Eastern Holdings

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Below are some of Eastern Hldgs's Investment properties (extracted from its AR2012 - Pg.63)

A 4-storey factory for publishing, 60 years from 1 Aug 1969 at
1 Lower Delta Rd,Land=4515 sqM,2012's FV=$18,000,000 Carrying Value =$2,762,795

51 Tras Street, Land=145.9 sqM 2012's FV=$5,700,000 Carrying Value =$1,776,433
53 Tras Street, Land=143.1 sqM 2012's FV=$5,700,000 Carrying Value =$1,842,876
55 Tras Street, Land=145.7 sqM 2012's FV=$5,700,000 Carrying Value =$1,887,402
57 Tras Street, Land=151.6 sqM 2012's FV=$5,700,000 Carrying Value =$1,823,783

and I believe above Fairvalues should still be on the conservative side, esp. the four Tras Street properties are likely to be worth even more.

at a recent auction by Colliers Intl (on the 27 Feb2013, at Amara Hotel)
No. 38 Tras St was real hot !! (it's a 3-sty shophouse with attic, 1298 sqft, 99yrs wef 14/3/1995 )
asking $5.38m....
1st bid $5.20m... and 22 bids later ==> it was done for $6.6m !!!

Now, notice that No.38 Tras St is actually a smaller property - its landsize at only 1298 sqft (120 sqM) and also located further away from TanjongPagar MRT.

whereas Eastern Hldgs's four units have landarea averaging 146 sqM each (that's 22% larger) and all are also buildup to 3-storey.
==> so arguably, each unit should be worth at least $6.6m, possibly even up to $8m each !! versus their bookvalues at around $1.8m and being depreciated further each year.

Appears to be in-line with the $28 mil price tag EHL is asking for the 4 shophouses, which is around $1740 psf.

Checked INLIS and it seems like a caveat was already lodged back in november last year against the 4 shophouses... so I guess we have been speculating against something that has already happened? Strange thing is that no such announcements reported by EHL...

CAVEAT ID/294952K lodged on 28/11/2012 at 11:26
CAVEATOR
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CHEONG KENG HOOI & COMPANY PTE. LTD.
Interest Claimed : PURCHASER
Purchase Price : $ 26,500,000
Contract/Option Date : 28/11/2012

CAVEAT ID/294952K lodged on 28/11/2012 at 11:26 (continuation)
Unit/Lot no Price Contract Date
------------------------------------------------------------
TS3-520N $6600000 28/11/2012
TS3-521X $6600000 28/11/2012
TS3-522L $6700000 28/11/2012
TS3-523C $6600000 28/11/2012