Chip Eng Seng

Chip Eng Seng: receives Australian govt approval for it’s a$170m residential devt located in Melbourne’s CBD. The 71-storey building is named Tower Melbourne, and will have 581 residential units, comprising a mix of 1 to 3 bedroom apts, town homes and penthouses. The project is expected to be complete in 2016. Mgt notes many overseas and local buyers have already expressed strong interest in the project. Tower Melbourne is Chip Eng Seng’s second residential devt in Melbourne. It first, the 388 unit 33M, located on Mackenzie Street, was completed in Oct ’12. Separately, Chip Eng Seng also announced that it has previewed its 66 unit freehold B1 industrial property, 100 Pasir Panjang to selected buyers. The property has a land area of 54.2k sf with a plot ratio of 2.5. The land was acquired in Sep ’10 for $62.8m. The project is expected to be completed in 2014. The stock has been steadily climbing to new multi year highs, likely supported by on going share buybacks. The stock trades at 5.5x P/E, 0.9x P/B.