Gd day Buddies...
GG see this related party deal till catch no ball... any headsup on the directions appreciated from buddies of any roads...
Thanks In Advanced
GG
(09-11-2015, 09:52 AM)greengiraffe Wrote: [ -> ]Gd day Buddies...
GG see this related party deal till catch no ball... any headsup on the directions appreciated from buddies of any roads...
Thanks In Advanced
GG
Looks like they are pumping in money to the Thai company, and at the same time diluting the shares of the other shareholders in the Thai company.
Probably not a good deal for FCL minorities... paying 32% above NAV, and subscription price of 7.25 (25% premium over price on 1st Oct).
FCL, CIMB maintain ADD:
Frasers Centrepoint Ltd
Another good year
FY15 results largely within expectations; high dividend ■ yield of 5.2%.
■ Good earnings visibility from large S$3.1bn of unrecognized residential billings from
Singapore, Australia and China.
■ Extensive pipeline of new investment property projects to boost rental income base.
■ New Thai strategic investment to broaden foray into Thailand.
■ Maintain Add with a RNAV-based target price of S$2.04.
FY15 results broadly in line, high dividend yield
FCL reported a good set of FY15 results, which came in broadly in line with
expectations. FY15 revenue and PBIT grew 62% and 44% yoy, to S3.56bn and S$1.1bn
respectively, with full-year contributions from FPA, higher residential income from China
and Singapore as well as contributions from new hotels. Consequently, core net profit
rose 16% yoy to S$544m. The group proposed a final DPS of 6.2Scts (total S8.6cts),
translating to a yield of 5.2%.
Good development visibility with S$3.1bn of unrecognized sales
Development earnings visibility is strong with total S$3.1bn of unrecognized unbilled
revenue, largely from Singapore (S$1.2bn), where North Park Residences is c.66% sold.
In addition to 2,950 units released in FY15, FPA will launch a further 3,850 in FY16 to
augments the S$1.5bn of unrecognized residential billings in Australia. Whilst
landbanking in Spore remains challenging due to elevated land cost, FPA boosted its
landbank by another 2,833 units in FY15 to reach a total development pipeline GDV of
S$8.5bn.
Newbuilds to support rental income expansion
Recurrent income accounted for a larger 58% of PBIT, in line with FCL’s 60-70% target.
Growth will continue to be underpinned by the strong rental income base from FPA’s
C&I portfolio and the opening of the 95% pre-leased Waterway Point in Singapore in Jan
16 as well as completion of Frasers Tower, Northpoint City and AEI works at
Centrepoint. The hospitality division should also see total units under management
expanding from present 14,083 units to at least 22,783 keys by 2019.
Strategic investment in Golden Land to broaden Thailand foray
FCL announced a potential strategic investment in Thai-listed Golden Land Property
Development. FCL will pay THB4,971m (S$196m) or THB7.29/share for a 29.5% share
in the enlarged entity. Post restructuring, Golden is expected to have an estimated BV of
THB12,738m. Golden focuses on landed and medium-density housing and mixed-use
commercial and hospitality projects in the Bangkok CBD. Transaction proceeds will be
used for new investment and development projects and to reduce gearing.
Maintain Add
We maintain our Add rating on FCL with a slightly higher target price of S$2.04, based
on a 30% discount to RNAV. Whilst gearing of 83.6% is higher than its peers, we believe
potential capital management such as asset sales to its existing REITs would enable
FCL to recycle capital going forward. The stock is currently trading at a steep 43%
discount to RNAV. Other stock price catalyst could also emerge should the group
increase its free float.
http://www.straitstimes.com/business/pro...s-overseas
The move by property firm Frasers Centrepoint Limited (FCL) to expand its residential business from the lacklustre local scene to Australia, China and Britain has proved a winning strategy.
The group is now making a play in a fourth foreign market - Thailand.
It announced yesterday that it has signed a deal linked to the Sirivadhanabhakdi family. Mr Charoen Sirivadhanabhakdi's TCC Group is majority shareholder of FCL.
Quote:The move would mark a re-entry in the Thai residential and commercial markets for Frasers Centrepoint Limited, which sold off its interests in two other Thai property companies last December.
FCL said it plans to pay about $196 million for a 29.5 per cent stake in Thai-listed Golden Land Property Development. Univentures, a firm controlled by two of Mr Charoen's sons, is the majority shareholder of Golden Land.
The move would mark a re-entry in the Thai residential and commercial markets for FCL, which sold off its interests in two other Thai property companies last December.
FCL said Golden Land is a good fit as it has a "shared philosophy" - to capture the broad-based residential market in the mid-income segment and establish a real estate investment trust platform, among other strategies.
FCL chief executive Lim Ee Seng told The Straits Times the TCC Group-FCL match is ideal: "We can capitalise on (TCC Group's) connections and ability to execute projects in Thailand; at the same time, they like our corporate governance and management expertise."
I dont like this move. Thailand is not a global investor favorite property market.
Politically country leadership is unclear now. And less investors would be keen on thai properties..
(10-11-2015, 10:39 PM)Contrarian Wrote: [ -> ]I dont like this move. Thailand is not a global investor favorite property market.
Politically country leadership is unclear now. And less investors would be keen on thai properties..
Got to give Towkay the benefit of doubt since he knows Thailand thru and thru...
In GODFather we trust
Vested
Core
GG
(10-11-2015, 10:49 PM)greengiraffe Wrote: [ -> ] (10-11-2015, 10:39 PM)Contrarian Wrote: [ -> ]I dont like this move. Thailand is not a global investor favorite property market.
Politically country leadership is unclear now. And less investors would be keen on thai properties..
Got to give Towkay the benefit of doubt since he knows Thailand thru and thru...
In GODFather we trust
Vested
Core
GG
The fox revealing it's tail?
(11-11-2015, 08:38 AM)MINX Wrote: [ -> ] (10-11-2015, 10:49 PM)greengiraffe Wrote: [ -> ] (10-11-2015, 10:39 PM)Contrarian Wrote: [ -> ]I dont like this move. Thailand is not a global investor favorite property market.
Politically country leadership is unclear now. And less investors would be keen on thai properties..
Got to give Towkay the benefit of doubt since he knows Thailand thru and thru...
In GODFather we trust
Vested
Core
GG
The fox revealing it's tail?
why worry when he still own 88% of the company... he still got plenty of wrok ahead of him...