Stamford Land
Last:0.35
-0.005
Stamford Land rebound from 18.5 cents
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Hope CK Ow keep this office building for the A$10 millions net rental.
About A$1.1 cents EPS from this project.
No worries....A stock will falls before chiong,,,,
Dynons plaza due diligence still not yet finalised ?
its going to fly tomorrow
This counter picked up 2.5c today, seems unusual for a day without any new announcements on sgx. any news anybody?
Still talking????........AGM on 29 July 1430 hrs.....some announcement then??
Asian investor pays $40m for Kings Perth Hotel
AN Asian property investor has paid about $40 million for the Kings Perth Hotel in the central business district.
The transaction caps a wave of sales activity in Perth CBD, with more than $110m worth of property changing hands or in due diligence during the past couple of weeks.
The 119-room hotel, fronting Hay and Pier streets, was sold by Mirjam Norvilas, who has owned the property for about 20 years.
One source said the price tag was short of expectations.
The three-star hotel was previously offered for sale at a reported price of $70m in 2007, but was withdrawn.
The property, known as The Kings Complex, is made up of the Kings Hotel, West and East Office Towers, a ground-floor restaurant and two bars. It also features a multi-storey car park, with 374 bays.
Late last month, 32 St Georges Terrace was sold for about $30m, through selling agent Knight Frank.
The vendor of the 13,000sq m office building is Westmain Corp.
Nearby, at the former Emu Brewery site, negotiations are continuing with a Malaysian property group for a price of about $40m.
The Spring Street site was reportedly owned previously by Turnstone Nominees -- a joint venture between Saville Australia and Babcock & Brown.
Turnstone fell into receivership in early 2008.
In addition, negotiations are continuing for the $130m sale of Dynons Plaza.
Sources said the buyer circling the 14-storey building was German fund Real IS.
The Dynons transaction would be the biggest sale in Perth so far this year.
Dynons Plaza is owned by Singapore-listed Stamford Land Corporation, formerly Hai Sun Hup Group. It is Australasia's largest independent owner and operator of luxury hotels and was founded by CK Ow.
Dynons is located on Hay Street and is fully leased for 10 years from April to major oil and gas group Chevron Australia.
The annual net income of the building is about $9.78m, with a rent review structure that provides for annual fixed increases.
The site was earmarked for a luxury hotel but Stamford opted to build a premium office tower instead.
OFF AGAIN, ON AGAIN??
European super fund sizes up $130m Perth tower
One industry source said yesterday the building was under contract and the parties had "agreed to some terms".
Swiss pension fund AFIAA Foundation for International Real Estate Investments said recently it was not interested in the property.
Sources also dismissed Singapore real estate investment trust K-REIT Asia as the likely buyer.
Expressions of interest for the 14-storey building -- owned by Singapore-listed Stamford Land Corporation -- closed in May. Stamford, formerly Hai Sun Hup Group, is Australasia's largest independent owner and operator of luxury hotels. It was founded by C.K. Ow.
Savills Western Australia managing director Paul Craig would only say: "We have selected a party and we are in due diligence with a particular party."
If successful, the Dynons deal would be the biggest sale in Perth this year.
The Hay Street building has 13,360sq m of A-grade office space, and is fully leased for 10 years from April to major oil and gas company Chevron Australia.
The annual net income of the building is about $9.78m.
Found this article dated 17 Jun10 (4 days ago). Looks like sale of Dynons Plaza is off.
Anyway, its not all that bad cos of strong long term rental yields which will boost STL earnings in years to come.
http://www.theaustralian.com.au/business/property/swiss-eager-to-add-to-portfolio/story-e6frg9gx-1225880576633
Swiss eager to add to portfolio Katherine Jimenez
From: The Australian June 17, 2010 12:00AM
HANS Brauwers, chief executive of AFIAA Swiss Foundation for International Real Estate Investments, says the Swiss pension fund is on course to make further acquisitions in Australia, as it aims to build up a presence worth up to $400 million.
"Australia's property market is, in relation to some others in Europe, very strong, transparent and liquid," Mr Brauwers said. "We keep looking for the next acquisition."
Since last November, AFIAA has made two large purchases for a total of more than $230m. Most recently it paid $94m for Leighton Holding's HQ South Tower in Brisbane's Fortitude Valley.
Late last year, the fund paid $137m for the Atrium office building in Sydney. "We have invested in Australia because of the counter-cyclical opportunities we have seen since autumn 2008: low interest rates, high yields, no competition, attractive currency rate, high new building quality and stabilised economic outlook," he said.
But Mr Brauwers tempered his comments by adding there were upcoming obstacles such as rising interest rates and lower yields because of much more competition, and volatile currency rates.
"Falling currency rates are an invitation but rising rates should cause caution," he said.
Mr Brauwers said that the higher interest rates would make further investments in Australia "uncomely" because the amount of debt, with "up to 50 per cent necessary as natural currency hedge". A natural currency hedge involves borrowing in the local currency to fund an investment, so when interest rates go up, so do borrowing costs.
Melbourne and Perth were the markets AFIAA was interested in, said Mr Brauwers, while adding that it would be likely to favour the logistics and office sectors. But one opportunity not on its radar was Dynons Plaza in Perth's central business district. "I have been looking at the Perth market," he said. "I found the right acquisition, but the owner didn't (want to) sell any more."
Mr Brauwers said he had looked at Dynons Plaza, which is leased to Chevron, but he believed the rents were too high and therefore AFIAA would not buy. Several buyers are believed to circling the property, with at least one international property group among the pack. The Hay Street building is tipped to fetch about $130m. Asked if the fund was close to making any other acquisitions, Mr Brauwers replied: "At any time, we are close to another acquisition."
Good.
Already bought some at 0.46 last 2 weeks. Will buy agin when price drop.
chinton86 ( Date: 01-Jun-2010 12:12) Posted:
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Then u buy lo
Big buying @ 0.51. Someone knows something that we don't ?
the decision on Dynons should be known by this week.
i second that.
Keeping this stock is much much better than saving in the bank - with very good yield and potential captial gain
shplayer ( Date: 30-May-2010 20:46) Posted:
Taking a longer term outlook, it would be better to keep Dynon Plaza (DP) as the net rental revenue could easily boost STL eps to >4.0c for FY2011.......perhaps closer to 5.0c eps, if AUD/SGD xc rate is favourable.
Div can be 3.0-4.0c giving a yield of 6% to 8% (based on share price of 50c.)
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Taking a longer term outlook, it would be better to keep Dynon Plaza (DP) as the net rental revenue could easily boost STL eps to >4.0c for FY2011.......perhaps closer to 5.0c eps, if AUD/SGD xc rate is favourable.
Div can be 3.0-4.0c giving a yield of 6% to 8% (based on share price of 50c.)
Base on Anual rental of 9.75 M , and if the higher bid is only 130M then it is better for SL to keep this office as the rental yield is 7.52 %, this give SL good consistent cash flow.
shplayer ( Date: 29-May-2010 12:10) Posted:
Perhaps the sale of Dynon may not go thru if price is not up to expectation. The recent market turmoil would have dented sentiments.....hence buyers may not be too bullish about offering a higher price. This coupled with the weakening of AUD agaonst SGD (AUD/SGD rate used in FY2010 result was 1.2825 vs current approx 1.16.........approx 10% deterioration) will further impact the gains after FX translation.
Ref STL FY2010 announcement......
http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_15CA815482CA8E4048257730003738E1/$file/SLC27may2010.pdf
see para 10......commentary on business outlook for next 12 months, it talked about rental revenues from Dynon commencing 24 July......Question? Why will they comment on rental revenues when the sale is pending? Is this a hint that the sale is called off for, at least till the market conditions improves? Perhaps.
But, keeping Dynon for rental revenue is not too bad. Based on the estimated net rental income of AUD 9.5m pa, it will contribute to eps of approx 1.28c (using 1.16 xc rate).......this is about 55% of STL eps for FY2010 (less the writeback on sale pf 100C pasir panjang).
Personnal opinion.
Caveat emptor |
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hi shplayer,
You're really comversant with SL's value and news. You must be vested to have so much interest in the company. Just wondering if Ow had sold out SL just before the last financial crisis, how much shareholders would have gained form the sale? (If I'm not wrong, was the est. sale price = AUD $800mil or I overestimated?)
shplayer ( Date: 29-May-2010 12:10) Posted:
Perhaps the sale of Dynon may not go thru if price is not up to expectation. The recent market turmoil would have dented sentiments.....hence buyers may not be too bullish about offering a higher price. This coupled with the weakening of AUD agaonst SGD (AUD/SGD rate used in FY2010 result was 1.2825 vs current approx 1.16.........approx 10% deterioration) will further impact the gains after FX translation.
Ref STL FY2010 announcement......
http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_15CA815482CA8E4048257730003738E1/$file/SLC27may2010.pdf
see para 10......commentary on business outlook for next 12 months, it talked about rental revenues from Dynon commencing 24 July......Question? Why will they comment on rental revenues when the sale is pending? Is this a hint that the sale is called off for, at least till the market conditions improves? Perhaps.
But, keeping Dynon for rental revenue is not too bad. Based on the estimated net rental income of AUD 9.5m pa, it will contribute to eps of approx 1.28c (using 1.16 xc rate).......this is about 55% of STL eps for FY2010 (less the writeback on sale pf 100C pasir panjang).
Personnal opinion.
Caveat emptor |
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The general office rental yield in Perth CDB is 6%, so the property should command market value of A$163 millions base on Annual net property income pf 9.78 millions.
Just curious why market seems to aceess to this confidential info ? Insiders at work ?
" Savills West Australian managing director Paul Craig declined to comment on the status of the sale."
