SPH's Paragon revalued at $1.82b - Jun 29, 2007 (BT)
The Straits Times / The Business Times News On SPH
SPH's Paragon revalued at $1.82bWhile Paragon was once identified as a non-core asset, SPH has said in recent times that it is committed to holding on to the property for the foreseeable future.
Jun 29, 2007
The Business Times
SINGAPORE Press Holdings' main property asset, Paragon, has been revalued at $1.82 billion. This is higher than the valuation of $1.52 billion the media group disclosed in July last year when it announced its results for the third quarter of FY2006.
The latest valuation of the retail and office complex at prime Orchard Road was carried out by Knight Frank. The valuation of Paragon, done on an annual basis, is required under the terms of the bank loan for the property.
While Paragon was once identified as a non-core asset, SPH has said in recent times that it is committed to holding on to the property for the foreseeable future. The complex enjoys full occupancy, and yielded about 9 per cent return on equity, according to SPH's latest annual report. The group has made efforts to enhance rental yields from the complex.
Separately, SPH said it will absorb the Goods and Services Tax (GST) hike of 2 per cent for its suite of newspapers and magazines. Cover prices of its publications will remain unchanged from July 1, 2007. SPH has a stable of 14 newspapers in four languages and over 90 magazine titles in Singapore and the region. The additional cost to SPH of absorbing the 2 per cent GST hike is estimated to be about $4 million a year.
SPH shares rose six cents to $4.64 yesterday. The group will release its financial results for the third quarter ended May 2007 on July 11.