ROXY-PACIFIC HOLDINGS LIMITED
SGX: E8Z
Roxy-Pacific Holdings - Hip Hip Hooray!
- Roxy-Pacific enters into a non-binding Heads of Agreement to divest its 50%-owned commercial building on Clarence St, Sydney for A$153m (28% premium to latest valuation).
- Estimated exit yield to be below current yield of c.4%.
- Harbourview is more than 90% sold while The Navian is more than 70% sold.
- A small- to mid-cap gem among the property developers. Maintain BUY, Target Price S$0.63.
What’s New
- Roxy Pacific has entered into a non-binding Heads of Agreement to divest its 50%-owned commercial building on Clarence St, Sydney for A$153m (~S$153m), at a 28% premium to its latest valuation as at February 2018 to an Australian-domiciled institutional investor. The divestment is subject to a due diligence exercise and obtaining the necessary board approvals. No estimated completion timeline was given.
- The building was acquired only a little more than two years ago for A$81m. We estimate the exit yield to be below the current yield of approximately 4%.
- We believe this is positive for Roxy Pacific as a testament to its successful investment and asset recycling strategy while it continues to record strong sales from its Singapore residential projects. Roxy has sold more than 90% of its latest launched project in April 2018, Harbourview Gardens at an average of S$1,760psf. The Navian has sold more than 70% to date. The next expected launch is the development on Grange Road.
- We remain positive on Roxy as a small- to mid-cap gem among the property developers, a niche proxy to the Singapore property market.
- Maintain BUY rating, Target Price of S$0.63.
Rachel TAN
DBS Vickers
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Derek TAN
DBS Vickers
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https://www.dbsvickers.com/
2018-05-08
SGX Stock
Analyst Report
0.63
Down
0.690
