Wednesday, 31 August 2011

PROPERTY / SC GLOBAL (Lim&Tan)

S$1.135-SCGD.SI

􀁺 A new record has been set for property prices in Singapore, with SC Global selling a 3003 sf unit at the Marq for $19 mln or $6400 psf.

􀁺 The previous record, also at the Marq was $5842 psf set in May this year.

􀁺 We believe the new record reflects the buyer’s choice for balcony instead of the 15m cantilevered swimming pool.

􀁺 We do not however expect the news to translate to share price gain for SC Global. Fact is the completed luxurious condo has yet to cross the 50% sold mark, having thus far sold 28 out of a total of 66 units.

􀁺 But, having fallen sharply from recent high of $1.51 on speculation of Simon Cheong privatizing his namesake company just because he paid $1.35-1.42 a share for almost 3 mln shares in June), the stock is worth accumulating, especially as it approaches the $1 level.

􀁺 At $1.135, price to book NAV of $1.54 is 0.74x.

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