Heeton

Heeton

Postby ichew » Fri Jan 15, 2010 11:32 am

just sharing some notes here ...
not vested.

from sale of 5 wet mkts to sheng siong circular dtd 11nov09

sales of 5 wet mkt for $25.55m
(open mkt value = $29.2m, heeton selling at deficit 13%)

this disposal will generate surplus cash of abt $15m ($0.067 cash per sh) after paying off loans etc
will be used for working capital.
no mention of returning as div.

from 3Q09

NAV = $0.77
num of sh = 223,846,00
equity = 173,824,000

investment prop = 238.5m
devlpt prop = $259.569m
debt = 347.08m => d/e = 1.99! but i guess if they r able to survive last yr, they shld be able to survive moving fwd?

cash + fd = 17.421m = $0.077 cash per sh
but pg 4 showed they have bank overdrafts + fd pledged.
thus reducing cash + cash equivalents to $291,000 only
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Re: Heeton

Postby qxing78 » Tue Mar 16, 2010 12:38 pm

Sun Plaza goes on the market for over $300m
Investment buzz in shopping centre scene; Alpha takes stake in Katong Mall

Published March 11, 2010
By KALPANA RASHIWALA
THE shopping centre investment scene seems to be abuzz. At least one property is being put on the market officially.

Hopeful: Currently, the average gross monthly rental for Sun Plaza is said to be about $8 psf but market watchers reckon that through asset enhancement works and improving tenant mix, it might be possible to raise this figure to $12-14 psf
Sun Plaza, located between Sembawang MRT station and bus interchange, will be marketed through an expression of interest exercise.

The asking price for the 11-year-old mall, owned by Heeton Holdings and Koh Brothers, is understood to be in excess of $300 million or $2,000 per square foot (psf) of net lettable area.
The mall has seven levels, two of which are basement floors, and offers scope for asset enhancement work and repositioning to boost yields.

Meanwhile, over in the Katong area, a fund managed by Alpha Investment Partners is said to have taken a majority stake, believed to be around 70 per cent, in the consortium that bought Katong Mall late last year for $247.6 million.

The consortium, originated by former CapitaMalls Trust chief executive Pua Seck Guan, also includes China-based retailer Beijing Hualian Group and BreadTalk Group.

Katong Mall, located at the corner of East Coast and Joo Chiat roads, will be revamped and its net lettable area boosted by about 20 per cent.

Alpha, Keppel Land's fund management unit, has also been active in other segments of the property market. Another of its funds controls 90 per cent of a company that owns the newly spruced-up office block at Cecil Street known as The Spazio (formerly Dapenso Building).

In Shanghai, Alpha is expected to bag an upscale service apartment block from Morgan Stanley Real Estate in a transaction estimated at about 900 million yuan (S$184 million).

Over in Singapore's Sembawang area, CB Richard Ellis is handling the expression of interest exercise for Sun Plaza.

The property has been built to its maximum plot ratio; hence, it is being pitched for its asset enhancement potential.

For instance, a community library on the third level could be moved to a higher level with the library space decanted to create higher-value retail / restaurant space, for example, in basement 1.

As well, a cineplex on the fourth and fifth levels that was formerly operated by Eng Wah has been left vacant, presenting an opportunity for a new investor to reconfigure the space into smaller lots for lease to higher-paying tenants.

Sun Plaza's retail area is spread across six levels, including basement 1. Basement 2 is occupied by 260 carpark lots.

Currently, the average gross monthly rental for the mall is said to be about $8 per square foot but market watchers reckon that through asset enhancement works and improving tenant mix, it might be possible to raise this figure to $12-14 psf.

Sun Plaza is on a site with a remaining lease term of about 85 years. Tenants include NTUC FairPrice, Yamaha Music School, Taka Jewellery and Kopitiam.

Above Sun Plaza are 76 apartments which were sold by the developers years ago.
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Re: Heeton

Postby qxing78 » Tue Mar 16, 2010 12:51 pm

Vested small small.
Some notes:-
1) NAV is now S$0.81, but share price only S$0.46
2) NAV still have not include wet market proceeeds.
3) Heeton/Koh Brothers(50% each) are going to make big bucks on freehold luxury condo project-The Lumos. If I am not mistaken, their land cost is only S$900psf or so.
4) If Sun Plaza sales goes through, probably Heeton will be in Net Cash position. They are likely reap huge one time profit as well.
Given the good location of Sun Plaza (next to MRT), I think there will be some interest in it, esp from players like Cap Mall Trust.
I believe Sembawang's population will grow in the future as well.
Anybody living near Sembawang??
If Sun Plaza is sold at S$300 mil, Heeton will get S$150 mil (50%)
Heeton has 223.8 mil shares in total,
So equivalent to S$0.67/share!!!
5) Heeton (45%) has another freehold JV project at Killiney Road, which I feel their cost price is quite reasonable, S$1080psf (exclude devt charge).
6) Tan Kim Seng (respectable investor) owns 6.7% in this developer. His cost price is S$0.33
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Re: Heeton

Postby Blackjack » Tue Mar 16, 2010 9:34 pm

Seems interesting. Maybe will have bumper dividends.

Not vested
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Re: Heeton

Postby ichew » Fri Mar 19, 2010 4:13 pm

question now is will Sun Plaza be sold? And at what price?
How's CBRE record in mktg such deals?

anyway let's look at other recent txns

Clementi Mall = $2,014psf
from SGX-SPH announcement dtd 17nov09, they paid $541.898m/269k sf or $2,014psf
add abt $100psf++ for additional fit-out costs

Northpoint 2 = S$1,923psf
from SGX-FCT ann dtd Jan10, they paid $164.55m/ 85,550sf or $1923psf
99yr from 01apr1990

YewTee Point = S$1,736psf
from SGX-FCT ann dtd Jan10, they paid $125.65m/ 72,382sf or $1736psf
99yr from 03jan2006

According to UOBKayHian report, Katong Mall sold $247.55m at S$1,438psf ppr (left with 70yr lease).
I cant find the report so my estimate is 248m / 78,158sf x 3.6 plot ratio = $881 psf ppr

from above, i'd say they just might find someone willing to pay $300m minus minus for it

these type of deals take abt 3-6mths.
let's keep out eyes open for more details
anyone has frens working in CBRE :P ?
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Re: Heeton

Postby qxing78 » Sat Mar 20, 2010 11:27 am

Sembawang is rather far from town, and with new HDB flats around that area (note that new HDB BTO projects are in Sembawang too), the mall will attract growing no. of shoppers.

However, my colleague who is staying around Sembawang did comment that Sun Plaza looks a bit like the malls in Batam. A little dull and unattractive compared to Causeway point. So the new buyer may have some upgrading work to do.
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Re: Heeton

Postby kennynah » Sat Mar 20, 2010 11:32 am

qxing78

your avatar looks like the "Golden Compass"

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Re: Heeton

Postby millionairemind » Sat Mar 20, 2010 12:20 pm

qxing78 wrote:Sembawang is rather far from town, and with new HDB flats around that area (note that new HDB BTO projects are in Sembawang too), the mall will attract growing no. of shoppers.

However, my colleague who is staying around Sembawang did comment that Sun Plaza looks a bit like the malls in Batam. A little dull and unattractive compared to Causeway point. So the new buyer may have some upgrading work to do.


Considering the malls in the northern part of Singapore - Sun Plaza@Sembawang, NorthPt@Yishun, Causeway Point@Woodlands and Lot1@CCK, Sun Plaza would probably rate the lowest in terms of both quality and quantity of it's tenants. Hence, the human traffic that it commands is also the lowest among the 4 malls.

It is also the smallest in terms of size among the four malls.
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Re: Heeton

Postby BlackCat » Sat Mar 20, 2010 10:59 pm

Sun Plaza is like a neighbourhood shopping mall. Not big enough to attract crowds from further away. Northpoint, only one MRT stn away, has a lot larger and diverse crowd (families, plus young people), far more places to eat/shop, etc. Its in a different league.

I was at Sun Plaza last weekend. It feels old. The crowd there looks like heartlanders/families. Some shops there are unchanged from 7 years ago. The cinema is gone. Half the stalls from the foodcourt were gone (not vacant... gone...possibly for renovations, I'm not sure), and there was one vacant stall. The library is now tiny compared to Yishun/Woodlands. Half the shops there (MacDonalds, pastamania, Hong Kong Cafe, coffee bean, Bata) are duplicated at Yishun.

I don't see how they can attract traffic from outside their cachement area unless they get a good anchor tennant (... to replace the cinema...no idea what tennant that could be).... and/or they are able to physically expand to create the scale needed... and I think they need more than 20%.
I wait until there is money lying in the corner, and all I have to do is go over there and pick it up.
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Re: Heeton

Postby qxing78 » Sun Mar 21, 2010 10:48 am

Ya, agree that Sun Plaza should be rated the lowest among the malls in the North.
Only selling point is that Sun Plaza is sitting besides MRT station.
I think a lot has to do with the mall manager/management.
Koh Bros/Heeton who has only 1 mall may not have much bargaining power with tenants or enough resources.
In this business, I think Capital Mall, F&N and Guthrie/Asia Malls are better.
Even Far East is not very good in mall management, just looked at Central@Clarke Quay, Orchard Central and Square2.
Far East's mall design is not very shopper friendly.
City Dev is not very strong in shopping malls, but their main mall is now City Square.
Whereas ION, Plaza Sing and Jurong Point are always so happening.
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