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11-06-2013, 09:50 AM
http://info.sgx.com/webcoranncatth.nsf/V...600288177/$file/20130611_LKHS_Misc_Proposed-transfer-retails-units-PLS_Att.pdf?openelement
LKH announced this morning that it is diluting its 25% interests to JV partner Sun Ventures (could be linked to Guthrie / Invesco).
Effectively, the following messages can be deduced from the announcement:
i) Book value of 100% of PL Sq Retail S$190m on completion, or $2000psf, leaving an estimated costs of $710m for the office component (430000sf or 1650psf costs) - 95% sold based on average of at least $1800 psf - pretax gains of at least $64m (100%) or $51.2m LKH share. Note the above gains exclude LKH's construction profits from managing the project;
ii) Current market value on proposed transactions S$300m or S$3158psf implying an buffer of S$110m above LKH's consortium development costs;
iii) LKH booked an effective $27.5m gain (pretax) on dilution of interests.
Whilist there is little immediate impact from the dilution exercise, it reiterated LKH's conservative approach (focus on net cash) towards mammoth development projects while retaining a managable exposure for future recurrent income.
Vested
GG
LKH announced this morning that it is diluting its 25% interests to JV partner Sun Ventures (could be linked to Guthrie / Invesco).
Effectively, the following messages can be deduced from the announcement:
i) Book value of 100% of PL Sq Retail S$190m on completion, or $2000psf, leaving an estimated costs of $710m for the office component (430000sf or 1650psf costs) - 95% sold based on average of at least $1800 psf - pretax gains of at least $64m (100%) or $51.2m LKH share. Note the above gains exclude LKH's construction profits from managing the project;
ii) Current market value on proposed transactions S$300m or S$3158psf implying an buffer of S$110m above LKH's consortium development costs;
iii) LKH booked an effective $27.5m gain (pretax) on dilution of interests.
Whilist there is little immediate impact from the dilution exercise, it reiterated LKH's conservative approach (focus on net cash) towards mammoth development projects while retaining a managable exposure for future recurrent income.
Vested
GG