Oh no, I am not such a big risk taker. You can never tell what could happend to the stock markets.

My holding is only 45 lots.

Keppel Land: Buy (Kim Eng, 19 Nov)
We gathered from property agents that the VVIP preview for Marina Bay Suites is underway, with the indicative pricing expected to be between $2,000-2,500 psf. There are no shoebox units in this 221-unit development – the smallest 3-bedder with an area of 1,572 sq ft is likely to cost almost $4m. We are keeping our average selling price (ASP) assumption of $2,200 psf for now, and we believe that the pricing is achievable. Phase 1 of the Marina Bay Financial Centre (MBFC) appears on schedule to be completed by 2010. The latest pre-commitment level is 67% (total NLA is 1.6m sq ft), and we expect leasing activities to quicken a couple of months before completion. We think such a prime Grade A development will naturally attract quality tenants. K-REIT's rights-issue to raise $620m just concluded, leaving it with a very low gearing of 9.1%. We postulate that K-REIT may acquire KepLand's one-third stake in MBFC Ph1, which we value at $918m (assuming a capital value of $1700 psf). Assuming it is fully debt-funded, such an acquisition will bring K-REIT's leverage to 37% – still a comfortable level. KepLand could then reinvest most of the proceeds in new residential developments. KepLand's share price has outperformed in the past month and we think it is the start of a re-rating. Its overseas sales are progressing well, its local projects look set to benefit from the IRs and the MBFC is set to be the "location of choice" for tenants. Maintain our BUY recommendation with a new target price of $3.70, pegged at par to FY10 RNAV, as we raise the valuation of its fund management business to 12x.