by winston » Wed Jan 09, 2013 10:06 am
not vested
Wheelock Properties- Back in the Singapore acquisition scene after a long hiatus.
(WP SP/BUY/S$2.00/Target: S$2.41)
FY12F PE (x): 19.6
FY13F PE (x): 17.2
Bidding for the closely contested Ang Mo Kio site closed yesterday, with Wheelock Properties submitting the highest bid and outbidding 11 other developers.
The 99-year leasehold site can yield about 680 units, and is located opposite to St Nicholas Girls’ School (a short three-minute walking distance to the upcoming Mayflower MRT station on the Thomson line).
A cautiously optimistic bid with RNAV accretion of 6 S cents. We expect the breakeven price for the site to be in the range of S$1,300- 1,350psf and selling prices to be upwards of S$1,500psf for the site.
In our view, these selling prices are achievable, considering the fact that Centro Residences, which is located close to the MRT is currently transacting in the price range of S$1,500-1,700psf, while recent transactions in Thomson Grand (located further away from the MRT) are at S$1,300-1,400psf.
The bid also represents a 7.5% discount to CapitaLand’s recent bid for Bishan site (located one MRT station away). We expect overall net profit of about S$110m and an RNAV accretion of 6 S cents from the project.
Maintain BUY, and increase target price to S$2.41/share (previously S$2.36/share), pegged at a 15% discount to our RNAV of S$2.83/share.
Wheelock’s share price is currently trading at a discount of 22% to its book value and 30% discount to our estimated RNAV. Going forward, we expect the discounts to narrow with Wheelock’s more active participation in the Singapore property market.
Source: UOBKH
It's all about "how much you made when you were right" & "how little you lost when you were wrong"