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
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https://www.iocbc.com/
2019-04-17
SGX Stock
Analyst Report
2.550
SAME
2.550
