Singapore Press Holdings (SPH) - OCBC Investment 2019-04-17: 3 More UK Assets

SINGAPORE PRESS HLDGS LTD (SGX:T39) | SGinvestors.io SINGAPORE PRESS HLDGS LTD (SGX:T39)

Singapore Press Holdings (SPH) - 3 More UK Assets

  • Singapore Press Holdings (SPH, SGX:T39) announced yesterday evening that it has acquired a portfolio of three purpose-built student accommodation (PBSA) assets in the UK for a cash consideration of ~GBP 133.7m. (see SPH's announcements)
  • The portfolio will have a total capacity of 1,243 beds across Southampton, Sheffield and Leeds, with occupancy rates in excess of 90%. We note that the portfolio comes with a rental guarantee that covers the 2018/2019 and 2019/2020 academic years.
  • We believe that this asset should come at a ~6% NPI yield, and could be funded with a LTV ratio of ~55-65% at a low 2% cost of debt handle.
  • This acquisition is not surprising, given that management has signaled its intention to bulk up its presence in the UK PBSA scene for a while now.
  • All considered, SPH’s PBSA portfolio will now have a total capacity of over 5,000 beds across 220 assets in 10 cities.

  • We maintain our HOLD rating and Fair Value estimate of S$2.55 for now.


SPH’s PBSA portfolio


Cities No. of assets No. of beds
Birmingham 1 175
Bristol 2 231
Glasgow 2 264
Huddersfield 3 1,005
Leeds 1 320
Lincoln 1 116
London 2 147
Plymouth 5 1,111
Sheffield 2 1,164
Southampton 1 526
Total 20 5,059








Joseph Ng OCBC Investment Research | https://www.iocbc.com/ 2019-04-17
SGX Stock Analyst Report HOLD MAINTAIN HOLD 2.550 SAME 2.550



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