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Chong.Ser.Jing's avatar

Hi Idea Hive, thanks for sharing your research on SUTL. We looked at SUTL Enterprise in July 2023 and decided to pass primarily because we worked out that SUTL Enterprise only had 14 years (back then) left for its lease of One Marina 15. The company paid S$32 million in 2006 for the land lease, and it would be profitable to renew at the same rate it got the land for back in 2006. But Singapore has seen some serious inflation in land prices, so by the time the lease-renewal comes up for One Marina 15, it's likely going to be *much higher* than S$32 million. So, we think most of the cash that SUTL Enterprise has on the balance sheet is probably locked up for a long time in anticipation of the lease renewal and has very little chance of being returned to shareholders.

Another more minor worry we picked up was that SUTL Enterprise is only a small part of the the Tay family's overall business empire which is the SUTL Group. We thought it was possible that SUTL Enterprise may not receive full management-attention.

Just our 2 cents - happy to hear your thoughts!

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Kerl Brun's avatar

Just checked on Bloomberg and the ticker I'm seeing for SUTL Enterprise Ltd is SUTL (in Singapore) and SUTLF (on US exchanges). I'm not seeing it listed under BHU or BHU-SI on any exchange. Am I missing something?

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