ValueBuddies.com : Value Investing Forum - Singapore, Hong Kong, U.S.

Is today's news in ST about property in Singapore, possitive to Metro ?

(15-08-2012, 11:55 PM)GFG Wrote: [ -> ]

(15-08-2012, 10:33 PM)pianist Wrote: [ -> ]

(15-08-2012, 01:45 PM)GFG Wrote: [ -> ]I m still holding onto 100 lots though.
Cash hoard is high while the real estate in china, particularly commercial is weakening
I expect a big purchase this FY, will be worried if there's no majoractivity this yr cos it means management has ran out of ideas and opportunities...

in the last 3-4 quarters property giants esp from hong kong have been sweeping land banks in china. looking at their non-controlling 10-15% JV with Tesco lifespace, it seems like they realli have run out gd ideas...haha
dunno next year AGM still have abalones for us?

u were in chaoyang district last month, then u would have been caught in the storms/flood..plus the police is stepping up on illegal stayers ..is no wonder commercial malls no body..

Actually, I own 9 lots of Tesco as well, bought last yr when it fell substantially due to lower profit the Christmas sales.
I view the collaboration with Tesco favourably. Tesco is looking to expand in China, with flat growth prospects in Europe for the forseeable future. They are similar to Metro, but much larger. Expertise is in retailing and property development. They own several of the properties that their supermarkets are sited on. Metro can ride on the large brand name of Tesco, esp in a competitive market like China.

The other partner in the JV, the China/HK funds, I believe probably contributes significantly in other aspects besides providing funds. Both Tesco and Metro have funds and do not need a third party to provide funds. I believe they include the Chinese funds as a way to sniff out opportunities, as well as provide security.

3Q results were pretty good, and the management has now shown what the cash hoard is for. (Property development in china and the cresent condo project)

http://info.sgx.com/webcoranncatth.nsf/V...3002CE2E9/$file/MHLSaleofPasirPanjang.pdf?openelement

(04-04-2013, 07:59 PM)greengiraffe Wrote: [ -> ]http://info.sgx.com/webcoranncatth.nsf/V...3002CE2E9/$file/MHLSaleofPasirPanjang.pdf?openelement

Thanks for the alert

Some points:
1) huge gain as the warehouse was only recorded as 9.9 million in the books.
Unlike the mall and office towers, these auxiliary properties are not valued yearly so metro may have significant revaluations when disposing the properties
2) I am guessing the warehouse is for the retail segment and it's currently underutilized. Metro will see a greater emphasis on it's property development and management segment
3) sale price is at the valuation price and is probably fair
This is probably a market top for property so I personally think it's good timing

(04-04-2013, 08:53 PM)GFG Wrote: [ -> ]

(04-04-2013, 07:59 PM)greengiraffe Wrote: [ -> ]http://info.sgx.com/webcoranncatth.nsf/V...3002CE2E9/$file/MHLSaleofPasirPanjang.pdf?openelement

Thanks for the alert

Some points:
1) huge gain as the warehouse was only recorded as 9.9 million in the books.
Unlike the mall and office towers, these auxiliary properties are not valued yearly so metro may have significant revaluations when disposing the properties
2) I am guessing the warehouse is for the retail segment and it's currently underutilized. Metro will see a greater emphasis on it's property development and management segment
3) sale price is at the valuation price and is probably fair
This is probably a market top for property so I personally think it's good timing

May be another act to help pay performance bonuses to key personnels that has it tied to Metro's actual performances - I just recalled from previous threads

(04-04-2013, 09:32 PM)greengiraffe Wrote: [ -> ]

(04-04-2013, 08:53 PM)GFG Wrote: [ -> ]

(04-04-2013, 07:59 PM)greengiraffe Wrote: [ -> ]http://info.sgx.com/webcoranncatth.nsf/V...3002CE2E9/$file/MHLSaleofPasirPanjang.pdf?openelement

Thanks for the alert

Some points:
1) huge gain as the warehouse was only recorded as 9.9 million in the books.
Unlike the mall and office towers, these auxiliary properties are not valued yearly so metro may have significant revaluations when disposing the properties
2) I am guessing the warehouse is for the retail segment and it's currently underutilized. Metro will see a greater emphasis on it's property development and management segment
3) sale price is at the valuation price and is probably fair
This is probably a market top for property so I personally think it's good timing

May be another act to help pay performance bonuses to key personnels that has it tied to Metro's actual performances - I just recalled from previous threads

That's one of the negatives that I've been monitoring - the high pay for JO. But having said that, if he can continue to add value by recycling assets, Metro would still be a good company to invest in.
Although it'd be a fantastic company if management reins in the pay.

(04-04-2013, 08:53 PM)GFG Wrote: [ -> ]2) I am guessing the warehouse is for the retail segment and it's currently underutilized. Metro will see a greater emphasis on it's property development and management segment

The warehouse has been vacant for a number of years. When I first "surveyed" it in 2008, I saw a small security lock and a cardboard "no parking" sign. No security guard, unpainted, and windows very dusty. It is still the same after about 5 years.

Better looking than Hupsteel's Kim Chuan warehouse. At least their Metro logo was clearly visible against the weathered walls.

(30-10-2012, 01:12 PM)valueinvestor Wrote: [ -> ]Is today's news in ST about property in Singapore, possitive to Metro ?

I do not like Metro selling the Freehold Warehouse at Pasir Panjang below the bank valuation. Maybe they saw something in future that this warehouse value will be lower that I did not see.

Still, I do not understand why they would want to sell a freehold property?

(Vested)

(05-04-2013, 07:43 PM)a74henry Wrote: [ -> ]

(30-10-2012, 01:12 PM)valueinvestor Wrote: [ -> ]Is today's news in ST about property in Singapore, possitive to Metro ?

I do not like Metro selling the Freehold Warehouse at Pasir Panjang below the bank valuation. Maybe they saw something in future that this warehouse value will be lower that I did not see.

Still, I do not understand why they would want to sell a freehold property?

(Vested)

Maybe they see a market top in terms of valuation for industrial properties
Or they just want to sell off an underutilized asset to get higher returns
Or they want to free up the cash-flow to channel to their capital intensive projects

Probably a combination of all the above

(05-04-2013, 09:20 PM)GFG Wrote: [ -> ]

(05-04-2013, 07:43 PM)a74henry Wrote: [ -> ]

(30-10-2012, 01:12 PM)valueinvestor Wrote: [ -> ]Is today's news in ST about property in Singapore, possitive to Metro ?

I do not like Metro selling the Freehold Warehouse at Pasir Panjang below the bank valuation. Maybe they saw something in future that this warehouse value will be lower that I did not see.

Still, I do not understand why they would want to sell a freehold property?

(Vested)

Maybe they see a market top in terms of valuation for industrial properties
Or they just want to sell off an underutilized asset to get higher returns
Or they want to free up the cash-flow to channel to their capital intensive projects

Probably a combination of all the above

They got 400m worth of cash as at Dec 2012 so the cash flow possibility is perhaps out.
Yes, I believe they know the market much better than most people including those in this forum.
CDL just sold the neighbouring two plots of freehold land at the same level...
CDL is not daft, right?

---

(05-04-2013, 09:20 PM)GFG Wrote: [ -> ]

(05-04-2013, 07:43 PM)a74henry Wrote: [ -> ]

(30-10-2012, 01:12 PM)valueinvestor Wrote: [ -> ]Is today's news in ST about property in Singapore, possitive to Metro ?

I do not like Metro selling the Freehold Warehouse at Pasir Panjang below the bank valuation. Maybe they saw something in future that this warehouse value will be lower that I did not see.

Still, I do not understand why they would want to sell a freehold property?

(Vested)

Maybe they see a market top in terms of valuation for industrial properties
Or they just want to sell off an underutilized asset to get higher returns
Or they want to free up the cash-flow to channel to their capital intensive projects

Probably a combination of all the above

They got 400m worth of cash as at Dec 2012 so the cash flow possibility is perhaps out.
Yes, I believe they know the market much better than most people including those in this forum.
CDL just sold the neighbouring two plots of freehold land at the same level...
CDL is not daft, right?