Lian Beng / KSH / Tee Int’l

Lian Beng / KSH / Tee Int’l: The three developers have teamed up in a proposed JV for the redevelopment of No. 160 Changi (formerly AIA Changi Building), with Lian Beng taking a 40% stake, and KSH and Tee each owning 30%. The plot, purchased for $68m, is an existing 4-storey building with 2 basements (inclusive of 23 carpark lots) on a site area of ~18k sf. The freehold land is zoned for commercial use, with a plot ratio of 3x. The JV intends to redevelop the property into mixed office and retail use. The smaller property players continue to cooperate on projects to diversify site-specific risks; their smaller size makes them nimble in adjusting the strategy toward commercial properties, after the recent cooling measures in the residential and industrial segments. Lian Beng trades at 5.7x P/E, 1.0x P/B. KSH trades at 5.8x P/E, 1.2x P/B. Tee trades at 9.5x P/E, 2.1x P/B.