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According to Maybank Kim Eng, Wing Tai Holdings has so far resisted the urge to lower its prices on its Le Nouvel Ardmore project, which still has 41 units unsold, noting that the company still has two years to move the remaining inventory.

Here's more from Maybank Kim Eng:

The sale that caught the eye. Wing Tai sold one more unit at Le Nouvel Ardmore in February at a month-high unit price of SGD4,372 psf, suggesting that Wing Tai is not compromising on pricing just to move inventory. Our ASP assumptions for its two upcoming project launches may also be a tad conservative. At current valuation of 0.64x P/B, we maintain that Wing Tai is a bargain. Reiterate BUY with a Street-high target price of SGD2.55.

Taking the slow high-end market in stride. The latest transaction suggests that Wing Tai remains steadfast in its pricing strategies. We do not foresee any immediate need to adopt a more aggressive pricing strategy particularly for Le Nouvel Ardmore, given its low estimated breakeven of SGD2,160 psf. In terms of timing, Wing Tai has a little over two years to finish selling the remaining 41 units, as we expect the project to obtain its TOP in the coming months.

Impending new launches. We expect The Tembusu to be launched sometime this quarter, which should be met with healthy demand given its proximity to Kovan MRT station. That is likely to be shortly followed by the launch of the Prince Charles Crescent (PCC) site possibly around June. Considering that SingLand is looking to price Mon Jervois nearby at ~SGD2,000 psf, our ASP assumption of SGD1,750psf for the PCC site would appear a tad conservative. Should Wing Tai manage to achieve SGD2,000 psf, its RNAV could be raised by 5 cents/share.

What’s in the price, and what’s not? Wing Tai is trading at a deep 34% discount to its NAV/share of SGD2.95. From its Enterprise Value, the implied GDV of its attractive Singapore residential landbank including the two prime Armore Park sites is as low as SGD1,562 psf, while valuing its investment properties and growing retail business at next to nothing!

Better shape than ever. Wing Tai still trades below its ten-year average P/B of 0.84x despite having reduced its net gearing position to a ten-year low of ~16%. We believe the current steep discount severely undervalues the stock. Reiterate BUY with a target price of SGD2.55, valuing the stock at 0.86x P/B and 0.7x P/RNAV.

A NASSIM Road bungalow, owned by Wing Tai Holdings chairman Cheung Wai Keung, was put up for sale today.

If sold, the plum 85,000 sq ft site is expected to attract offers of between $250 million to $300 million and could be one of the largest bungalow deals here, sole marketing agent Jones Lang LaSalle (JLL) said.

The two-storey bungalow in one of Singapore's most exclusiive enclave is sited on elevated grounds and has a swimming pool and tennis court.

Offers of up to $300 million are expected, which works out to up to $3,529 per sq ft of land area, said Mr Karamjit Singh, JLL's head of investments and residential.

Is this a signal that the property market is crashing and that he is trying to sell his house quickly and make more investment when the property market crashes?

(09-04-2013, 11:18 PM)Some-one Wrote: [ -> ]A NASSIM Road bungalow, owned by Wing Tai Holdings chairman Cheung Wai Keung, was put up for sale today.

If sold, the plum 85,000 sq ft site is expected to attract offers of between $250 million to $300 million and could be one of the largest bungalow deals here, sole marketing agent Jones Lang LaSalle (JLL) said.

The two-storey bungalow in one of Singapore's most exclusiive enclave is sited on elevated grounds and has a swimming pool and tennis court.

Offers of up to $300 million are expected, which works out to up to $3,529 per sq ft of land area, said Mr Karamjit Singh, JLL's head of investments and residential.

Is this a signal that the property market is crashing and that he is trying to sell his house quickly and make more investment when the property market crashes?

The property market has cooled a bit and i don't think in the long run, the property market will crash. The cooling measures are there to facilitate the steady appreciation of property prices due to inflation.

news related to inflation
"Since the financial crisis, the Federal Reserve has been performed three quantitative easing to buy $ 1.77 trillion of U.S. Treasuries and $ 1.02 trillion of mortgage-backed securities, asset size to $ 3.2 trillion. If the debt purchase plan continued since the end of the Fed’s asset size will increase to about 4 trillion U.S. dollars. Many investors worry that the Fed has such a huge balance sheet exit from accommodative monetary policy, will disrupt the market and lead to a substantial rise in interest rates."

source: http://www.thestockmarketwatch.co/quanti...-year.html

He definitely knows the property cycle better than you and me. Property is his bread and butter.

Alternatively, he may have a really good investment that he is eyeing to buy with this cash bundle from this property sales.

The Straits Times
www.straitstimes.com
Published on Apr 10, 2013
Nassim Road bungalow up for sale - at record $300m

By Esther Teo Property Correspondent

A LOCAL property tycoon is asking for up to $300 million for his Nassim Road bungalow - an astonishing amount that would easily make a record sale in Singapore.

Owned by Mr Cheng Wai Keung, the chairman of listed developer Wing Tai Holdings, the two-storey home sits on a plum 85,000 sq ft elevated site in one of Singapore's most exclusive enclaves.

As well as its prime location just off Orchard Road, there is also a swimming pool and tennis court to woo potential buyers, who will need very deep pockets.

Offers of between $250 million and $300 million are expected - or between $2,947 and $3,536 per sq ft (psf) of land area - said Mr Karamjit Singh, head of investments and residential at Jones Lang LaSalle (JLL), the sole marketing agent.

If it goes through, it would clearly be the biggest residential sale ever made here.

Singapore's largest bungalow transaction so far is believed to be a $87.5 million sale of a 291,000 sq ft parcel at Swettenham Road off Holland Road. It was made in an asset swop deal between Singapore Press Holdings and construction firm Lum Chang in 2001.

A sale price of $250 million to $300 million for the Cheng house would also eclipse what is believed to be the most expensive good-class bungalow sale made in the Nassim Road area in terms of psf price - a $47.8 million sale of a 23,922 sq ft site that worked out to $2,000 psf.

Price records do have a tendency to go when Nassim Road homes hit the market, JLL said.

"(The road) has a remarkable history of leading the entire good- class bungalow market in Singapore by constantly setting new benchmarks and outperforming the whole market," noted Mr Singh.

"We believe this trend will continue as Singapore's population and affluence grows while the number of Nassim Road good- class bungalows remains virtually the same in the years ahead."

Mr Cheng's Nassim Road site has a frontage of almost 100m and is rectangular-shaped, making it easier to slice into up to five smaller good-class bungalow plots if the buyer opts to redevelop, JLL noted.

Good-class bungalows typically occupy at least 15,000 sq ft so the option would be commercially viable.

Mr Cheng is prepared to take offers for the whole plot or for either of two smaller parcels, measuring 31,647 sq ft and 53,192 sq ft.

Mr Singh noted that "large bungalow plots in Nassim Road rarely come onto the market".

A JLL survey found that with most other large plots on Nassim Road having been sub-divided, there are only five other freehold parcels on the road that have a land area of 80,000 sq ft or more now.

Two are understood to be owned by the governments of Britain and Russia, and one by Brunei's royal family.

Mr Cheng's Nassim Road site is actually owned by Winright Investment, according to the Singapore Land Authority's Inlis system.

The 62-year-old tycoon, who is also managing director of property and retail firm Wing Tai, and wife Helen Chow are the only shareholders of Winright.

They list their address at another Nassim Road home.

esthert@sph.com.sg

Looks like our Mr Cheng is saving up ammo...maybe he wants to do a GO?!!!!!!

"Singapore's largest bungalow transaction so far is believed to be a $87.5 million sale of a 291,000 sq ft parcel at Swettenham Road off Holland Road. It was made in an asset swop deal between Singapore Press Holdings and construction firm Lum Chang in 2001."

What was this asset swop? Is it bungalow for land?

Higher chance of Wing Tai privatisation.

What is Mr Cheng shareholding of Wing Tai?

Has he been buying shares lately?

http://www.stproperty.sg/articles-proper...al/a/56886

(10-04-2013, 11:32 AM)a74henry Wrote: [ -> ]"Singapore's largest bungalow transaction so far is believed to be a $87.5 million sale of a 291,000 sq ft parcel at Swettenham Road off Holland Road. It was made in an asset swop deal between Singapore Press Holdings and construction firm Lum Chang in 2001."

What was this asset swop? Is it bungalow for land?