GOB just released report to Bursa Malaysia for the proposed sale of USJ Shopping mall for RM488 millions to Pavilion. This sale if approved will definitely makes GOB cash rich and dividend payment will be forthcoming too.
Total bank loan at 30/6/2015 stands at 270 millions but cash proceeds from sales of USJ mall is RM488 millions. This would mean surplus of 218 millions after settling all bank loans. Paid up capital of GOB amounts to 227.3 millions of 50 sen each. Hopefully, more investors would be interested to buy tomorrow upon hearing the news
hahah, of course need to pay transaction cost lar, intraday contra buy and sell together cost just about RM3/share, therefore, as long as your gross profit is 0.5sen, is more than enough to cover your cost and still can profiting RM 2/share, of course the more the better
I think if GOB sold Da/men for RM 488m and realize net gain RM 228 or net cash 49/share, it may later decide to declare special dividend to reward shareholder :D)
In current property glut, I like GOB for its timely good move to monetize its land, property investment fast, realize net gain and transform these property stock into NET CASH position, special dividend is highly expected
Huat ar! Pavilion Real Estate Investment Trust (REIT) has proposed to acquire da:mén USJ shopping mall for RM488 million. Will GOB report > RM200 mil PBT for FY ending 31/3/16 ????
Sell on news la...where got 200m...zzz..have to use it to pay debt and loan, and have to makan makan ler...stupid mgmt, why sell their most valuable asset, why didnt make it as recurring rental income? sold liao is bad to small investor, as we wouldnt enjoy the cash, the cash profit will slowly being makan by big investor, long term qr result will be bad.. =.=
what is the point of having recurring income if you have alot of baggage (loan) in your balance sheet? it will take longer to use the recurring income to pay off the liability principal + interest. For me, management has done the right thing - clean up the balance sheet via unlocking the value of the mall via disposal and then roll the money to develop Batu Kawan , Penang. That is the next frontier and will serve as a catalyst to re-rate this stock.
Furthermore, the price for the mall disposal is not bad - at RM488M.
For the Jalan Ampang land JV with Lembaga Getah - they have roped in a partner to provide the necessary funding to build the Jalan Ampang project as evidenced by the issuance of preference shares as shown in their balance sheet. Hence, they don't need to dump much money there. Indeed, with the disposal of this Da'Mein, they may not even need this partner after all.
After the disposal of the mall, this company will be a net cash company...this is more important to me.
You should take a look for more appropriate case....Tropicana mall, sold at RM 560m, but management said that Tropicana although loss the recurring income RM 22m pa, but the proceed from disposal can be use to pay the borrowing, and save interest expense RM 24m pa...therefore, the save in interest cost is more than offset the recurring income from the mall
(Remark: the occupancy rate, rental rate must also take into account )
hahaha, L&G although is cash rich, but have little landbank. Therefore L&G need the cash to buy more land in order replenish for more property development. In contrast, GOB have a lot of landbank, and have opt to monetize some of the land to realize cash and if take into account latest Da'Men mall disposal, GOB will be in NET CASH position and can proceed to further extract value from its exiting landbank by develop more property and realize even more value from the land. Of course, we can expect management to reward shareholder with part of the cash proceed from disposal
In short: 1. GOB = big landbank + NET CASH position 2. Tropicana = Huge land-bank, but still have high gearing (>0.5x) despite continue disposal of its assets 3. L&G = small landbank + Net cash position
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Posted by hng33 > 2015-09-17 14:31 | Report Abuse
Bought GOB at 49-50sen