Low Keng Huat profit down 76%
By TETTYANA JASLI
PROPERTY firm Low Keng Huat (Singapore) yesterday reported a 76 per cent fall in net profit for the year ended Jan 31, 2007 - but only because there was no one-time gains.
Net profit came to $13.1 million, down from $54.6 million the previous year where there was one-off pre-tax gains of $68.3 million from the sale of assets.
The company said yesterday that if one-time gains were excluded, and notwithstanding a smaller asset base, net profit rose 90 per cent from $6.9 million previously.
An increase in revenue to $117.3 million from $106.2 million previously was largely due to higher contribution from construction jobs in progress. This more than offset the absence of contribution from four hotels sold in the second half of the year ended Dec 31, 2006.
Earnings per share came to 10.67 cents, down from 44.42 cents a year earlier.
The group said that the construction industry will remain competitive. It has a number of projects in hand in which it has an equity interest, and will seek new projects that are reasonably priced.
Its current development projects include a luxury condominium in Duchess Avenue to be launched in mid-2007 and a high-end service apartment development near the Kuala Lumpur City Centre to be launched later this year. These projects are expected to contribute to profit in the next few years.
The group is also looking to ride on the growing Malaysian economy and the Iskandar Development Region and is expanding its land portfolio in south Johor for future development.
The group has declared a first and final cash dividend of 2.5 cents per ordinary share less tax. It has also proposed a special cash dividend of 90 cents per ordinary share less tax.
Yesterday, it also proposed a 2-for-1 rights issue of up to 246.27 million new shares at an issue price of 36.9 cents. This represents a discount of 82 per cent to Monday's closing price of $2.05 per share on the Singapore Exchange.
The group has appointed UOB Asia the manager for the rights issue.
The issue is aimed at strengthening the group's capital base after payment of the special dividend that passes on Section 44A tax credits to shareholders.
Assuming the special dividend is used to subscribe for the rights shares, the rights issue will in effect transform this portion of retained profits into paid-up capital.
Thursday, March 29, 2007
Wing Tai lining up 3 new launches
Wing Tai lining up 3 new launches
WING Tai Asia will roll out at least three new residential launches over the next few months including two on recently acquired collective sale sites.
Riverine by the Park: Set for April launch. On pricing, Wing Tai plans to take its cue from new projects nearby
Helios Residences on the former Phoenix Mansion site at Cairnhill Circle will be launched in May while the yet-to-be-named development on the former Belle Vue site at Oxley Walk will be launched in July.
The third development will be The Riverine by the Park on Kallang Road, to be launched in April.
Wing Tai deputy chairman Edmund Cheng would not reveal launch prices but said that it would take its 'cue' from new properties in the same vicinity.
Wing Tai bought Phoenix Mansion for $57.9 million or $716 per square foot per plot ratio (psf ppr) in July 2005 and Belle Vue for $227.3 million or $665.95 psf ppr three months later.
Although it has helped to boost the collective sales market here - with the $1,369 psf ppr price it paid for Ardmore Point in October last year, and more recently paying $1,650 psf ppr for Anderson 18 (with City Developments) - Wing Tai does feel that owners' price expectations for collective sale sites are getting quite high.
'They are asking for prices that are higher than what developers are selling,' said Mr Cheng. 'I think they have to be a bit realistic also,' he added.
Still, as Mr Cheng conceded, the sentiment in the market is, 'good'. 'The market is strong and economic growth is there. Singapore is transforming from a local to a global market, so of course your asset will have a global value,' he added.
On future acquisitions, Mr Cheng said: 'We will continue to see how the market develops. If the market continues to be strong, we will respond and consider if there is economic viability or not.'
Wing Tai does already have a sizeable stable of new products. In April 2006, it acquired a large development site with NTUC Choice Homes in Tanah Merah and Mr Cheng says that this development, which will have around 500-units, will also be launched this year.
The new development on the site of Newton Meadows, acquired in May 2006, could also be launched this year, he said.
In the 'super, super luxury' segment, Wing Tai is expected to launch the new developments at Ardmore Point and Anderson 18 early next year. These will be two separate developments, Mr Cheng said, quelling speculation that both sites could be amalgamated.
Other high-end products that Wing Tai has on the market include The Light @ Cairnhill and VisionCrest Residences. The former is almost fully sold while the latter is more than 50 per cent sold. For its high-end developments, foreigners make up about 50 per cent of the buyers, Mr Cheng revealed.
WING Tai Asia will roll out at least three new residential launches over the next few months including two on recently acquired collective sale sites.
Riverine by the Park: Set for April launch. On pricing, Wing Tai plans to take its cue from new projects nearby
Helios Residences on the former Phoenix Mansion site at Cairnhill Circle will be launched in May while the yet-to-be-named development on the former Belle Vue site at Oxley Walk will be launched in July.
The third development will be The Riverine by the Park on Kallang Road, to be launched in April.
Wing Tai deputy chairman Edmund Cheng would not reveal launch prices but said that it would take its 'cue' from new properties in the same vicinity.
Wing Tai bought Phoenix Mansion for $57.9 million or $716 per square foot per plot ratio (psf ppr) in July 2005 and Belle Vue for $227.3 million or $665.95 psf ppr three months later.
Although it has helped to boost the collective sales market here - with the $1,369 psf ppr price it paid for Ardmore Point in October last year, and more recently paying $1,650 psf ppr for Anderson 18 (with City Developments) - Wing Tai does feel that owners' price expectations for collective sale sites are getting quite high.
'They are asking for prices that are higher than what developers are selling,' said Mr Cheng. 'I think they have to be a bit realistic also,' he added.
Still, as Mr Cheng conceded, the sentiment in the market is, 'good'. 'The market is strong and economic growth is there. Singapore is transforming from a local to a global market, so of course your asset will have a global value,' he added.
On future acquisitions, Mr Cheng said: 'We will continue to see how the market develops. If the market continues to be strong, we will respond and consider if there is economic viability or not.'
Wing Tai does already have a sizeable stable of new products. In April 2006, it acquired a large development site with NTUC Choice Homes in Tanah Merah and Mr Cheng says that this development, which will have around 500-units, will also be launched this year.
The new development on the site of Newton Meadows, acquired in May 2006, could also be launched this year, he said.
In the 'super, super luxury' segment, Wing Tai is expected to launch the new developments at Ardmore Point and Anderson 18 early next year. These will be two separate developments, Mr Cheng said, quelling speculation that both sites could be amalgamated.
Other high-end products that Wing Tai has on the market include The Light @ Cairnhill and VisionCrest Residences. The former is almost fully sold while the latter is more than 50 per cent sold. For its high-end developments, foreigners make up about 50 per cent of the buyers, Mr Cheng revealed.
Wednesday, March 28, 2007
Survey: House moving costs up 225 percent in a decade by Elaine Frei
Survey: House moving costs up 225 percent in a decade by Elaine Frei
Filed under: Property, News
Survey: House moving costs up 225 percent in a decade
According to a new survey from Propertyfinder, it will cost you an average of 225 percent more to move house in the UK now than it did ten years ago. The exact amount will vary depending on where in the UK you have bought your new home, but on average the cost of moving house now stands at around £9,500, according to the website. The highest cost of moving comes in London, where it will cost around £16,242, a gain of 366 percent over a decade ago. The smallest hike in moving costs came in the North West, at 131 percent, for an average cost of £6,510.
The biggest cost in moving home comes from stamp duties, which have gone up to an average of £5,481, a rise of 527 percent in a decade. In London, the average stamp duty now comes to £11,766, and even in the North West the average stands at £2,033. A decade ago, the average for England and Wales was just £679, when the stamp duty was at 1 percent on properties sold for over £60,000, and many buyers did not have to pay at all, as the average house price in 1996 was at £64,441, compared to current averages that stand at over £200,000. Other costs include lawyers fees, agents fees, and removal costs.
Filed under: Property, News
Survey: House moving costs up 225 percent in a decade
According to a new survey from Propertyfinder, it will cost you an average of 225 percent more to move house in the UK now than it did ten years ago. The exact amount will vary depending on where in the UK you have bought your new home, but on average the cost of moving house now stands at around £9,500, according to the website. The highest cost of moving comes in London, where it will cost around £16,242, a gain of 366 percent over a decade ago. The smallest hike in moving costs came in the North West, at 131 percent, for an average cost of £6,510.
The biggest cost in moving home comes from stamp duties, which have gone up to an average of £5,481, a rise of 527 percent in a decade. In London, the average stamp duty now comes to £11,766, and even in the North West the average stands at £2,033. A decade ago, the average for England and Wales was just £679, when the stamp duty was at 1 percent on properties sold for over £60,000, and many buyers did not have to pay at all, as the average house price in 1996 was at £64,441, compared to current averages that stand at over £200,000. Other costs include lawyers fees, agents fees, and removal costs.
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