Tuan Sing

Tuan Sing: Group entered into an agreement to acquire Robinson Point for $349m from a spv. The 21-storey freehold commercial building at 39 Robinson Rd has a gfa of 169k sf and net lettable area of 135.3k sf which translates to $2,580 psf. As at 26 Jun 2013, valuers reported a valuation of $350m for Robinson Point. The purchase will be mainly funded by bank loan, increasing the group's net borrowings to $696m and net gearing to 0.97x (from 0.48x). The acquisition is in line with the company's strategy of expanding its core property business and securing recurring income business. At the last closing price of $0.34, Tuan Sing trades at a 3.7x historical P/E