Last Friday evening, it was reported that Mr Koh Wee Meng, Chairman and CEO of the Fragrance Group, brought his shareholdings of Tuan Sing from 4.46% to 5.02% via share purchases in the open market, making him a substantial shareholder. Mr Koh had purchased, from the open market on 25 Sep 2014, 6.5m shares at an average price of S$0.432 per share. Tuan Sing is a real estate developer with assets in Singapore, China and Australia, and the group also recently acquired the remaining 50% interests, that it did not already own, in two five-star hotels in Australia, namely Grand Hyatt Melbourne and Hyatt Regency Perth, for A$126m. The group is currently controlled by the Liem family, who owns at least 53.5% collectively, and we highlight that it remains speculative as to what Mr Koh’s intentions are. After this news, Tuan Sing shares soared to a 5-year high yesterday, closing at S$0.455 per share with 26m shares traded (~5.5% of float). This closing price represents a still-significant 30.1% discount to Tuan Sing’s book value of S$0.651 per share, which is broadly in line with comparable peers currently trading at an average discount of 27.7%. We currently have do not have a rating on Tuan Sing.
A significant shareholder emerges
Last Friday evening, it was reported that Mr Koh Wee Meng, Chairman and CEO of the Fragrance Group, brought his shareholdings of Tuan Sing from 4.46% to 5.02% via share purchases in the open market, making him a substantial shareholder. Mr Koh had purchased, from the open market on 25 Sep 2014, 6.5m shares at an average price of S$0.432 per share. After this news, Tuan Sing shares soared to a 5-year high yesterday, closing at S$0.455 per share with 26m shares traded (~5.5% of float). While this closing price represents a still-significant 30.1% discount to Tuan Sing’s book value of S$0.651 per share, we also note this is broadly in line with comparable peers currently trading at an average discount of 27.7%
Recently acquired remaining interests in two 5-star AZ hotels
Tuan Sing is a real estate developer with assets in Singapore, Australia and China. Its residential developments in Singapore include projects such as Sennett Residences (91% sold as at end 2Q14), Cluny Park Residences (33% sold) and Seletar Park Residence (95% sold). Commercial projects include Robinson Tower (currently under redevelopment), Robinson Point and also Century Warehouse. In Sep 2014, Tuan Sing also recently acquired the remaining 50% interests, that it did not already own, in two five-star hotels in Australia, namely Grand Hyatt Melbourne and Hyatt Regency Perth, for A$126m.
Australian assets could be particularly attractive
Tuan Sing is currently controlled by the Liem family, who owns at least 53.5% collectively, and we highlight that it remains speculative as to what Mr Koh’s intentions are. That said, we note that Mr Koh, a seasoned real estate developer, has publicly indicated his plans for expansion in Australia following the slowdown in the Singapore residential market, and his company Fragrance Group has also recently proposed plans to spin-off its property business in Australia on the Catalist board. As such, in addition to Tuan Sing’s attractive valuation, its two prime hotels in Melbourne and Perth could be of special interest to Mr Koh. We currently do not have a rating on Tuan Sing.
Last Friday evening, it was reported that Mr Koh Wee Meng, Chairman and CEO of the Fragrance Group, brought his shareholdings of Tuan Sing from 4.46% to 5.02% via share purchases in the open market, making him a substantial shareholder. Mr Koh had purchased, from the open market on 25 Sep 2014, 6.5m shares at an average price of S$0.432 per share. After this news, Tuan Sing shares soared to a 5-year high yesterday, closing at S$0.455 per share with 26m shares traded (~5.5% of float). While this closing price represents a still-significant 30.1% discount to Tuan Sing’s book value of S$0.651 per share, we also note this is broadly in line with comparable peers currently trading at an average discount of 27.7%
Recently acquired remaining interests in two 5-star AZ hotels
Tuan Sing is a real estate developer with assets in Singapore, Australia and China. Its residential developments in Singapore include projects such as Sennett Residences (91% sold as at end 2Q14), Cluny Park Residences (33% sold) and Seletar Park Residence (95% sold). Commercial projects include Robinson Tower (currently under redevelopment), Robinson Point and also Century Warehouse. In Sep 2014, Tuan Sing also recently acquired the remaining 50% interests, that it did not already own, in two five-star hotels in Australia, namely Grand Hyatt Melbourne and Hyatt Regency Perth, for A$126m.
Australian assets could be particularly attractive
Tuan Sing is currently controlled by the Liem family, who owns at least 53.5% collectively, and we highlight that it remains speculative as to what Mr Koh’s intentions are. That said, we note that Mr Koh, a seasoned real estate developer, has publicly indicated his plans for expansion in Australia following the slowdown in the Singapore residential market, and his company Fragrance Group has also recently proposed plans to spin-off its property business in Australia on the Catalist board. As such, in addition to Tuan Sing’s attractive valuation, its two prime hotels in Melbourne and Perth could be of special interest to Mr Koh. We currently do not have a rating on Tuan Sing.
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