SGX Stocks and Warrants

Author: kimeng   |   Latest post: Wed, 22 May 2019, 9:02 AM


Singapore Press Holdings: 3 More UK Assets

Author:   |    Publish date:

SPH announced yesterday evening that it has acquired a portfolio of three purpose-built student accommodation (PBSA) assets in the UK for a cash consideration of ~GBP 133.7m. The portfolio will have a total capacity of 1,243 beds across Southampton, Sheffield and Leeds, with occupancy rates in excess of 90%.

We note that the portfolio comes with a rental guarantee that covers the 2018/2019 and 2019/2020 academic years. We believe that this asset should come at a ~6% NPI yield, and could be funded with a LTV ratio of ~55-65% at a low 2% cost of debt handle. This acquisition is not surprising, given that management has signaled its intention to bulk up its presence in the UK PBSA scene for a while now.

All considered, SPH’s PBSA portfolio will now have a total capacity of over 5,000 beds across 220 assets in 10 cities. We maintain our HOLD rating and FV estimate of S$2.55 for now.

Source: OCBC Research - 17 Apr 2019

Share this
Labels: SPH

Related Stocks

Chart Stock Name Last Change Volume 
SPH 2.39 +0.07 (3.02%) 4,757 

  Be the first to like this.


171  86  151  693 

Top 10 Active Counters
 HSI26000MBePW.. 0.091-0.009 
 ISR Capital^ 0.003+0.001 
 YZJ Shipbldg SGD 1.380.00 
 AA 0.01-0.003 
 Golden Agri-Res 0.265-0.01 
 Asian Pay Tv Tr 0.177+0.004 
 Genting Sing 0.87-0.005 
 CapitaCom Trust 1.93+0.01 
 Rex Intl 0.063+0.001 
 Spackman 0.0180.00 
Partners & Brokers