SPH REIT (SK6U)

I've been away so long due to the Hong Kong protests which is affecting the Hong Kong and China stocks that are in air-con city ice-cream boy's ("ACCICB") portfolio. I just spent the last few days reading the prospectus of Jimmy Choo's IPO so I'm super looking forward to its debut on LSE. Fingers crossed on getting some allocation! I've also been spending time on my hobbies which are artistically/creatively inclined which I've many and surprisingly also contributes to investment ideas. I think its how my brain works... enjoying my hobbies but at the same time thinking of how this can make me $$$. More on that in one of the later posts.


Source:  SPH REIT website

SPH REIT is one of those low key REITS that is flying under the radar since the volume traded and price movements is rather non-existent as compared to the other REITS. It either stays at it's price for a couple of days or moves up or down by 0.01 to 0.02. This REIT was brought to my attention by ACCICB and boy am I glad he told me about it. Of course, he bought it at a low of 0.990 and it's currently trading at 1.060. Sadly, I bought it at 1.07 but my forecast is that it can rise to 1.200 in the mid term and that could trigger me to sell away my holdings.

SPH REIT currently has two properties which are Paragon and The Clementi Mall. Opening in mid November 2014 would be The Seletar Mall which is located at Seng Kang near to Fernvale LRT station. It is already more than 90% leased out and it has tenants such as Shaw Theatres, Fairprice Finest, Uniqlo, BHG, NTUC Foodfare, Amore Fitness, Mothercare, Popular Bookstore etc. This property is expected to be added to the portfolio of SPH REIT!

I think that these 3 properties would be a good mix as Paragon is one of the places to go in Orchard Road for luxury goods. It is also very popular given the medical tower and to be honest I go to Paragon almost every week as Fitness First is there and the general shopping vibe is good. The parking is terrible as always on weekends and on weekdays it gets bad in the late mornings. Carpark space does tell you about the general shopper footfall in Singapore.

Clementi Mall is excellent as well and is linked to the bus interchange and MRT station. Having stayed in Dover for a good part of my childhood means that the nearest bustling areas to visit on weekends are Clementi and Holland Village. Clementi has loads of people living in this neighbourhood and this mall serves its purpose of catering to the needs of people who live nearby as well as the NUS students who take the bus to their campus. I think Clementi Mall has faced increasing competition from the many malls that have popped up in Jurong in the past few years but I have faith and am looking forward to price appreciation of SPH REIT!

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