GLP

GLP: Has completed the refinancing of JPY47b (US$612m) of debt approx 19.4% of GLP’s overall debt in Japan. The new interest cost of 1.42% (with interest rate swap) is lower than the previous interest cost of 1.94%. In addition, the maturity of the debt has been extended to March 2016 from September 2012. Co has current leverage of 22% (net debt to total assets). GLP now has a P/B of 0.88x
9:05:07 AM: Low Xu Yang:
#Lian Beng & Centurion: To launch the sale of a 141-unit freehold ramp-up industrial building at its Mandai plot in 4Q2011.

Located at Mandai Estate about 18.7k sqm (200k sf), the land parcel was acquired by the JV, Lian Beng-Centurion (Mandai) in Jan this yr (Lian Beng 55%, Centurion 45% ownership). Co has divided this land into three plots for different developments. The first two plots will be used for the development of the ramp-up industrial building and a workers’ dormitory of 4700 beds. Development of the third plot is not yet finalized.

The dev will be for companies engaged in heavy, clean and light industries with ASP expected to range between S$650-700 per sf. Construction is expected to commence in the 4Q2011 and last for 15 to 18 mths for the building and 12 to 15 mths for the dorm.

DMG has Buy call with TP$0.71 and our in-house reinitiated a Buy with TP$0.62 on Lian Beng last wk on potential spin-off. Lian Beng has a fwd P/E of 3.75x with DMG highlighting sector avg at 7x