View Full Version : Loft@Holland
Loft@Holland units snapped up
Updated 11:12 AM Jan 14, 2011
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SINGAPORE - Only hours before the Government announced its latest round of cooling measures for the property market, buyers had snapped up all the units available at the Loft@Holland, Oxley Holdings' latest "shoebox'' residential project.
The property developer said all its 41 units were sold within two hours at its soft launch yesterday. Demand was so strong that all, but two units, in the development needed balloting to be conducted.
"On average, there were about three interested buyers per unit," Oxley said.
The units were sold at between $1,630 to $2,166 per sq ft, and most of the buyers were mainly locals, the company said.
Oxley chairman and chief executive officer Ching Chiat Kwong said: "The market's overwhelming response to our latest projects is extremely encouraging."
The five-storey development which is located at 151, Holland Road, comprises 37 one-bedroom units, ranging from 323 sq ft to 484 sq ft, and four two-bedroom penthouses with private jacuzzis, ranging from 980 sq ft to 1,141 sq ft.
It also has common facilities that include a basement carpark, a swimming pool and a gymnasium.
Analysts believe that the main attraction of the property is its prime location, which puts it in close proximity to the proposed Holland Village MRT Station and nearby Holland Village Shopping Centre.
It is also close to renowned schools like Henry Park Primary School, Nanyang Primary School, and Hwa Chong Institution.
Any comments about this sold-out 40-unit MM project with the latest series of measures kicking in?
Limited capital gain upside but definitely good rental once TOP.
What is the rental we are looking at for a typical MM unit of 323sqft at Loft@Holland? Apparently such unit cost around 700k? What % rental yield are we looking at here considering that there are limited upside to flip witht the new stamp duties measures introduced. The project is slated to TOP in 2015, so no rental from now till then.
devilplate
16-01-11, 08:53
What is the rental we are looking at for a typical MM unit of 323sqft at Loft@Holland? Apparently such unit cost around 700k? What % rental yield are we looking at here considering that there are limited upside to flip witht the new stamp duties measures introduced. The project is slated to TOP in 2015, so no rental from now till then.
dun like MM....jus buy bigger unit lor....some say 10-20% drop wor....of coz hoot big units going forward....2milppty...drop 10%...200k savings liao....who cares about MMs now...haha
Despite a good address and its close proximity to the new MRT station, I doubt this is for own stay. It is so tiny. Maybe we can call it a high-class motel-apartment.
dun like MM....jus buy bigger unit lor....some say 10-20% drop wor....of coz hoot big units going forward....2milppty...drop 10%...200k savings liao....who cares about MMs now...haha
For what purpose? Like in high-class luxury Hotel 81? :confused:
Despite a good address and its close proximity to the new MRT station, I doubt this is for own stay. It is so tiny. Maybe we can call it a high-class motel-apartment.
So totally no upside for capital appreciation for this sold-out 40 unit project in a superb high class location? How much can rental for a 323sqft unit fetch?
devilplate
16-01-11, 15:36
So totally no upside for capital appreciation for this sold-out 40 unit project in a superb high class location? How much can rental for a 323sqft unit fetch?
U bot a unit there n duno whether to exercise anot?
Allthepies
16-01-11, 16:28
the ford @ holland, 484sqft, just TOP recentlly, rented @ $2800 per / mth.... u judge loft @ holland can rent how much....
devilplate
16-01-11, 16:36
the ford @ holland, 484sqft, just TOP recentlly, rented @ $2800 per / mth.... u judge loft @ holland can rent how much....
Only 200-300 buck more den D8 mm.... Lol....
Haha I dun understand the point of "It is also close to renowned schools like Henry Park Primary School, Nanyang Primary School, and Hwa Chong Institution."
Such small MMs can house little kids meh?
Haha I dun understand the point of "It is also close to renowned schools like Henry Park Primary School, Nanyang Primary School, and Hwa Chong Institution."
Such small MMs can house little kids meh?
Heard of "address rental"?
Wild Falcon
16-01-11, 18:32
No lah. Desperate parents may buy a unit there to rent out and at the same time register the place as home address when apply for P1.
Haha I dun understand the point of "It is also close to renowned schools like Henry Park Primary School, Nanyang Primary School, and Hwa Chong Institution."
Such small MMs can house little kids meh?
Yes but isnt it kinda illegal if using it for registration and not physically staying there? I do not see such place deem fit even for a small family
bargain hunter
16-01-11, 21:42
i think its impossible. 2 adults + a primary 1 kid stay in 323 sq ft studio?
anyway, its only within 2km of both henry park and nanyang, not 1km. given the hotness of balloting, chances are low anyway.
Yes but isnt it kinda illegal if using it for registration and not physically staying there? I do not see such place deem fit even for a small family
Loft@Holland sold out in 1 day ! Good stuff, ppl still snatch up.
bargain hunter
17-01-11, 15:46
"Looking ahead, he (Liew Mun Leong) said the measures will separate serious developers from speculators: 'These types of measures will differentiate the real estate developers who helped with Singapore's urbanisation from the speculators, who build shoebox apartments.'"
Capitaland really dun give oxley face.
devilplate
17-01-11, 16:08
"Looking ahead, he (Liew Mun Leong) said the measures will separate serious developers from speculators: 'These types of measures will differentiate the real estate developers who helped with Singapore's urbanisation from the speculators, who build shoebox apartments.'"
Capitaland really dun give oxley face.
haha...or rather sour grapes?
must position a bit mah, they're launching more d'leedon, urban suites and the nassim. all upmarket projects.
"As long the cat catches the rat, it is clever cat"
Just dun ends up a hungry cat or dead one...
Some fat cats prefer to catch cultured rats...
Different cat, different strokes :p
devilplate
17-01-11, 22:05
must position a bit mah, they're launching more d'leedon, urban suites and the nassim. all upmarket projects.
wonder wats the psf for urban suites....shd be 3kpsf b4 measures....now possibly 2.5kpsf? hehe
devilplate
17-01-11, 22:20
wonder wats the psf for urban suites....shd be 3kpsf b4 measures....now possibly 2.5kpsf? hehe
shd be urban resort.:ashamed1:
Previously it was going for about 2700+psf right?
bargain hunter
17-01-11, 22:40
all big big units type leh.
Previously it was going for about 2700+psf right?
devilplate
17-01-11, 22:50
all big big units type leh.
bro, u noe hows sales at vermont on cairnhill? surprised to see 527sqft...2bedder ard 900sqft....hehe MMs
all big big units type leh.
that's why he's trying to differentiate themselves from MM players ma, to justify to the prospective buyers, they're not just buying a house that's like a hole in the wall, but an iconic home that one can be proud off... i think i sound almost like those developer. ha. :cheers1:
bargain hunter
17-01-11, 23:50
not been tracking recently but they only sold 5 more in dec leh.
ok lah. smaller than usual but not exactly MM. maybe its the one lor...beg by giving 5% more discount? hehehe
bro, u noe hows sales at vermont on cairnhill? surprised to see 527sqft...2bedder ard 900sqft....hehe MMs
bargain hunter
17-01-11, 23:51
actually i always thot it'd be ideal to have something in between. but that is too idealistic. developers are so extreme, either big until cannot afford or small until MM. sigh. :mad:
that's why he's trying to differentiate themselves from MM players ma, to justify to the prospective buyers, they're not just buying a house that's like a hole in the wall, but an iconic home that one can be proud off... i think i sound almost like those developer. ha. :cheers1:
devilplate
17-01-11, 23:55
actually i always thot it'd be ideal to have something in between. but that is too idealistic. developers are so extreme, either big until cannot afford or small until MM. sigh. :mad:
hmm...mabe i shd visit vermont...2kpsf for 2bedder sounds fair....about 10% discount...hehe...
bargain hunter
18-01-11, 00:00
so far lowest psf for 2 bedder is 2300+? maybe try ur luck? hee
hmm...mabe i shd visit vermont...2kpsf for 2bedder sounds fair....about 10% discount...hehe...
http://www.straitstimes.com/Money/Story/STIStory_624014.html
Jan 14, 2011
Boutique project sold out in 2 hours
A BOUTIQUE development in Holland Road has sold out within two hours of a private preview.
Loft@Holland, a project by small-format homes specialist Oxley Holdings, saw all 41 apartment units taken up yesterday.
As there were more buyers than homes on offer, balloting was conducted for all but two units.
On average, there were about three buyers for each unit.
Prices ranged from $1,630 per square foot (psf) to $2,166 psf.
The buyers were mainly Singaporeans, Oxley said in a press release.
Said its executive chairman and chief executive Ching Chiat Kwong: 'The market's overwhelming response to our latest projects is extremely encouraging. We see this as an affirmation of Oxley's unique selling proposition.'
Located at 151 Holland Road, the five-storey development comprises 37 one-bedroom units, ranging from 323 sq ft to 484 sq ft.
There are also four two-bedroom penthouses with private jacuzzis, ranging from 980 sq ft to 1,141 sq ft.
Communal facilities include a basement carpark, a swimming pool and a gymnasium.
Loft@Holland's successful sale underscored the developer's belief in strong demand from buyers for small-format apartments.
Mr Ching had said earlier he was confident that these units, popularly known as shoebox apartments, would be well received as quantum prices will be affordable.
The group has launched five other projects so far: Suites@Katong, Parc Somme, Loft@Rangoon, Viva Vista and RV Point.
Shoebox flats tend to have low overall values - often under $1 million - but high prices on a psf basis.
Sales of these flats - they are under 500 sq ft - have been steadily increasing since they hit the market in 2006.
According to figures from property consultancy CB Richard Ellis, a total of 1,436 caveats were lodged for new shoebox units by mid-December last year, compared with 725 in 2009 and only 274 in 2008.
Regulators
20-01-11, 18:56
Oxley projects selling very well but their stocks not moving, anybody knows why? I heard oxley paying good dividend on their penny stock as well.
Oxley projects selling very well but their stocks not moving, anybody knows why? I heard oxley paying good dividend on their penny stock as well.
never drop very happy liao
Regulators
20-01-11, 21:09
It dropped from 40c to 37.5c and has been hovering below despite announcement of their project sellouts
never drop very happy liao
Market beta has an override capability.
bargain hunter
21-01-11, 00:19
you need to take a detailed look at the prospectus to try to value the stock.
firstly, they promised to pay 50% of profits in 2011, 30% in 2012 and 20% from 2013 to 2015. problem is, earnings are low in 2011 and increases as the projects get sold and completed. thus, the dividend, which is already hard to estimate, may not be too exciting.
secondly, this oxley holdings is a new entity which Ching, Low and Tee decided to pool their resources to develop only in 2009. Before Loft @ Holland & Vibes @ Kovan, the only projects are Parc Somme, Suites @ Katong, Loft @ Rangoon,Viva Vista and RV Point. ie loft @ nathan and other previously oxley branded projects are Mr. Ching's joint ventures with other pple and has nothing to do with the listed oxley holdings.
thirdly, it is very hard to try to value the landbank. Out of the 9 residential plots which they have, they have just launched 2. the other 7 remains unknown. we can assume full sell out and at record psf but even this is built into the price of the stock at least partially already. at 0.375, the market value of oxley is already 558m. the entry price of the 3 fellas i mentioned above through their pooling of resources is 0.70 CENTS ie, not even 7c, its 0.70 CENTS. they have become multimillionaires overnight so to say. new shareholders got IPO at 38c.
sorry for talking so much about stocks. :ashamed1: this is not a stock forum. hee. just providing some info for Regulators, hope he finds it helpful.
Oxley projects selling very well but their stocks not moving, anybody knows why? I heard oxley paying good dividend on their penny stock as well.
Regulators
21-01-11, 00:36
Thanks for the insight. So in other words, you feel that oxley stocks are not their current fair value? I read that they would be disbursing 50% of profits to shareholders as dividends, which is very attractive it seems. Do you see much upside in this counter based on their performance for vibes and loft @ holland?
you need to take a detailed look at the prospectus to try to value the stock.
firstly, they promised to pay 50% of profits in 2011, 30% in 2012 and 20% from 2013 to 2015. problem is, earnings are low in 2011 and increases as the projects get sold and completed. thus, the dividend, which is already hard to estimate, may not be too exciting.
secondly, this oxley holdings is a new entity which Ching, Low and Tee decided to pool their resources to develop only in 2009. Before Loft @ Holland & Vibes @ Kovan, the only projects are Parc Somme, Suites @ Katong, Loft @ Rangoon,Viva Vista and RV Point. ie loft @ nathan and other previously oxley branded projects are Mr. Ching's joint ventures with other pple and has nothing to do with the listed oxley holdings.
thirdly, it is very hard to try to value the landbank. Out of the 9 residential plots which they have, they have just launched 2. the other 7 remains unknown. we can assume full sell out and at record psf but even this is built into the price of the stock at least partially already. at 0.375, the market value of oxley is already 558m. the entry price of the 3 fellas i mentioned above through their pooling of resources is 0.70 CENTS ie, not even 7c, its 0.70 CENTS. they have become multimillionaires overnight so to say. new shareholders got IPO at 38c.
sorry for talking so much about stocks. :ashamed1: this is not a stock forum. hee. just providing some info for Regulators, hope he finds it helpful.
bargain hunter
21-01-11, 01:04
as i was saying, 50% (of low profits) only in first year may not be a lot of dividends. and as they recognise more profits in next few years (as the projects inch closer to completion), they pay less dividends. :doh:
i find that it is a high risk high return stock as a lot of things are not predictable and gotta be assumed. but i guess the basics is "buy only if you think their next 7 MM projects will sell like hot cakes at record psf despite the cooling measures."
Thanks for the insight. So in other words, you feel that oxley stocks are not their current fair value? I read that they would be disbursing 50% of profits to shareholders as dividends, which is very attractive it seems. Do you see much upside in this counter based on their performance for vibes and loft @ holland?
devilplate
21-01-11, 08:45
there was a news article recently saying tat those stocks tat makes good gains din hf much buy calls....
bargain hunter
21-01-11, 09:56
coz all the analysts know already ownself buy, then cite conflict of interest then dun cover the stock? hahahahahhaha
there was a news article recently saying tat those stocks tat makes good gains din hf much buy calls....
devilplate
21-01-11, 17:20
you need to take a detailed look at the prospectus to try to value the stock.
firstly, they promised to pay 50% of profits in 2011, 30% in 2012 and 20% from 2013 to 2015. problem is, earnings are low in 2011 and increases as the projects get sold and completed. thus, the dividend, which is already hard to estimate, may not be too exciting.
secondly, this oxley holdings is a new entity which Ching, Low and Tee decided to pool their resources to develop only in 2009. Before Loft @ Holland & Vibes @ Kovan, the only projects are Parc Somme, Suites @ Katong, Loft @ Rangoon,Viva Vista and RV Point. ie loft @ nathan and other previously oxley branded projects are Mr. Ching's joint ventures with other pple and has nothing to do with the listed oxley holdings.
thirdly, it is very hard to try to value the landbank. Out of the 9 residential plots which they have, they have just launched 2. the other 7 remains unknown. we can assume full sell out and at record psf but even this is built into the price of the stock at least partially already. at 0.375, the market value of oxley is already 558m. the entry price of the 3 fellas i mentioned above through their pooling of resources is 0.70 CENTS ie, not even 7c, its 0.70 CENTS. they have become multimillionaires overnight so to say. new shareholders got IPO at 38c.
sorry for talking so much about stocks. :ashamed1: this is not a stock forum. hee. just providing some info for Regulators, hope he finds it helpful.
bro, u r influential man....
oxley dropped 8% today!
HUAT HUAT HUAT!!!!:cheers1:
Regulators
21-01-11, 22:08
many counters also dropped lah...sti dropped as well
bro, u r influential man....
oxley dropped 8% today!
HUAT HUAT HUAT!!!!:cheers1:
bargain hunter
21-01-11, 22:54
oops. sorry oxley, not intentional hahaha. i wasn't even watching, din realise it was hit. hey, can't be so many pple read this loft @ holland thread rite? anyway, the test for it will be the loft @ stevens launch on 26th jan, next wed. if they start to sell slower and slower, then........
anyway, i stick to my view: whoever want to play around with this counter should stop before end april, when the moratorium ends. just my own personal opinion, but i feel the temptation for the overnight millionaires will be too great and they will take some profits since their cost is 0.007 vs the current 0.345 share price. :D
bro, u r influential man....
oxley dropped 8% today!
HUAT HUAT HUAT!!!!:cheers1:
Regulators
22-01-11, 00:12
Oxley Holdings Ltd – a company visit reveals huge hidden potential….if they execute their plans well…….BUY/Accumulate at IPO price for
Thursday, 6 January, 2011 9:55 AM
Posted by Kevin Scully
30-40% upside on its existing asset base.
I met the management of Oxley Holdings Ltd earlier this week. The company launched its IPO in October 2010 at S$0.38 and raised gross proceeds of about S$85.1mn. The shares retraced since IPO to a low of S$0.31 and have been recovering over the last few days to S$0.37 yesterday – still below the IPO price. Looks like other investors are looking at the stock too. There are hardly any substantive financials to look at but the potential is still there and we must rely on execution of their plans.
I was skeptical about the potential before my visit because it was in the property sector in Singapore which had been under performing because of Government property curbs. There was also hardly any up to date financial information in the Prospectus and even the Q1-2011 results till September 30, 2010 with net profit of S$1.83mn and shareholders funds S$9.4mn did not seem to justify its huge market capitalization of S$539mn. The only piece of information in the prospectus which could support such a number was the capital value of its 15 property sites of S$443mn. The IPO proceeds would also have increased its shareholders funds to just over S$100mn as the Q1-2011 was before its IPO.
The Surprises
My first impressions of the management were positive. They were enthusiastic and seemed to have identified a niche for themselves in a sector dominated by many established players.
Background/business strategy
The company is a pure developer of residential, industrial and office property in Singapore, ie everything is for sale with little or nothing kept as investment properties including office and industrial. Shortly after securing landsite, these would be launched and sold – creating a healthy future income stream and reducing the risk of its current high gearing level.
What can we expect ?!
We should see some of the benefits from this strategy in the second half of 2011. In the prospectus the company had already announced the launch and sale of 5 projects – Parc Somme, Suites@Katong, Loft@Rangoon, RV Point and Viva Vista. Everything is sold except for 2 shop units and RV Port – totaling 285 homes and 131 shops with revenue of about S$250mn and profit of about S$120mn…..but this will be recognized on progressive completion over the next two years.
The company intends to launch another 5 projects in calendar Q1-2011 – 4 residential sites in Stevens Road, Kovan Road, Devonshire and Holland Road and their big industrial site in Ubi. Details of the sites can be found in the prospectus.
Ubi is important as it could potential generate revenue of more than $500mn from its 1 million square feet of sellable space.
138 Robinson Road - a hidden gem
The hidden gem seems to be an option that the Company exercised on 7 October 2010 (page 87 of the prospectus) for 138 Robinson Road. I walked down to see the site (see photos below). Its next to Chow House which is being redeveloped into a residential block. Oxley plans to redevelop the site once it gains vacant possession into small office and some retail with an estimated sellable area of more than 200,000 sq feet.
The estimated selling price is still not know but recent transactions of the Suites at Robinson of retail at S$5000 psf and residential at S$2800 psf will provide some guide as to the indicative pricing. The site is classified as office so there is hardly any DC payable which would suggest that their land cost and breakeven would be low relative to the selling prices above.
The Best Case Scenario
If they can sell the proposed Q1-2011 launches well and if the numbers for 138 Robinson Road are along the lines of the transactions above, Oxley could surprisingly generate a profit stream of $700-900mn over the next four to five years which would boost its forward RNAV to S$800-900mn. This is forward as the company only recognizes profit on progressive completion.
So in the best case scenario of where the Q1-2011 launches proceed as planned and they announce the launch of 138 Robinson Road – we are looking at a future RNAV of S$900mn or about S$0.62 per share (a 67% premium to the current share price). To be conservative, we have discounted this future income to the present day using a discount rate of 8% to give a present value RNAV of S$0.51 (upside of about 38%).
The company has also committed to pay 50% of earnings in 2011 as a dividend followed by 30% for 2012 earnings and 20% for 2013 earnings. Assuming net profit of about S$50-60mn for the FYE June 30, 2011, investors would be looking at a running yield of about 5%
What could go wrong ?
The key to the S$0.51 target is the launch of UBI and 138 Robinson Road, these are likely to be the price catalyst for the shares to rerate. Their successful launch at current prices would unlock the value. However, weak demand would be a dent and I would need to rework the numbers. So I will be watching its Q2-2011 results and the launch results for confirmation that the earnings and sales momentum is on track.
Possible overhang from Pre-Ipo investors ?
There are 126.5mn shares at S$0.21 which were issued to nine individuals and entities comprising 8.5% of the enlarged capital. These shares could dampen the share price should these investors decide to sell their shares once their moratorium ends (six months after IPO).
When asked about the potential overhang, the management indicated that these were friends and business associates who were therefore likely to be medium to long term investors. While I am happy to know this, investors should be aware that there is no assurance of what these investors will do when the moratorium ends.
However, if the fundamentals pan out, any weakness from the ending of the moratorium will provide a buying opportunity.
High gross gearing ?
Investors should be aware that Oxley’s debt levels will be high as it tries to build up its shareholders funds – in the initial years gearing of 300-400%. This is similar to SC Global’s gearing level according to Bloomberg. But the gearing and debt risk is mitigated by their business strategy of selling the land they acquire quickly after acquisition. So while the gross gearing remains high…..this will naturally decline as the progressive income is recognized.
This will become a serious risk if their launches are not well taken up and must be monitored closely.
Overall view
I think the shares are overlooked and offer great hidden potential and upside of 30-40% from the S$0.37 level based on its current landbank and my expectation of reasonable launches and selling prices. The prospectus and the Q1-2011 results do not give investors a good nor clear picture of the company. Hopefully the Q2-2011 and the full year 2011 financial statements will be more reflective of the underlying assets and their potential.
The key is execution and if the company’s launches are well received and it delivers net profits in the June 2011 period of S$50-60mn, it is likely to attract more investor interest.
Given the above, I think accumulation and buying of the shares at the IPO prices offers a good entry level with 30-40% upside in the medium term. Investors can also expect a reasonable dividend yield at least over the next three financial years of about 5% and with further upside should they continue to acquire niche land sites with good yields.
bargain hunter
30-01-11, 12:15
Q2 net profit attributable to shareholders = 458k. H1 total 1603k. there are now 1489000k shares. Earnings per share is 0.11 CENTS. even if H2 profits jump, paying out 50% of those profits as dividends is not going to give u a decent yield at the current share price of 34.5 CENTS for sure. Net Asset Value is a mere 8.04 CENTS. they will seriously need to continue to be able to sell their MM at obscene net profit margins to justify their 34.5 CENTS share price.
as i was saying, 50% (of low profits) only in first year may not be a lot of dividends. and as they recognise more profits in next few years (as the projects inch closer to completion), they pay less dividends. :doh:
i find that it is a high risk high return stock as a lot of things are not predictable and gotta be assumed. but i guess the basics is "buy only if you think their next 7 MM projects will sell like hot cakes at record psf despite the cooling measures."
Regulators
30-01-11, 12:54
What do you think the dividend payout will be like?
Q2 net profit attributable to shareholders = 458k. H1 total 1603k. there are now 1489000k shares. Earnings per share is 0.11 CENTS. even if H2 profits jump, paying out 50% of those profits as dividends is not going to give u a decent yield at the current share price of 34.5 CENTS for sure. Net Asset Value is a mere 8.04 CENTS. they will seriously need to continue to be able to sell their MM at obscene net profit margins to justify their 34.5 CENTS share price.
bargain hunter
30-01-11, 13:46
put it this way, to pay out 1c (2.9% at current price), they need to earn 2c = 29.78 million. they earned 1.6m in H1. I seriously don't expect them to make a net profit of 28m in H2.
What do you think the dividend payout will be like?
Regulators
30-01-11, 19:32
What do you expect the fair value of the share to be? So it seems you do not think oxley can keep the same pace for their other future launches
put it this way, to pay out 1c (2.9% at current price), they need to earn 2c = 29.78 million. they earned 1.6m in H1. I seriously don't expect them to make a net profit of 28m in H2.
bargain hunter
30-01-11, 20:13
i find it very hard to estimate the fair value precisely because of the uncertainty of the unsold landbank. if the 7 landbanks and the industrial plot + robinson acquisition goes perfect, then maybe its worth more than 40c to maybe even up to that kevin scully's 0.51 target. but if any of the combination cocks up, then the fair value is likely to be below 30c. so pretty high risk vs not so exciting returns.
What do you expect the fair value of the share to be? So it seems you do not think oxley can keep the same pace for their other future launches
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