Chip Eng Seng

Chip Eng Seng: to purchase a devt site at 170 Victoria Street, Melbourne, for A$32m. The site is situated in a high profile CBD fringe location on the corner of Victoria Street and Bouverie Street, and has a 2 storey heritage building shell which will form part of any future devt. The 2,927 sm area will be re-developed into a staged, multi-storey mixed use high rise devt of residential accommodation of approx 1000 apts, street level retail space and a no. of podium levels of secure parking in addition to 2 levels of basement car park. The project will be financed by internal sources and bank borrowings. Chip Eng Seng has been diversifying its projects, likely mitigating the policy risks associated with cooling measures in the Singapore residential segment. Last wk, the developer acquired San Centre at Changi to be redeveloped for mixed commercial use. Chip Eng Seng’s share have gained strength following positive news flow that retail space at its Alexander Central building fetched prices north of $5,000 psf, vs its land cost of just $789 psf. The stock trades at 6.6x P/E, 1.1x P/B.