# BEC - Becton Property Group



## imajica (23 October 2007)

I can't believe there isn't a thread for this one!

seems to be quietly heading North - flying under the radar


its a property stock, a property fund manager and in the retirement village business

assets under management have grown significantly each year and are projected to continue expanding.

If anyone has fully scrutinised this one, please post your thoughts!!!

thanks in advance


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## imajica (23 October 2007)

sorry forgot to post a chart, seems rather bullish to me

any technical analysis would be great - thanks in advance


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## michael_selway (23 October 2007)

imajica said:


> sorry forgot to post a chart, seems rather bullish to me
> 
> any technical analysis would be great - thanks in advance




Hi big drop in EPS from 2007 to 2008 for soem reason but then a steady increase. But is there any risk with this company?

*Earnings and Dividends Forecast (cents per share) 
2007 2008 2009 2010 
EPS 65.6 33.1 35.5 37.8 
DPS 15.5 27.3 29.3 32.0 *

thx

MS


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## imajica (23 October 2007)

nice solid increase in the dividends though!

the group has $1.6 billion in funds under management - after the acquisition of Estate Property Group funds under managment will clear $2 billion

The company's project development pipeline has recently swelled to $2.8 billion

The increase in Becton's retirement portfolio will occur in 2008/2009 when it plans to develop 150 retirement dwellings a year


a solid business model implemented by switched on management


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## ricm (23 October 2007)

Not too sure, 
Been holding for awhile, and seems to keep pushing onwards both in acquisitions and sp. maybe the buying up may have effected the eps?


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## imajica (29 October 2007)

Highlights from the AGM  - notes released this morning


Strategy: Profit and value are maximised when our businesses work together
Becton is a fully integrated property group focussed on:
• integration of our capabilities
• capturing all profits
• creating recurring earnings through management fees
• de-risking our earnings
• return on equity through co-investment
• total security holder return


Development & Construction
• Pipeline larger and more diverse with strong focus on retirement and commercial
• $2.9 billion pipeline diverse by geography, sector and timing of delivery
Updates:
• Fincorp and Estate portfolio – Becton in control of all projects and transition smooth
• Bonnyrigg – Works on site are programmed to commence in early 2009


Development Fund No. 1 – launched and equity-raising open
Becton’s flagship development fund – first in a planned series and its highlights include:

• Becton’s best projects form Becton Development Fund No.1
• Alignment of interests due to co-investment by Becton
• Target internal rate of return of 15% p.a. (post fees pre tax)
• Becton has more than 30 years experience as a developer
• Diversified by project, timing, geography and sector
Retirement
Development pipeline underpins growth
• Strong EBIT growth with predictable future earnings
• Development pipeline > 1,000 dwellings
• Focus on greenfield development, in particular, in premium suburbs
Funds management
Profits doubled each year for past three years demonstrating scalability of business
• EBIT of $17.4 million was 181% higher than prior period and 45% higher than prospectus
• Total returns to fund investors averaging > 20% in FY07
• YTD October FY08 equity inflows 51% higher than prior period – track record and platform penetration
a key driver of the growth
• YTD October FY08 acquisitions (settled and contracted) at $234 million


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## imajica (29 October 2007)

strong support for BEC this morning - share price currently at $4.90 

technically it looks as if this one could push through $5 in the near future


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## imajica (31 October 2007)

My prediction indeed proved to be correct!

smashed through the $5 barrier - currently at $5.03

a good summary of their projects is outlined  in the broadcast of the AGM speeches at boardroom radio

http://www.brr.com.au/BEC/becton-property-group


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## imajica (1 November 2007)

Becton share price looking strong once again. Hitting fresh all time highs this morning of $5.10  

here is another rather bullish chart


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## imajica (7 November 2007)

Media release – 5 November 2007

Becton’s office fund increases diversification with new
Brisbane asset


Becton Property Group (“Becton”) announced today that its Becton Office Fund (or “Fund”)
has exchanged contracts to purchase a commercial property at 369 Ann Street, Brisbane,
for $48.43 million. The 6,687m ² property will settle on 30 April 2008.
The Ann Street property, purchased from Orchard Funds Management, will produce a
market yield of 7.3%. The majority of the building is currently leased to consultants Sinclair
Knight Merz (SKM).
The Fund owns 16 properties in eight Australian States and Territories and New Zealand,
with a total asset value of $464 million and a weighted average lease expiry (WALE) of
approximately three years. The acquisitions will bring Becton’s funds under management to
$1.45 billion.Becton’s Head of Funds Management, Matthew Chun said, “This is the first asset the Fund
has purchased in the Brisbane CBD, increasing the Fund’s diversification, providing it with
assets in every major Capital city and creating a presence in a rapidly growing market in a
State with a booming economy.
“Ann St fits our strategy of purchasing properties where we can apply our active asset
management, demonstrated by the significant value-add opportunity provided by the lease
expiry timing which is perfectly timed to achieve the strong rents while the market remains
buoyant. We are pleased that our investors now have an exposure to the strongly
performing Brisbane CBD.
“Brisbane is experiencing its lowest vacancy rate on record – added to the fact the
building’s lease expiry is occurring at the right time in the market, we should experience
extremely high demand for the property and secure the highest possible rents and a strong
result due to demand and absorption forecasts,” said Mr Chun.
The property has a large ratio of carparks which is highly valued in the inner-city office
market, flexible floorplates for tenants and short-term rental reversion. The deal was
brokered by Colin Peet of Savills in Brisbane.
Becton Investment Management manages 14 investment vehicles including an office,
industrial, retail and development fund, a diversified fund, 9 single property trusts and an
income fund. Its portfolio currently manages 75 properties across office, retail, industrial,
hotel and healthcare sectors on behalf of more than 6,000 investors. Funds currently open
for investment include the Becton Office Fund, Becton Industrial Fund and Becton
Diversified Property Fund.


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## imajica (12 November 2007)

ASX and media release – 9 November 2007

Becton Diversified Property Fund receives four stars
from S&P

The Becton Diversified Property Fund has been awarded a four-star rating from
Standard and Poor’s Fund Services (“S&P”) – reflecting S&P’s overall belief that
risk-adjusted returns will consistently exceed relevant investment objectives and
returns of peer funds. S&P’s rating follows a recent Upper Recommended rating by
researcher, Lonsec.
S&P stated that Becton’s funds management business has in place a ‘large and
high-calibre executive team, with a depth of relevant property experience, ably
supported by the resources of the wider Becton Property Group’.
Head of funds management, Matthew Chun said, “We are very pleased with the four-star fund
rating given to us by Standard & Poor’s – particularly with their commentary relating to our
active management approach; that our investment strategy is well-considered, based upon a
rigorous analysis of risk yet balanced with a forward-thinking assessment of market conditions.“
“S&P have reinforced the advantage the Fund has in being part of a diversified property
company – in that it provides a sustainable competitive advantage for the Fund in its strategy of
securing, improving and repositioning assets – which is something we recognise as a key
advantage. This rating complements the ‘Upper Recommended’ rating Lonsec awarded the
Fund in September, and the ‘Recommended’ rating received from Aegis in November” said Mr
Chun.
Becton believes the research outcomes will enhance support for the Fund. Advisers can access
the Becton Diversified Property Fund through BT, Macquarie, ASGARD, Navigator, Oasis and
Netwealth for both superannuation and non-superannuation investments.


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## imajica (3 December 2007)

Becton surpasses $2 billion in funds under management with the acquisition of Lachlan
Property Group


Becton Property Group (“Becton” or “the Group”) (ASX: BEC) is pleased to announce that it has
acquired Lachlan Property Group (“Lachlan”).
Becton Executive Director and Head of Funds Management, Matthew Chun, said the acquisition of the
Sydney-based property funds management group which has approximately $450 million of funds under
management (FUM) represents an excellent bolt on acquisition to Becton’s existing funds management
business.
“The Lachlan team has established an excellent business with a track record of increasing profits and
delivering strong returns to fund investors. We have spent considerable time researching unlisted
property fund managers in Australia and Lachlan is a stand out business and manager. The Lachlan
directors and employees share the philosophy of “active asset management” that Becton employs
across its funds management business. There is also a strong cultural and strategic fit between
Lachlan and Becton in terms of structure, assets, investors and co-investment strategy all of which will
ensure investors in these unlisted funds have a strong alignment with Becton,” said Mr Chun.
Becton’s acquisition of Lachlan is comprised of two parts; $42.4 million for the funds management
business and $21 million for units in Lachlan managed funds. Like Becton, Lachlan has a strategy of
co-investing in the funds that it manages. The units will be acquired by Becton’s managed unlisted
funds. The remaining portion of the acquisition price will be debt funded and is payable in two
instalments, approximately 15% at signing and the remainder on 31 January 2008.
The acquisition of the business (excluding the $21 million of units) represents a price of approximately
11 times earnings before interest and tax (EBIT).
Becton CEO, Hamish Macdonald said, “The acquisition addresses numerous strategic objectives and
provides several key benefits to Becton.”
“The acquisition fits well with Becton’s strategy of increasing our recurring earnings. It also provides
significant synergies through the removal of duplicate functions (such as investor relations, marketing
and finance) and increases our growing presence in Sydney, following the acquisition of the Estate
Property Group, through the addition ofsome talented employees.”


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## austek (7 December 2007)

Bought some Wednesday for a very good reason.
It's my Daughters name.

My favourite indicators moving up, but price still meandering sideways


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## austek (11 December 2007)

The more I study the chart on BEC the more negative aspects I see.

EW suggests to me it could dip as low as $4.50 area, the linear regression channel puts the dip as low as $4.65

Would need to break up to $4.85/$4.90 to negate this downswing

Any chartists care to provide an alternative analysis for BEC


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## austek (11 December 2007)

Prayers answered, broke out of triangle late today on increased volume.
Good probability of a move up the chain from here


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## Big_Daz (25 May 2008)

Given the recent struggles in the property sector....has anyone been keeping their eye on this stock?

Is property still off the rador of everyones portfolios?


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## psychic (22 October 2008)

Latest update: BEC current share price 15.5 cents and a massive fall of late.  Who is game to catch a falling knife?


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## Mr Capital (22 October 2008)

I looked at Becton some time ago @ around the 1.30 mark, then @ .30c
Kept my money, but i'll bet on it falling further.


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## psychic (23 October 2008)

BEC broke news lows this morning of 12 cents.  But support is now starting to build at these levels.  Hoping to see some upward direction soon.  This downward run has to end somewhere


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## Bushman (23 October 2008)

psychic said:


> BEC broke news lows this morning of 12 cents.  But support is now starting to build at these levels.  Hoping to see some upward direction soon.  This downward run has to end somewhere




Agree. I think Max Beck will remerge and take it private if it falls too much lower. 

Becton have some of the best aged care facility assets in Melbourne, their heartland. 

Silly season is upon the smaller A-REITs again - see BEC, CMW, ABP etc


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## psychic (24 October 2008)

*BEC - Becton ponders privatisation*


October 24, 2008 12:00am

TROUBLED listed property group Becton is considering its future, with privatisation or a sale on the cards.

"We need to reassess whether being listed is the right structure for our company," Becton chief executive Matthew Chun told Business Daily. 

"There's a wide range of options which we can't go into but we will inform the market in due course." 

Mr Chun also revealed Becton had received offers for parts or the whole of the company. 

"We've had inquiries," he said. "In this market we consider all approaches, to keep our options open." 

Becton's share price has plummeted by more than 50 per cent over the past week and closed yesterday down 9.7 per cent at 14. 

Over the past year the share price dived more than 90 per cent as investors fled the troubled listed property sector. 

Mr Chun said there were "a number of factors" behind the company's beating on the bourse, including sector giant GPT's announcement yesterday it was trying to raise at least $1.6 billion in new capital. 

"The GPT announcement upset the whole market," he said. 

"They're expecting us to come out and raise capital at half our share price, which is what GPT has done." 

He said Becton stock had been sold down by investors who held shares in both companies and wanted to participate in GPT's raising. 

"We're very much out of favour with the share market." 

He said the company was concentrating on reducing debt. 

Since the start of the year, the company has paid off $281 million in debt and Mr Chun said the company was complying with all covenants over the remaining $556 million. 

"Our current focus is to sell our inventory to free up our balance sheet. 

"The underlying operations of the business continue to meet their operational targets. 

"That is the key to reducing our debt and producing cash flows." 

But he conceded the company had been hurt by the below-par performance of a portfolio it last year plucked from the carcass of collapsed developer Estate Property Group. 

Becton paid $534 million for the apartment blocks and development sites, which were initially funded by EPG's sister mortgage fund Australian Capital Reserve. 

"The apartments have gone more or less to plan," Mr Chun said. 

"The development sites have been more difficult than we anticipated -- but no one expected the credit crisis. 

"At this stage we don't expect to see the profit we expected." 

Becton stock climbed as high as $2.02 in mid-May.

source:

http://www.news.com.au/heraldsun/story/0,21985,24542895-664,00.html


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## bloomy88 (29 October 2008)

Personally i wouldnt touch Becton with a 10 foot pole, look at it's massive fall from over $5.
It is a complete gamble so you may aswell take your cash and put it on red at the casino.
Either that you could buy some of the relatively cheap blue - chip shares.

I would like to hear peoples thoughts though on what will happen to Bectons price in the future....

Cheers


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## cbacamden (19 November 2008)

I find this one very interesting, and I hold this stock and will probably purchase more over the next few days.

What I am hoping for is a takeover although im a little worried that the finance problems may stop any deal from going through smoothly.

As far as I can tell they are doing ok except for the refinance issue.

Its a gamble - but at 8 cents - for me worth the risk

Do your own research


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## nomore4s (15 April 2009)

Unfortunately I've been caught with the false breakout of the 20c range on this one. I had a fair bit of slippage on entry as well just to make matters worse, my fault as I should of set the max buy price lower.

I have left my stop at 14.5c but I should have exited on open today after yesterdays upthrust on huge volume - a sure sell sign

I don't like my chances of support at 15c holding tomorrow especially if there is any weakness in US tonight. I haven't made many trading mistakes lately but it looks like this one will cost me the full 2% risk, just to bring me back to earth.


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## MACCA350 (3 July 2009)

BEC was put in a trading halt at their request pending an announcement on Wednsday 1/7
Today they were suspended from official quotation at their request pending an announcement.

The only other time I've had one of my stocks suspended was BNB which went down the tube and I lost $16k. I've previously sold out enough to return my capital investment in BEC, so my remaining stock in BEC is purely profits. 

Anyone have any insight into what is happening with BEC and whether they will follow BNB's fate?

cheers


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## Flip (3 July 2009)

Reinstatement to Official Quotation 


"DEBT REFINANCING 

The Group continues to negotiate with our corporate bankers on key facilities as outlined in 
our ASX release dated 30 April 2009. Importantly, BOSI has agreed to waive all financial 
covenant testing on our working capital facility for a 3 month period ending 29thSeptember 2009 with a view to re-negotiating covenants post audited full-year financial results being 
available. 

The Group is also pleased to advise that in principle agreement has been reached with the 
liquidator of Australian Capital Reserve ("ACR") for the majority of amounts outstanding in 
respect of the Estate Property Group transaction being $36.3m (plus interest at 8% per 
annum accruing from 1stDecember 2008) to be paid in the period July 2011 to July 2013. The agreement is subject to final documentation which is expected to be completed in the 
next 7 days. "


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## AmansBestFriend (1 December 2016)

Sorry to drag this back up but it seems Simonds Homes is following a similar trajectory and guess what the same CEO Matthew Chun is at the helm. from $1.78 down to close at 33 cents today. At least he is consistent will be 2 from 2 going under at this rate.......


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