Parc Botnnia Condominum Investment Highlights

Huge discount (38%-56%) to publication value ($0.65) and also RNAV ($0.91). We approximate SHL RNAV at roughly $363mn or $0.91 each share lifted by revaluation for its advancement home (Parc Botannia) as well as finished homes (Biztech). A deep dive evaluation reveals that Parc Botannia could deliver web earnings of $158mn over 2018-2021 and elevate SHL's RNAV by $0.22/ sh. Please see the following section for an in-depth evaluation. The Biztech industrial residential property is noted to market at $950 psf based upon the current transactions and also asking costs for systems in the exact same building. For its Robin House job, SHL has sold all the units in March 2017 for $72mn and also anticipates to tape a loss of $4mn from the sale in 3Q17. We anticipate the firm to completely accumulate the sales proceed in 2H17 and apply the sales figures as the RNAV price quote.

Positive near term stimulant from the launch of brand-new advancement condo job in Fernvale Road, Parc Botannia, in November would raise RNAV by about $0.22 or 34%. We approximate that Parc Botannia would accomplish an ordinary asking price (ASP) of $1150 psf for the task. The nearby condo tasks, such as High Park Residence, have asking rates above $1200 psf. Inning accordance with web sites marketing Parc Botannia, the main rate is likely to be set at over $1,100 psf. The show flats are open for sneak preview in Oct 2017 as well as the sneak peek launch or sales balloting would certainly remain in Nov. Residential or commercial property representatives are now marketing Parc Bontannia to collect rate of interest. Therefore, the stimulant shows up and also financiers could attend the sale events to assess the popularity of Parc Botannia. Finally, the TOP for the condo is 4Q2020.