not vested
After a long hiatus from land purchases, Wheelock Properties yesterday announced that it has successfully clinched a leasehold 99-year residential site at Ang Mo Kio Ave 2 for S$550m.
The site, located next to St Nicholas Girls' School and the future Mayflower MRT station with an allowable gross floor area of 696,302 sf, attracted a total of 12 bids.
Wheelock’s tender price works out to S$790 psf ppr and we estimate a $0.15/share accretion to NAV assuming breakeven of $1,250 psf and a selling price of $1500-1600 psf.
This site acquisition is timely, given the group’s depleting landbank in Singapore, currently
comprising of Ardmore Three and unsold units at Scotts Square. It also signals a broadening of the group’s focus on the prime residential districts to strategically located leasehold sites in suburban locations.
Flushed with cash from the progressive collection of sale proceeds of Scotts Square, Wheelock’s cash position swelled to over S$1b earlier last year. It has since deployed over $300m to invest in financial assets and recently raised its stake in SC Global from 16.07%
to 17.9% through open market purchases.
We believe more active deployment of its capital could serve to narrow the stock’s current discount of 29% from its NAV of $2.86/share.
Source: DMG