records.

And as well as the sky-high total figure, the asking price is also about 50 per cent above the record per sq ft (psf) price in the area, say industry watchers.

They suspect it could be on the market for some time despite the rarity of such a large plum site.

The owner, developer Wing Tai Holdings' chairman Cheng Wai Keung has held the home since the mid-1980s. He is asking for $250 million to $300 million - or $2,947 psf to $3,536 psf of land area.

This psf price dwarfs the most expensive good-class bungalow sold to date - a 15,640 sq ft Leedon Park property for $2,110 psf.

It would also easily eclipse the priciest home ever sold on the Nassim Road stretch - a $47.8 million sale of a 23,922 sq ft site that worked out to $2,000 psf. And it would easily become Singapore's most expensive home ever sold.

The tenant, who moved out yesterday, a lawyer, is believed to be the Honorary Consul to Singapore for Barbados.

A marketing agent specialising in good-class bungalows said the sellers are "unlikely to get the price they are asking for".

"The market is not great now (with the cooling measures). Why would a buyer want to pay so much more?" he added.

And even if an investor wanted to carve up the plot into five smaller parcels, he might have to wait four years before selling the units or pay a hefty seller's stamp duty of up to 16 per cent.

But Mr Karamjit Singh, head of investments and residential at Jones Lang LaSalle (JLL), the sole marketing agent for the site, said the owners had received unsolicited offers for the plot. He did not disclose the offers.

"There are buyers who have told us they have been waiting for the right plot with the Nassim Road address to come on the market. Such is the unique appeal of Nassim Road," he said.

However, it is unclear why Mr Cheng is selling the house now or why he is not developing the plot.

There have been six good-class bungalow deals inked in areas such as Yarwood Avenue, Windsor Park Hill and Camden Park so far this year, CBRE said. These six transactions total $136 million.

CBRE's director of luxury homes, Mr Douglas Wong, said first-quarter volumes were thin with buyers not much interested in negotiating.

But interest has picked up since last month with quite a few inquiries, he added.

Some investors have made handsome profits by flipping good-class bungalows, the highest-end homes here that are typically at least 15,000 sq ft in size. A 24,187 sq ft bungalow along Nassim Road sold in April 2010 for $43.53 million netted the seller a profit of $19.35 million after he paid $24.18 million in 2007.

esthert@sph.com.sg

[kichialo]

loans in a subsidiary are consolidated, those would appear in the balance sheet of the group.

but loans in a joint-ventures or associates are not consolidated, they are shown in one line of non-current asset only, so it is difficult to know how much debt the joint-ventures or associates have from the group balance sheet. example such that if a joint-venture has equity of S$2(50-50 joint venture), but loans from financial institutions of $200 million, it still appears as $1 in non-current asset in the group balance sheet. it certainly does not reflect the real liabilities of the group.

to find out more about the leverage in the joint-ventures or associates level, I would look into the notes to financial statements in annual report. In the example of Wing Tai Holidngs from AR 2012, as such,

for associates, item 18, "investment in an associated company",

it showed in 2012, the associates(not adjusted for the proportionate ownership interest held by the Group) have assets of 3,646,401,000 and liabilities of 1,390,107,000. Since Wing Tai HK is the main associates, and the ownership is 33.6%, we can estimate how much assets/liabilities should be reflected in the balance sheet of Wing Tai, rather than one line of equity accounting.

the same for joint-ventures, item 19 "investments in joint venture companies",

it showed in 2012, joint-ventures(adjusted for the proportionate ownership interest held by the Group) has assets of 790,466,000, liabilities of 629,034,000. we can easily understand the high leverage in the joint ventures level(equity of 161 million vs liabilities of 629 million)

It is also important to know how much liabilities from the associates and joint ventures are from the company. in AR 2012, item 17 "trade and other receivables – non-current", we can know that among the liabilities of the joint ventures, around 200 million is from Wing Tai. these 200 million can cancel each other in the group balance sheet by remove the 200 million receivables from the assets and 200 million liabilities from the joint ventures to better reflect the capital structure of Wing Tai Holdings.

Item 18 ends off saying "the carrying value of the quoted equity shares is higher than the market value. The directors consider the carrying value of investment in the associated company appropriate, after evaluated various qualitative and quantitative factors..."

Means book amount more than actual market value. Is this not a concern?

P.S. I am not accounting trained.

[freedom]

Item 18 ends off saying "the carrying value of the quoted equity shares is higher than the market value. The directors consider the carrying value of investment in the associated company appropriate, after evaluated various qualitative and quantitative factors..."

Means book amount more than actual market value. Is this not a concern?

P.S. I am not accounting trained.

depends on how you want to look at it.

Wing Tai HK is a very illiquid coutner. There is not exactly a market for price discovery.

Whether you as an investor believe the valuation of the management of the company is a different matter from how the management wants to present the number in their report.

[smallcaps]

Item 18 ends off saying "the carrying value of the quoted equity shares is higher than the market value. The directors consider the carrying value of investment in the associated company appropriate, after evaluated various qualitative and quantitative factors..."

Means book amount more than actual market value. Is this not a concern?

P.S. I am not accounting trained.

depends on how you want to look at it.

Wing Tai HK is a very illiquid coutner. There is not exactly a market for price discovery.

Whether you as an investor believe the valuation of the management of the company is a different matter from how the management wants to present the number in their report.

Maybe it's an opportunity as opposed to a concern?

[kichialo]

Item 18 ends off saying "the carrying value of the quoted equity shares is higher than the market value. The directors consider the carrying value of investment in the associated company appropriate, after evaluated various qualitative and quantitative factors..."

Means book amount more than actual market value. Is this not a concern?

P.S. I am not accounting trained.

depends on how you want to look at it.

Wing Tai HK is a very illiquid coutner. There is not exactly a market for price discovery.

Whether you as an investor believe the valuation of the management of the company is a different matter from how the management wants to present the number in their report.

Thanks Freedom.

[yanziyang]

Within the month of March,Wing Tai (WINGT SP, Buy) sold 9 units at Foresque Residences.

From:
http://sbr.com.sg/residential-property/n...thin-march

[BlueKelah]

is that good or bad for wing tai??

[smallcaps]

Within the month of March,Wing Tai (WINGT SP, Buy) sold 9 units at Foresque Residences.

From:
http://sbr.com.sg/residential-property/n...thin-march

Means still got 5.8% (29 units) unsold. Can slowly sell until TOP next year, at ever increasing prices...

[ngcheeki]

3Q FY2013 result is out this evening. The following is a short summary of the result:
Revenue('000): $1,024,703.00 +142%
Net Profit attributable to shareholders('000): $255,299.00 +151%
EPS: $0.3258
NAV: $3.1001
Net Gearing maintain at: 0.1656
Price to Book based on closing price of S$2.3: 0.7419

"Revenue from development properties for the current period was mainly attributable to the progressive sales
recognized from Foresque Residences and L’VIV, the additional units sold in Helios Residences and Belle
Vue Residences in Singapore as well as the contribution from Verticas Residences in Malaysia. In the
current period, Verticas Residences obtained its Temporary Occupation Permit and the revenue for all the
units sold as at the end of the current period was fully recognized."

Forward statement:
IIn the coming months, depending on market conditions, the Group plans to market The Tembusu project.
This is a freehold development of 337 residential units, located at 105/107 Tampines Road, near Kovan
MRT station.

http://info.sgx.com/webcoranncatth.nsf/V...A00344B2D/$file/AnnouncementMar13.pdf?openelement

3QFY2013 EPS of $0.3258 has already exceeded FY2012 of $0.3091. Dividend fo FY2013 should be at least 7 cents!!

Vested