2nd Chance Properties

[greengiraffe]

Too much conditions attached - one of which is the listing of a REIT. Who will be interested to buy such a REIT when recent REIT floats of a bigger size and much better quality have failed to attract much interests.

In addition, with 2nd Chance share price at almost full value post disposal, what can shareholders look forward to on top of return of cash. More critically, 2nd Chance need to provide shareholders with future direction that the company is heading given its properties is the main shining light of the entire group as its retail arm has got checkered history so far...

Vested
Odd Lots

The company will sell almost all of its properties to a property fund. The disposal is valued at S$175,376,412, with book value of S$134,773,500. It is a good price, IMO.

(not vested)
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RATIONALE FOR THE PROPOSED DISPOSAL

The Group entered the business of investing in properties in 1999-2000. It has held its properties as long term investments and earned steady rental income which became an increasing part of the Group’s revenue and profits over the years. The Group has reaped the benefits manifold over the past 14 years or so in the property investment business.
Going forward, the Board thinks that it is prudent to significantly reduce the Group’s exposure to its investments in properties. Additionally, the opportunity to sell the properties en masse is a rare one and provides the Group with an easier and more expedient means of disposing the Properties as compared to selling each Property individually.
The Proposed Disposal is also expected to unlock the equity tied up in real estate and the additional working capital derived from the proceeds of the Proposed Disposal can be redeployed into the operating business or to fund business expansion in the region, potentially generating a much higher return on equity. Please refer to paragraph 11 (Use of Proceeds) below for more details of the use of proceeds

Ref: http://infopub.sgx.com/FileOpen/SCPL_Ann...eID=273640