One-off gain: Lian Beng to dispose of Midlink Plaza for $270m

Other purchases in the bag.

Lian Beng, through Millenium Land and Billion Land, is planning to dispose of 122 Middle Investment - the vehicle that holds Midlink Plaza on 122 Middle Road - for SGD270m.

A report by OSK-DMG reveals that Lian Beng will reap a FY15F post-tax gain of SGD8.45m from this sale.

The proposed disposal for SGD270m, with carrying cost and construction cost of SGD146.4m and SGD70m, will yield a post-tax gain of SGD44.5m on the entire property. Lian Beng's effective stake of 19% in the property would translate into an SGD8.5m gain for FY15. Raising FY15F earnings from SGD60.5m to SGD69.0m. With this oneoff gain in the bag, we raise our FY15F earnings by c. SGD8.5m, equivalent to a 14% increase.

Here’s more from OSK-DMG:

Along the same vein, Lian Beng – through its 32%-owned associated company Epic Land Pte Ltd, is purchasing 92.8% of the aggregate strata area in Prudential Tower from Keppel REIT for SGD512m. Assuming an ASP of SGD2,600psf on units with strata titles, we expect Lian Beng to see a c.SGD23.3m profit boost after tax. As the company is currently in the process of obtaining approval for the deal, we have yet to factor in any earnings from it.