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At current price of 53.5c, its still trading at >50% disc to its 'market' NAV.
If you consider what OCK has done for Spore Ship a couple of years ago, he sold almost his entire fleet at its peak....when container rates were the highest and cost of new builds were did not judtify the ROI. A year later, he sold off the logistic portion of Cougar ....reaping good gains.
In the recent news report on the aborted Stamford Land deal, he was quoted as saying he's reluctant to sell cos of his 'passion' for the hotels. This could be part of his 'wayang' to extract a higher price - willing buyer; reluctant seller. Also, as a shrewd businessman, I don't think he would have rejected the exclusivity extension if he did not think he could get a better deal from the buyer or others.
Note - The rejection of the extension of exclusivity does not mean discussion with the buyer has ceased........it means STL can talk to any interested buyer/s.....which can only benefit the company.
I declare I am vested.....so my views may be slanted towards optimism......so do take care with your investment decision.
Got a boost from the reported aborted sale of the hotel assets. Looking good.
Do not under estimate the deal making ability of OCK.
Sometime ago, he sold off most of his ships at S'pore Shipping due to the shortage of ships in operation and increase in shipping rates. Creating a few hundred millions for shareholders.
Why did he publicise the company's rejection of the deal even though the propective buyer has asked for extension and also paying $1.5mil??
Why the company did not announce the Exclusive Deal with the buyer then?
This counter has been generally ignored by many investors.
Such FREE publicity campaign will greatly increase the awareness by investors and potential more buyers for his hotels.
Can't wait to see the action on Monday ......
If the deal was done on 31 Dec 2007, it would have raised the NAV of SLC to $1.16.
FYI
CC,
Its not that OCK does not want to revalue the hotels....but rather the Aussie and Kiwi accounting rules does not provide for it.
The $1.5m fees is peanuts (or should I say two and a half peanuts) compared to the revaluation. But, all peanuts are welcome.
By not extending the exclusivity, it would seem that OCK may have turned his back on a very good deal. But, knowing how shrewd he is, he is probably playing hard to get to squeeze a better deal for shareholders.
If only we had him running our SWF......Spore will be much better off......sigh!!!!
HeeHee.. Ya Stamdford Land... ROCKS!!!!
But better dont attract too high vol that it goes up to Top 20 counters.. else play down by BB... let it go up slow and steady.. and QUIETLY!! Heehee... Shhhh....
At last we see the real valuation of Stamdford property.. This chairman dont want to revalue his property.. PPle revalue for him.. FOC!! Keke.. plus $1.5m from buyer for the due diligence cost... Clever... Haha..
BINGO.........now we get a feel of the real market value of the hotel portfolio.
At AUD850m for the hotel portfolio, it translates to approx S$1.21 per share.....so NAV is more than this....Co. still has their property development assets.
http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_2DDE6D45B7997858482574120040B1C1/$file/SLC_Announcement_20032008.pdf?openelement
VALUE INVESTING ROCKS!!!! :-) :-)
company rejects offer of AUD 850million for their hotel portfolio!!
More than twice their book value!!
Moreover, company receives $1.5m from buyer for the due diligence cost.
What does it suggest?
I think mgmt feels that their hotel portfolio is worth more than the offer.
Buyer willingly pays for the due diligence cost despite rejection from mgmt.
Expect much interest in this counter next week.
ChinChye,
Don't think the appeal will affect the FY08 result cos it was not taken into account in the Q3 financials.
By not having to pay A$11m (S$14m) in additional tax translates to approx 1.6c per share.
Upside???? Hey, in today's market, don't think anyone will make a prediction......will be happy if there is no price drop.
Ok, whats the upside of successful appeal? can share ur views??
Yep, patience is the name of the game with SLL. I continue to accumulate on dips.....but have also sold off portions to take profit on strong rises.
Yields have always justified holding this counter vs bank FD or CPF.
Thanks for the info.
been investing in this counter since HSH days.
make some money from SSC's share price increase and dvnd... and Cougar also.
I have my most respect to OCK. He has successfully transformed a family runned shipping business to what it is today with 3 listed companies each having a distinct business focus.
I don't see much upside on SSC and Cougar due to their relatively small operation in each of their domain unless they are being sold.
I see that both SSC and Cougar may be target for acquisition by bigger players.
However, the jewel in OCK's porfolio now is Stamford Ld which he has been nurturing it for more than 10 years.
NAV is well above the current share price.
The company has not re-value their hotel assets which were bought at well below current market prices.
I find this counter with much potential similar to Ascott when it was trading at around 80 cts before it reiting.
Eversince it was split from Hai Sun Hup into SSC (Spore Ship) and SLL in 2000, SLL has only paid final divvy.
This is the first time they have paid interim divvy........I concur with you that it is a sign of management's confidence for FY08 results.
Because of Aussie and Kiwi accounting policies, developers can only book revenues and profits when our equivalent of TOP is secured. Furthermore, they are also required to expense S&A (Sales & Advertising) costs up front. As such, profits can be quite lumpy from property development.
Currently, estimated completion of major developments are as follows:
- Albert Residences (apt above the Stamford Htl in Auckland) completion in Sep 2008
- Reynell Building (Residential/retail & commercial) @ The Rocks Sydney completion Jun/Jul 2009
- Commercial Bldg @ St Georges Terrace in Perth completion Jun/Jul2009.
FYI
been tracking this counter for many years.
this company either pay dividends in mid year or full full result announcement.
This time round, they declare dvd in Q3 instead of Q2.
This shows that the mgmt is very confident of their full year results.
Mgmt is also very shrewd from the booking of profits from property developments which they have cleverly timed their completion for the next few years.
Expect the company to continue to announce better earnings report from Property Development and Hotel Management over the next few years.
FY08 year end is 31 Mar 08.........Co already declared interim divvy of 1.5c in Q3 (31 Dec 07). Can expect final divvy with YE results.
Watch out for booking of revenues/profits of new property developments in FY09.
this counter is grossly undervalue and ignored.
NTA reaching 60cts.
Company announce they are looking into Reiting their hotels.
Many of their hotels were bought long time ago at low prices.
this counter has potential to hit $1 just like Ascott if they go for Reits
ChinChye,
Nothing heard, except recent announcement that Tan Chin Nam is appointed independent director.
TCN is currently PS Min of Information, Communication and Arts and Chmn of Media Development Authority. He was ex MD of EDB.
He's generally regarded as a staid civil servant......so I don't think his appointment is the cause of the share price increase.
Probably its due to the market realising that the stock has been oversold and undervalued?
Stock climbing up day by day...
Higher vol these few days...
Got news??
BT 29 Nov 2007
Stamford Land in A$220m Sydney project
Site in The Rocks will have apartment tower, terrace homes, retail units
By CONRAD RAJ
 |
| Mr Ow: Stamford is committed to the upmarket end of the housing market throughout the region |
SINGAPORE-LISTED Stamford Land, the hotel and property arm of shipping tycoon Ow Chio Kiat, is planning to build some of Australia's most expensive homes on the site of two old demolished warehouses and a heritage building.
Mr Ow bought the 99-year leasehold site on Sydney's The Rocks area fronting Gloucester Street and Cumberland Street for A$22 million in June 2004 and is developing a 30-storey building with 122 apartments, five luxury terraces and commercial and retail space, at a total cost of some A$220 million (S$279 million).
Even before the official launch, 55 per cent of the project is said to have been sold, at an average price of just over A$1,000 per square foot (psf).
The 427 square metre penthouse at The Stamford Residences and The Reynell Terraces is expected to fetch A$14 million, which, according to The Daily Telegraph, will beat the A$12 million paid for another apartment at The Bennelong. This would be just short of the record A$16.5 million paid for three adjoining apartments formerly owned by one of Australia's richest men, John Symond, who founded lending giant Aussie Home Loans and who in 2004 had a fortune estimated at A$365 million.
The cheapest apartment, a 62 sq m one-bedroom unit, is expected to go for A$645,000, or about S$1,200 psf - high, but way below the $4,000 psf apartments at Singapore's Orchard Turn are fetching.
A brochure for the project says: 'This unique development will create history as the last grand residential tower permitted in The Rocks - Sydney's first neighbourhood.'
According to The Daily Telegraph, The Stamford Residences is the final tower to be approved under the Sydney Cove Redevelopment Authority Planning Scheme. The scheme allowed for a single tower to be built in each of the six blocks south of the Cahill Expressway as a way to provide funding to upgrade other heritage buildings in The Rocks area.
In the past 25 years, the scheme has resulted in the Four Seasons Hotel, Grosvenor Tower, Quay West Apartments, the Shangri-la Hotel and the Cove Apartments.
The Telegraph quoted National Trust of Australia conservation director Graham Quint as saying: 'We warm to the idea that this is the last large development of this scale and size. You wouldn't want this encroaching further into the heart of The Rocks . . . This sort of thing is the trade-off to protect the rest of The Rocks . . . The area is becoming glitzier and glitzier but people and tourists don't want to see something they can in their own country. You don't want to lose all that character.'
Stamford Land, with a market capitalisation of about $500 million, owns seven of Australia's best hotels and one in New Zealand. It has also gone into the development of high-end property in the two territories, having developed three luxury residential projects in Sydney - Stamford on Kent, 187 Kent, and Stamford Marque.
Besides The Rocks, it has two other residential projects - The Stamford Residences in Auckland and The Stamford Cosmopolitan in Double Bay - and an office tower in Perth under development.
Mr Ow, Stamford Land's executive chairman, told BT: 'Stamford will continue to make its residential developments synonymous with its five-star luxury hotel brand. We are committed to focus on the upmarket end of the housing market throughout the region.'
