SingaporeLandGrp    Last:1.96    -0.04

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Vic,

Cannot complain lah.....    

 

Based on the numbers in the BT article, my estimate of the redevelopment of the UIC Bldg will yield UIC an eps of about 40 to 45 cts.

Bear in mind that this will be spread over the period of the project development.......say 2-3 years?

 

Article in BT this morning. Published April 10, 2007

UIC poised to buy rest of UIC Building? En bloc deal could value Shenton Way office block at $630m: analysts   By KALPANA RASHIWALA   MAINBOARD-LISTED United Industrial Corporation is poised to buy the remaining 21 per cent of UIC Building that it does not already own under a collective sale that could value the ageing leasehold Shenton Way office block at about $630 million, say market watchers.   UIC Building: Consultants say 600-750 apartments can be built on the site, with $1,500 psf average selling price This pricing works out to about $900 psf of potential gross floor area inclusive of a total of around $180 million payable to the state for development charges and upgrading the site's lease to 99 years from the current remaining term of about 61 years. UIC Building, which is being marketed by CB Richard Ellis, is understood to have earlier attracted three bids - from City Developments, Wing Tai and UIC itself - in an expression of interest exercise which closed on Feb 8. Analysts reckon that UIC would be in a better position to pay a higher price to the other owners as, unlike rival developers, its outlay will be lower since it already owns 78.8 per cent of the building. UIC is controlled by Singapore's Wee Cho Yaw and Philippine tycoon John Gokongwei. 'For UIC to be in talks with other owners to buy the building through a collective sale, its latest offer must be higher than the top price indication achieved during the expression of interest,' said a real estate market watcher. 'And as UIC already owns 78.8 per cent of share values in the development, it's probably going about the collective sale carefully, being mindful of the minority owners and ensuring that the sale process is handled in a transparent way - to minimise hiccups later when an application is made to the Strata Titles Board,' he added. Under Master Plan 2003, the 72,960 sq ft site is zoned for commercial use with an 11.2+ plot ratio and qualifies for a 10 per cent bonus plot ratio. The site has a 35-storey height limit. The maximum potential gross floor area works out to 898,867 sq ft inclusive of the bonus plot ratio. Despite the current shortage of office supply on the island, market watchers reckon the best and highest redevelopment use for the UIC Building site would probably still be residential, rather than office. This is because a residential development will be able to achieve a higher efficiency (ratio of net saleable area to gross floor area) and lower construction/ interest costs. Any redevelopment will be subject to approval from the authorities, including the Urban Redevelopment Authority. A full-residential redevelopment scheme could result in about 600 units averaging 1,500 sq ft being built on the site, or 750 apartments assuming a smaller average unit size of 1,200 sq ft. Property consultants reckon a realistic selling price to assume for a new condo project on the UIC site, given the substantial number of units involved and the fact that the site is not next to the popular Marina Bay, could be about $1,500 psf on average. Factoring in profit margins for the developer and rising construction costs, the land price works out to about $900 psf of potential gross floor area. When an expression of interest exercise was conducted in late December, the asking price bandied was 'over $830 million'. However, this was probably the price agreed with the sales committee based on owners' expectations of a price of $2,000 psf for their respective existing strata areas in the building (the building has about 415,000 sq ft existing strata area) - rather than an evaluation of what price the market can support for a redevelopment scheme.

 

cashiertan,

Good for you.

 

EZra has tripled in space of less than a year. what is double up?

 

rickytan,

 

Huh???? This counter has more than doubled in price in the past 7 months.......I think its a pretty good run up.

 

I am also wondering why other property counters all charging except this... However, I am happy to  note Vic's comments.  I have recently  added 2 more lots bought @ $2.65 to my present holdings. Hope tomorrow is  its turn to charge like a bull......  Cheers to all vested :)

 

It is going to cross the $ 3.00 today. Wheelock and Wing Tai already $ 3.42.Cheong and catch up.

 

Vic,

Thanks for the run down.

 

 

IC... so looks like you're pretty much glued to your PC screen.

 

No, I am not particularly a day trader.

I go in and out whenever I see an opportunity on my charts.

But since I am often wrong in my analysis, I quickly exit when I detect a slight 'bad sign'... before a big loss occurs.

 

iPunter, are you a day trader? because you mentioned that you head for the exit immediately.

 

Singaporegal... 

hahaha...

That term (Singaporegal-bashing) is cute.

It may appear I am "bashing" you or 'spanking' you... O... whatever...

But don't take it personal, okay?... :)

 

I said TA is not very reliable...

Being a TA practitioner myself, I know how frequently unreliable our analysis can be.

It may not be "7 times out of ten" that one is right with TA. If that were so, it would be obviosly wonderful, won't it?... :) Rather, for me it's more of a 50/50 proposition.

Like many prudent traders here, I am always ready to 'head for the exit' when I am proven wrong in my analysis. It's the big gains when I am right that brings in the dough.


 

 

singaporegal-bashing again?  

At the time of the post, it appeared that the price would top out soon. Anyway, it was a wrong call on my part. Oh well... it happens. 

 

 

Nah... I'm not flustered....   I'm just pointing out that its very dangerous for people to make sweeping statements.

 

shplayer...

hahaha... you are right... da ge... :) 

 

Aiyah you guys, don't get all flustered lah.

 

Singaporegal is a TA purist.....so she say what she sees in the charts......without considering other non TA  factors. It works for her most of the time and she's just sharing.

 

I recall mentioning in an earlier post that TA does not work for UIC too well as the trading transactions are quite substantially influenced by the BBs.

 

Perhaps Victorian's type of analysis.....T+1,2,3 etc....buy up, sell down etc will be a better method for this counter. Just a thot.

 

So, vic, if you are reading this, appreciate your comments.

 

Perhaps forums of the future will be video-based...

That would certainly help to remove any misunderstanding... :)