Wednesday, November 30, 2016

Further Analysis to a Straits Time Article

Just saw this article on Straits Times with the headline, "ABSD deadline fast approaching, but developers stay cool".

Thus, I felt that it is good to find out who are the developers of these properties.

After all, I do have numerous developers in my portfolio (most probably will do an update on my portfolio soon) and hopefully none of the properties belong to the developers I have.

Another reason to list out these developers is to find out who they are and understand what are the various tactics they will take on. These tactics that they take on may positively or negative impact their share prices. This may then lead to opportunities for me to "pound" on.

Some of the tactics we have encountered developers to engage in, in order not to pay ABSD or Qualifying Certificates Charges, are as follows:
- Delisting
- Selling to a Singapore Subsidiary
- Selling to its parent company
- Bulk Sales

As per Straits Time Article
Bartley Ridge - City Developments Ltd

The Trilinq - IOI Properties Group (Parent Company is IOI Corporation Berhad one of Malaysia's biggest conglomerates)

Mon Jervois - Singapore Land Ltd (Parent Company is UIC Ltd)

Eco - Far East Organization, Frasers Centrepoint Ltd and Sekisui House Ltd

Kingsford Hillview Peak - Kingsford Development Pte Ltd (Parent Company is a Hong Kong registered company Kingsford Investments)

Stratum - Elitist Development Pte. Ltd

Vue 8 Residence - Publique Realty (Pasir Ris) Pte Ltd

Pollen & Bleu - Singapore Land Ltd (Parent Company is UIC Ltd)

Sant Ritz - Santarli Realty Pte Ltd (Majority interest from Santarli Group of Companies)

The Siena -  Far East SOHO Pte. Ltd. (Parent Company is Far East Organization)

The Venue Residences - City Developments Ltd

The Crest - Wingcrown Investment Pte Ltd (Jointly developed by WingTai Land, Metro Australia Holdings Pte Ltd & Maxdin Pte Ltd)

The Glades - Sherwood Development Pte Ltd. (Parent Company is Keppel Land)

Sky Vue - Allamanda Residential Development Pte Ltd (Parent Company is CapitaLand Ltd)

Alex Residences - Singapore Land Ltd (Parent Company is UIC Ltd)

My Analysis

This post is mainly for my own knowledge as well and for reference in 2017 for new developers to add into my portfolio. Thus, I will ignore overseas developers and private limited developers listed above,

From the initial view, it seems that UIC Ltd and City Developments Ltd has been appearing more than once. In fact, UIC Ltd has 3 developments listed in the table.

However, the most important thing is to understand the percentage of units that has been sold out and the urgency of selling the remaining units.

Therefore, if I only take the first 3 months of 2017, UIC Ltd seems to be worst hit by the ABSD charges with Mon Jervois at only 58.7% sold.

If the first 6 months in 2017 is to be taken into account, UIC Ltd is, again, the worst hit with Mon Jervois as well as Pollen & Bleu with ONLY 12.3% SOLD!

This is followed by CapitaLand Ltd on the VUE 8 Residences with only 81.9% sold - Although the percentages seem high, but it remains 84 units yet to be sold.

In Short

This is not the first time I have talked about UIC Ltd. It is currently a deep value stock. It will be interesting to see what it will do to "escape" these charges and how it will affect its ultimate parent companies, UOB Kay Hian, UOL and UOB.

For those who are interested in the Enhanced Triple S Scorecard, do not hesitate to contact me directly.

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4 comments:

  1. Hi TUB
    Thanks for this article.
    UIC does look like it's in trouble. I visited the Pollen & Bleu showflat some time ago, (not as an investor but as a potential buyer), it looks like the demand is really poor. I think there is very little appetite for the CCR, particularly the new developments which have high end finishings and are targeted at the upper-mid segment and above.
    A large part of this segment already own a place for their own stay, so investment demand used to form a sizable part of this segment, and we all know the investing climate for this has soured.
    The only segment still holding up the overall markets are the OCR, mass market segments where there's still real, owner occupied demand.

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    Replies
    1. Hi TTI,

      Thanks for stopping by again.

      Glad that this article is of help to you.

      Use this as a piece of information to grab cheap potential buys in stocks and in property!

      Then 2 years later, you can resell it for great profit, Hopefully!

      Regards,
      TUB

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  2. Lol TUB...
    I'm not sure even now, it's considered "cheap"
    And I'm not sure if can resell in just 2 yrs.
    If just 2 yrs, will get hit by ABSD too, so highly unlikely it'll be profitable

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    Replies
    1. Ops.... Then better use the cash on equity. With your investment ability, I believe you can make better gains there!

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