not vested
Bukit Sembawang stirs interest as it moves to unlock land value By Zavier Ong
SINGAPORE (Aug 19): Luxury residential property developer Bukit Sembawang Estates is moving to unlock value for its shareholders by converting some
agricultural land into residential properties, while
resolving a dispute with the Singapore Land Authority (SLA) that dates as far back as 2002.
In its annual report for FY2016 ended March, released on July 8, the company said that it is surrendering its 999-year lease on Lot 12949 MK18, an agricultural land, to receive a 99-year lease with no building restrictions, on which to build a residential development.
Lot 12949A MK18 is located
along Nim Road, Ang Mo Kio Avenue 5 and the Central Expressway. The site has an area of 117,000 sqm. Bukit Sembawang has said that it intends to build
167 units of landed houses on part of the plot.
Of course, Bukit Sembawang has more going for it than just the Lot 12949A MK18 land. The company sits on a large land bank, a legacy of its agricultural history, but has tended to move slowly to monetise the value of its land, leading investors to undervalue its shares.
Partly owned by Oversea-Chinese Banking Corp’s Lee family, Bukit Sembawang started life as a rubber planter in 1911. In the 1950s, it began diversifying into development of landed properties by converting its agricultural land into residential developments, and it was listed in 1968.
Since then, Bukit Sembawang shares have gone in and out of favour with investors.
Now, thanks partly to the announcement that it is closer to starting development on a new parcel of land, trading in the stock has been more active over the past month.
Even so, it is still trading below its
NTA as at June 30 of $5.09 per share. And, if investors had factored in potential earnings from the plot that is being converted, the stock could have been even more undervalued.
Source: The Edge
http://smr.theedgemarkets.com/article/b ... a-87358173
It's all about "how much you made when you were right" & "how little you lost when you were wrong"