HupSteel

[paullow]

How about the demand risk? There was a period in the 1980s to early 1990s where properties were at a doldrum....??

one solution would be to lease it to reits. garmen cooling measures are directed at housing. not industrial. thus i don't think this would be an issue even if hupsteel were to sell it off as stra units.

and in addition, hupsteel aquired the freehold properties 30-40 yrs ago, if market conditions worsen, they could just wait and see. no loan so no hurry to offload anyway.

likely they need to collaborate with a mid-large size construction company. look at csi building nearby. it took abt 2yrs to completion. for hupsteel, land is freehold and loan free. as what a forumer mentioned in an earlier post, valuation for a freehold building is in excess of 80m. and market cap of hupsteel is only 120m. this is not even taking into account an even more prime land at 38genting lane also freehold and its rather rundown and sooner or later due for revamp.
if building of 6kim chuan dr cost 200psf, if built up 20000x8storeys, construction could cost 32m. and hupsteel has ard 50m cash, enough to cover this. it could then lrase it to reits and enjoyvrecurring income or sell it as strata units. freehold industria units l

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look at the share buy back for the past few years and go visit the sites physically. my gut feel is that this stock is going to be a two bagger.


(ps my opinion may be biased since i am vested)
pls do your own research. this is not a buy or sell call.