Chip Eng Seng

Chip Eng Seng: has proposed a collective purchase of all units of San Centre, an office building located at Chin Swee Road, with a land area of 2,668 sm and a gfa of 12,253 sm, at purchase price of $113m. This translates to a price tag of $857 psf ppr. Subject to approval by relevant authorities, the site with 55 yrs lease remaining, may be redeveloped into a 20 storey commercial or mixed commercial and hotel devt. The stock may be in focus, as market watchers extrapolate Chip Eng Seng’s recent success with its recent redevelopment of Alexandra Central. Recall, the developer paid ~$789 psf ppr ratio for the Alexandra site, vs reported selling prices of approx $5,000 for strata shop units, which could result in an estimated surplus amounting to ~$0.33 per Chip Eng Seng share. Philip, which does not have a rating, ascribes a FY15e RNAV of $1.49 to the stock.