Wheelock's cash pile could top $1b by 1H17

It could gain $600m from two recent projects.

RHB is expecting Wheelock to have more cash pouring in over the next few quarters as the developer continues to collect progress billings for its substantially sold Panorama project and generate proceeds from new sales from its already completed Ardmore 3 project.

According to the research house, billings from these two projects could bring in an additional $600m cash by end 1H17 and raise the firm's net cash position to $1bn, putting it in a pristine position to seek out acquisitions or land-banking opportunities.

RHB notes that Wheelock Properties is one of the few developers in Singapore with a net cash position. Excluding its investment in Hotel Properties (HPL), the Group has net cash of $630m as at end-3Q16, comprising of cash and readily marketable securities.

"The capital expenditure requirements are minimal and the Group's sole project in China, in Fuyang city, has made good progress with phase 1 ready for handover in 4Q16. We believe proceeds generated from the current phase can be used to finance future phases of the project," it said.

The developer has two investment properties, Wheelock Place and Scotts Square retail, which generates a recurring rental income of ~$40m per annum.