FIRST REIT

Sold off Sabana REIT and switched to a medical REIT 2 months ago. Sabana has become dearly enervated lately with management unable to find replacement major tenants immediately despite ample time before lease expiry. The management clearly lacks the will to execute strategic moves timely.

Guess it was probably time to tweak my portfolio to be more defensive hence the switch to First Reit. Also started to accumulate more of First Reit and average $1.193 overall. With the announcement of remarkable performance during the last quarter, its share price soar to break the $1.20 barrier.

Perennial China Retail Trust (PCRT) - Why prices remained low despite announcement of S$0.70 share offer?

Awesome! PCRT just announced St James will be offering a buy out of existing shareholders via issuance of shares issued by the new Retail Group with a diverse property portfolio. The Vendor will offer S$0.70 per share. This is a whopping 27% premium over the current market place of S$0.55 per share. Net assets per share is S$0.77 per share. I am currently holding on to 55 lots of PCRT (after selling off 20 lots) and have just received S$1200++ in terms of cash dividends. No prize for guessing PCRT as my star performer for 2014. 

Why then does the share price of PCRT still languish behind? Today, it touched S$0.60 briefly before dropping off and ended at S$0.55. Reason is simple: The market is pricing risk premiums extremely high and expecting a substantial discount from assets under construction as well the risk of not being able to secure quality tenants in view of overwhelming retail supply. There were even reports in mainland China of retail malls which offer free rental to their anchor tenants.

Anyway, chances are even if the new entity commenced trading, its share prices will eventually drop off to compensate for the market risk premiums. I would actually recommend current holders to sell off as soon as the new entity commenced trading. Just how much exactly? For those interested, jot down your request through your comments and I will oblige. 

Rivertrees Residences Review

Development Name: Rivertrees Residences
Developer: Frasers Centrepoint Homes, Fareast Orchard Ltd, Sekisui House Ltd
Address: Fernvale Close
District: 28 
Development Type: Residential
Tenure: 99 yrs
Site Area: 14,930.5 sqm / 160,712 sqft (approx.)
Gross Floor Area: 44,791.5 sqm / 482,136 sqft (approx.)
Plot Ratio (GPR): 3.0
Maximum Building Height: 80m AMSL (Above Mean Sea Level)
No. of Blocks / Storey: 5 Blocks, part 20-Storey/22-Storey high & 8 Landed Homes
No. of Units: 495 (Residential) including 8 Cove Homes & 1 Shop Space
Facilities:  Full Condo Facilities.
Expected T.O.P: 13 June 2018

Beautiful 155m reservoir facing frontage. The ground level for the condo units are actually on an elevated platform that is already 2 storey high. Like Qbay Residences at Tampines, the developer has also introduced a chalet that one can book for relatives or friends to stay overnight....known as the River Villa (see below pic at bottom). This project reminded me of Clearwater Bay in Hong Kong and Monte Carlo.



Suites selling like hotcakes





Main entrance from the new Fernvale side road

                                                  

Tennis court and another tower facing H20 Residences



Stack facing pool and former reserve site for "school"



Tower facing H2O Residences infinity pool and fitness clubhouse



The U shape design maximises pool view and reservoir view



The much coveted Cove House- HOT!



Reservoir facing tower with River Villa on the side



Impressive landscaping



This side will be facing River Bank

                                                 

River Villa- Some naughty kid destroyed the fence and throw it into the SPA

                                         

Pictures of Showflat for 2 Bedroom Deluxe Suites



Taken from Entrance-Dining and Living room sizes



Small kitchen but still functional



Kitchen seen from dining area



Common bedroom-decent size

Balcony just the right size for a small family

Good size of living room and dining area

Kids can roam freely in the spacious living room

I find the kitchen a bit small but overall, the layout for all units are very functional and space efficient. Prices from 950psf to 1150psf which is fairly reasonable for such a well designed project. Suites due to their smaller size quantum selling like hot cakes. The cheaper units are those facing away from the pool and reservoir view. I would recommend prospective buyers to spend a bit more to get the better facing units as these will be easier to rent out or resell in future.

 

Location wise, not sure why many short sighted people keep bashing Fernvale and said that this place is remote and do not have much amenities. Seletar Mall is due for completion. Also, the upcoming BTOs will have commercial shops built into the ground level for the benefits of all residents. Park connector will link this up to Seng Kang Riverside Park and Punggol Promenade. There will also be a viaduct built to connect to the TPE. Rivertrees Residences represent an unique investment into the upcoming new town which is closely integrated with nature.

The Tembusu Review- Gem of Wing Tai group

Lush landscaping and the allure of freehold in the heart of Kovan. Sky bridges linking all the blocks together. Wing Tai presents their exquisite concept of home which integrate modern sleek architecture with environmental sustainability: The Tembusu!

Prices start at 1500psf. A typical 3 bedder at 1,044sqft will cost around $1.58mil. Excellent finishing such as compressed marble, good quality timber flooring, sliding wardrobes, rain shower, mosaic tiles in bathroom and space saving built in kitchen cabinets that exploits wasted corner spaces being provided by Wing Tai. 

Facilities bring provided not just at ground floor but also on level 6 and 12. I particularly like the observatory deck on level 12. For units just below the single level penthouse, the private enclosed space is actually a built in garden. For those with the money to spare, do consider a purchase in one of these rare units that will make you the envy and talk among your relatives and friends. 

The Tembusu is truly an outstanding and remarkable iconic masterpiece by Wing Tai. This is not surprising given that this used to be Wing Tai's HQ when they just started their business. No efforts have been spared to make it the most prominent piece of architecture work standing out in the vicinity.

S-REITS Correction and Effect on rising interest rates

It is interesting to note that most experts believe that rising interest rates will hurt REITS. My views are totally different from the mainstream folks. The current interest rate hikes is attributable to better economic performance in particularly the US. Based on US history for REITS in such environment, REITS had delivered strong growth in terms of revenue. At a minimum, I would expect REITS Manager to be able to pass them on effectively to their core tenant. 

The current correction in price of S REITS present good opportunity for buy in.