Sunday, November 10, 2013

GBH - Freehold land in Jalan Segambut

It is ripe for GBH, which is 74.35% controlled by Tan Sri Robert Tan to develop its landbank in Jalan Segambut, following in the footsteps of its sister company FCW Holdings Bhd.

GHB owns about 12.92 acres of freehold land in Jalan Segambut, which is currently (Nov 2013) occupied by its bathroom ware manufacturing operation. The land and the factory buildings are carried at a net book value of rm114.44 million or about rm203 psf, based on the last valuation done in 2009.

The land, whose value could have gone up since then, is adjacent to the 15.41 acre parcel being jointly developed by FCW (which is also controlled by Tan) and IJM Land Bhd. The FCW tract, which was acquired from GBH in 2007, was valued at rm188 million or rm280 psf in the recent deal with IJM Land.

While FCW and IJM Land have yet to disclose the planned gross development value of their joint project, it has a GDV of rm1.2 billion that could serve as a yardstick.

A development of that size would have a significant impact on GBH if it chose to develop its Segambut land.

Tan’s plan is for FCW-IJM Land to take the lead in the area development, and perhaps learn from the project. GBH may develop its land slightly later as it still needs to carry on with the bathroom ware business at this juncture.

GBH is debt free and cash rich with a bank balance of rm42 million as at June 30 2013. By most measures, the company would seem an undeveloped gem, given the value of its land and cash holdings.

However, there is not much trading activity in GBH shares perhaps because Tan holds almost three quarters of the company.

Apart from GBH, several other companies linked to Tan, such as FCW and MAICA, have seen renewed interest following property related deals.

Tan owns a 25.00% stake in FCW. In MAICA, he owns 17.37% while daughter Tan Ching Ching has another 7.86%.

United Bintang, is which Tan is not listed as a shareholder of director of the company apart from an affiliation with its directors and shareholders.

UBB’s independent director Ong is a long time directors in Tan controlled Jasa Kita while another independent director, Lee Wu Jin is also a director in FCW and MAICA.

UBB is deal in used and reconditioned heavy machinery and equipment. However it plans to diversify into property development by re developing and refurbishing.

Lankaran Asia emerged as a substantial shareholder of UBB on Sept 2013. Datuk Ooi Kee Liang – the controlling shareholder of PN17 outfit Ideal Sun City Holdings Bhd – also acquired a 31.48% stake in UBB in Oct 2013.

Robert Tan and one of UBB shareholder Ong Huey Peng is a substantial shareholder in Marco Holdings Bhd.

Nevertheless GBH remains Robert Tan’s core holdings.

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Please note that all data given are merely blogger's opinion. It is strongly recommended that you do your own analysis and research before investing.