Real estate 101

Business model The main variations in the business model of a real estate company is typically that of: Acquiring to sell (i.e. developer): A typical example would be property developers bidding for land and selling a finished product (e.g.: residential units) to end consumer. Acquiring to rent (i.e. landlord): In the context of Singapore, property

Dissecting BreadTalk’s property and F&B business

Following my earlier post on BreadTalk, it is evident that the BreadTalk’s investments in various property interests has begun to bear fruit. In this blog post, I aim to find out what is the intrinsic value of BreadTalk’s property interest and thereafter evaluate the valuation of the BreadTalk F&B business. The main reason why the

What real estate players are saying at 31 December 2017

The results seasons has come to a close for 31 December 2017. In this blog post, I have extracted the relevant information from the announcement of the real estate players, with focus on residential development and office sector. I will share interesting titbits that I discover as well which hopefully will give investors of shares

BreadTalk: The enhancement of real estate through good brands

“What is the business of McDonalds? Selling hamburgers and french fries? Actually, McDonalds is earning substantially from the real estate through owning the real estate which it operates from.” I am not sure how many of you have heard the above quote. We have in our midst a local F&B company, BreadTalk who was able

Lessons from the Pearl Bank en-bloc

In the recent week before Chinese New Year, there is a return of the en-bloc deals being finalised after a brief hiatus whereby 4 deals were concluded in quick succession: Development District PSF PPR Deal Size (S$m’) Buyer Pearl Bank Apartment 3 1,515 929 Capitaland Cairnhill Mansions 9 2,311 362 Low Keng Huat Riviera Point 9 1,461  

The Four Elements of Real Estate Investing

I picked up a classic book on real estate library over the past week and would like to share the four critical elements on real estate investing. Although this book focus on real estate investing, I personally find that this can be a good guide even for REIT investors who would better understand the business

Book Review: Preparing for a Property Upturn by Ku Swee Yong

I have personally found the articles by the author insightful and straight to the point. The decision to pick up this book as a holiday read did not disappoint me and I would like to share some key messages in the book. 1. Ageing Population and the Housing Market The book started off analysing the

Taking stock on developer stocks rally

Taking stock on developer stocks rally I have mentioned in my previous post on my position in developer stocks to ride the rising land price cycle. The focus for me was on companies that got their land bid in 2016 when land price was still relatively depressed and the en bloc party was but a

Insights on UOL Third Quarter Financial Results

Insights on UOL Third Quarter Financial Results One of the most significant item that is presented in UOL’s Third Quarter Results is the other gain recognised of about $527 million resulting from negative goodwill on acquisition of a subsidiary and loss on derecognition of associated and joint venture companies. The gain arises from a share

En bloc party

Take stock on the en-bloc party You know it is not business as usual when you see news on successful en-bloc every other week. Digging into Singapore real estate archives, such active en-bloc “party” was not seen since the 2006 – 2007. The by-product of the last boom are developments like d’Leedon (former Farrer Court) and Interlace (Gillman Heights). Transaction