Research from SooChow CSSD Capital Markets (Asia), SCCM Asia Research

SCCM Asia Research

Research from SooChow CSSD Capital Markets (Asia)

Headquartered in Singapore, SooChow CSSD Capital Markets (Asia) is an investment bank focusing on emerging growth companies across Asia, providing a full suite of investment banking services, including corporate finance, mergers and acquisitions advisory, equity capital markets, institutional equities sales and trading and equities research.

SooChow CSSD Capital Markets (Asia)

Thematic (Sector/Industry)

<ul><li><a href="https://www.smartkarma.com/entities/oxley-holdings-ltd" target="_blank" data-smartkarma-citation="entities:1097" rel="noopener">Oxley Holdings (OHL SP)</a> has sold ~95% of its Singapore residential units</li><li><a href="https://www.smartkarma.com/entities/singhaiyi-group-ltd" target="_blank" data-smartkarma-citation="entities:19307" rel="noopener">Singhaiyi (SHG SP)</a> plans to delist from SGX - As at 16Dec21, the total number of Offer Shares owned, controlled or agreed to be acquired by Haiyi Treasure Ltd amounted to an aggregate of 4,035m Offer Shares, representing approximately 95.81% of the total number of issued Offer Shares</li><li>Bukit Timah condo Perfect Ten offers 5% discount during cooling measures</li></ul>

Oxley Holdings (OHL SP) has sold ~95% of its Singapore residential unitsSinghaiyi (SHG SP) plans to delist from SGX - As at 16Dec21, the total number of Offer Shares owned, controlled or agreed to be acquired by Haiyi Treasure Ltd amounted to an aggregate of 4,035m Offer Shares, representing approximately 95.81% of the total number of issued Offer SharesBukit Timah condo Perfect Ten offers 5% discount during cooling measures

ASEAN Builder's Scoop (17Dec21) - OHL Sold ~95% of SG Resi Units

<h2>Singapore</h2><h3>IOI Properties (IOIPG MK) S$1.508bn sole bid for Marina View white site</h3><p>The white site along Marina View earmarked largely for private residences and hotel use drew just one bid at tender at S$1.508bn or S$1,379psf per plot ratio from a wholly-owned unit of IOIPG, and was just S$101 more than the price at which the group successfully applied for the site to be released from the reserve list of the 1H21 GLS Programme. The 0.78ha (about 84,000sqft) site can generate a maximum GFA of 1.09m sqft. Of this, at least 548,959sqft has to be for residential use and at least 279,861sqft for hotel use. The project can have up to 21,528sqft for optional office space and up to 21,528sqft of space for other commercial uses (including retail and F&amp;B). Most developers may have been put off by the huge total development cost, which a veteran developer estimates at S$2.3bn. Moreover, the development period for the Marina View site is likely to be longer than usual. The URA has stipulated a seven-year project completion period, compared with the usual five years for a typical residential development site.</p>

SingaporeIOI Properties (IOIPG MK) S$1.508bn sole bid for Marina View white siteThe white site along Marina View earmarked largely for private residences and hotel use drew just one bid at tender at S$1.508bn or S$1,379psf per plot ratio from a wholly-owned unit of IOIPG, and was just S$101 more than the price at which the group successfully applied for the site to be released from the reserve list of the 1H21 GLS Programme. The 0.78ha (about 84,000sqft) site can generate a maximum GFA of 1.09m sqft. Of this, at least 548,959sqft has to be for residential use and at least 279,861sqft for hotel use. The project can have up to 21,528sqft for optional office space and up to 21,528sqft of space for other commercial uses (including retail and F&amp;B). Most developers may have been put off by the huge total development cost, which a veteran developer estimates at S$2.3bn. Moreover, the development period for the Marina View site is likely to be longer than usual. The URA has stipulated a seven-year project completion period, compared with the usual five years for a typical residential development site.

External broker reports(aggregated public sources), TA Securities Holdings Berhad

TA Securities Holdings Bhd

External broker reports(aggregated public sources)

Equity Bottom-Up

<div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

<h2>Singapore</h2><h3><a href="https://www.smartkarma.com/entities/esr-reit" target="_blank" data-smartkarma-citation="entities:10934" rel="noopener">ESR-REIT (EREIT SP)</a> to divest non-core industrial building for S$11.1m; 8% premium to book value (BUY; TP S$0.48/unit)</h3><ul><li>EREIT has entered into an agreement to divest an industrial building, 45 Changi South Avenue 2, for S$11.1m, a 7.8% premium to the property's independent valuation of S$10.3m</li><li>The net proceeds will be used to repay outstanding borrowings, finance upcoming asset enhancements and/or fund general working capital requirements. The divestment represents an opportunity for EREIT to divest one of their non-core assets at a premium to book value</li><li>The four-storey general industrial building has a GFA of 73,684sqft.</li></ul><p>Comments: Following the divestment of two assets in Apr21, EREIT continued to review its portfolio and divesting non-core assets. The multi-tenanted general industrial building contributed S$0.5m (or 0.2%) to EREIT’s FY20 Revenue and accounts for 0.7% of FY20 NAV. Assuming a 71.4% NPI margin (based on FY20 NPI Margin), the divestment yield would be 3.22%. The capital recycled into AEIs would lift future DPU (expected to return yield to cost of c.7-9%), if not maintained, should the proceeds are used to pare down debt (avg. cost of debt of 3.24%). The Sale Consideration also represents 33.7% higher than its purchase price of S$8.3m (acquired in 25Jul06). We have a BUY rating with TP of S$0.48/Unit.</p>

SingaporeESR-REIT (EREIT SP) to divest non-core industrial building for S$11.1m; 8% premium to book value (BUY; TP S$0.48/unit)EREIT has entered into an agreement to divest an industrial building, 45 Changi South Avenue 2, for S$11.1m, a 7.8% premium to the property's independent valuation of S$10.3mThe net proceeds will be used to repay outstanding borrowings, finance upcoming asset enhancements and/or fund general working capital requirements. The divestment represents an opportunity for EREIT to divest one of their non-core assets at a premium to book valueThe four-storey general industrial building has a GFA of 73,684sqft.Comments: Following the divestment of two assets in Apr21, EREIT continued to review its portfolio and divesting non-core assets. The multi-tenanted general industrial building contributed S$0.5m (or 0.2%) to EREIT’s FY20 Revenue and accounts for 0.7% of FY20 NAV. Assuming a 71.4% NPI margin (based on FY20 NPI Margin), the divestment yield would be 3.22%. The capital recycled into AEIs would lift future DPU (expected to return yield to cost of c.7-9%), if not maintained, should the proceeds are used to pare down debt (avg. cost of debt of 3.24%). The Sale Consideration also represents 33.7% higher than its purchase price of S$8.3m (acquired in 25Jul06). We have a BUY rating with TP of S$0.48/Unit.

Malaysia

Mah Sing Group Berhad is a property developer. The Company's principal activity is in property development where the group develops commercial, residential (both high-rise and landed) as well as industrial properties. The Group is also involved in plastic manufacturing manufacturing and trading in Malaysia and Indonesia.

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Mah Sing Group (MSGB MK)

ASEAN Builder's Scoop (17Dec21) - OHL Sold ~95% of SG Resi Units

OHL sold ~95% of SG resi units; SHG plans to delist; Perfect Ten offers 5% disc amidst cooling measures; MREIT details asset infusion; CPG new...

SCCM Asia Research

ASEAN Builder's Scoop (22Sep21)

IOIPG sole bid for Marina View white site; OHL divests Sydney CBD land parcels; MSGB focuses on affordable homes; Phils demand for large condo...

SCCM Asia Research

Stronger Earnings Ahead

Buy Mah Sing Group Berhad: Stronger Earnings Ahead. - By: TA Securities Holdings Bhd

TA Securities Holdings Bhd

ASEAN Builder's Scoop (31Aug21)

EREIT non-core divestment continues; Park Hotel group losses CQ hotel mgmt; Mapletree expands UK student accommodation assets; AREIT growing AUM;...

SCCM Asia Research

Impacted by Tighter Lockdown Measures

Buy Mah Sing Group Berhad: Impacted by Tighter Lockdown Measures. - By: TA Securities Holdings Bhd

TA Securities Holdings Bhd

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