Tuan Sing shares soars to 5-year high of $0.455 per share

After Fragrance CEO increased his shareholdings.

Real estate developer Tuan Sing was probably rejoicing yesterday with a closing price that represented a still-significant 30.1% discount at Tuan Sing’s book value of $0.651 per share.

According to a report by OCBC, Mr Koh Wee Meng, Chairman and CEO of the Fragrance Group, brought his shareholdings (including direct and deemed interest) of Tuan Sing Holdings Limited from 4.46% to 5.02% via share purchases in the open market, making him a substantial shareholder. Mr Koh had purchased, from the open market on 25 Sep 2014, 6.5m shares at an average price of S$0.432 per share.

After this news, Tuan Sing shares soared to a 5-year high yesterday, closing at S$0.455 per share with 26m shares traded (~5.5% of float).

Here’s more from OCBC:

Tuan Sing’s residential developments in Singapore include projects such as Sennett Residences (91% sold as at end 2Q14), Cluny Park Residences (33% sold) and Seletar Park Residence (95% sold). Commercial projects include Robinson Tower (currently under redevelopment), Robinson Point and also Century Warehouse. In Sep 2014, Tuan Sing also recently acquired the remaining 50% interests, that it did not already own, in two five-star hotels in Australia, namely Grand Hyatt Melbourne and Hyatt Regency Perth, for A$126m.

Tuan Sing is currently controlled by the Liem family, who owns at least 53.5% collectively, and we highlight that it remains speculative as to what Mr Koh’s intentions are. That said, we note that Mr Koh, a seasoned real estate developer, has publicly indicated his plans for expansion in Australia following the slowdown in the Singapore residential market, and his company Fragrance Group has also recently proposed plans to spin-off its property business in Australia on the Catalist board. As such, Tuan Sing’s two prime hotels in Melbourne and Perth could be of special interest to Mr Koh. We currently have do not have a rating on Tuan Sing.