Lian Beng   

Lian Beng Acquires Mountbatten site for $42M

My Target Price is $1.00 .Previous High is 37 cts Still long WAY to BREAK THE 89 cent

 

My take is not to over-react to this.  The site is just outside CBD and near preminum schools like Tao Nan; @ $633 psf, it is not too costly, given current property boom. If you study today's trade and time of sale, many guys are buying in when prices dipped at 0.485. Infact there was a recovery prior to mkt close. My advice is not to lose sight of the big pic, which is IR. On the whole, Lian Beng is still a stock with good upside potential. 

 

'cos they may be over paying for the property already...capable of only doing small development which means pricing limited...think they have over paid for their recent acquisition as well...

 

after news release, y does this counter keep dropping???

 

NEWS RELEASE

LIAN BENG ACQUIRES MOUNTBATTEN SITE FOR S$42 MILLION

SINGAPORE, 4 JULY 2007

of eight freehold semi-detached houses along Mountbatten Road for S$42 million, by way of

a private treaty arrangement.

The 47,447 sq ft land parcel, which includes an adjoining piece of state land, has a plot ratio

of 1.4, thus yielding a gross floor area of 66,425 sq ft. The average price of the site works out

to about S$633 psf per plot ratio, inclusive of development charge.

Commenting on the acquisition, Mr Ong Pang Aik PBM, Managing Director of Lian Beng

Group said, ?This transaction is yet another step by Lian Beng Group to further its

advancement in the property development business, which is synergistic with our existing

core business.?

Located in close proximity to the Chinese Swimming Club, established schools such as Tao

Nan School, CHIJ (Katong) Primary, and Chatsworth International School, as well as

shopping facilities like Parkway Parade and Katong Shopping Centre, the site has the

potential to be re-developed into a 60-unit condominium averaging 1,100 sq ft each,

The project is expected to contribute positively to the Lian Beng Group. According to

Donald Han, Managing Director of Cushman & Wakefield, which brokered the deal, ?Going

by current market prices in the vicinity, the re-developed units with condo facilities should be

able to fetch S$1,100 psf and above.?

This transaction by Lian Beng Group comes two weeks after its announcement of a jointacquisition

of Lincoln Lodge off Newton Road.? Lian Beng Group Ltd (?Lian Beng?) has acquired a cluster