Boustead Projects

Yes , getting projects is the challenging part . That is why ADIC is needed to help open doors ... Similar to how some of our political leaders have travelled overseas to chit chat with other governments . Partnerships would lower risk for BP as well

The value of properties reflected under investment properties was only ~$160mil as of March 2015.

However, in the prospectus (page 2), the total valuation (if you bother to tally up) = $407 mil. But we need to deduct out the portion not owned by BP (i.e. 50% equity in Boustead Centre).

After this has been done, we get $388mil. But let's not forget about the 15th and 16th projects recently brought into the portfolio. Assuming a conservative lease rate of $1.4 PSF and 12 years lease period, we obtain $13mil valuation for these 2 projects.

So, the total valuation for all 16 properties in the portfolio will be $401mil.
(The valuation was only done recently and could be very conservative, reflecting the current somber mood in the market...)

Compare this figure of $401mil with the value above $160mil (investment properties reflected on books)

There is a revaluation surplus gap of $241mil or 75 cents.

Current NAV = 79 cents.

(30-05-2015, 02:51 PM)Curiousparty Wrote: The value of properties reflected under investment properties was only ~$160mil as of March 2015.

However, in the prospectus (page 2), the total valuation (if you bother to tally up) = $407 mil. But we need to deduct out the portion not owned by BP (i.e. 50% equity in Boustead Centre).

After this has been done, we get $388mil. But let's not forget about the 15th and 16th projects recently brought into the portfolio. Assuming a conservative lease rate of $1.4 PSF and 12 years lease period, we obtain $13mil valuation for these 2 projects.

So, the total valuation for all 16 properties in the portfolio will be $401mil.
(The valuation was only done recently and could be very conservative, reflecting the current somber mood in the market...)

Compare this figure of $401mil with the value above $160mil (investment properties reflected on books)

A quick note that all this revaluation was done in 30 Sept 2014 in view of the demerger, hence it may not reflect the current mood in the market.

page 119 of prospectus already mentioned about the declining rental indices observed in 2014. How could the valuers not have taken this into account ???

(30-05-2015, 06:24 PM)r0n Wrote:

(30-05-2015, 02:51 PM)Curiousparty Wrote: The value of properties reflected under investment properties was only ~$160mil as of March 2015.

However, in the prospectus (page 2), the total valuation (if you bother to tally up) = $407 mil. But we need to deduct out the portion not owned by BP (i.e. 50% equity in Boustead Centre).

After this has been done, we get $388mil. But let's not forget about the 15th and 16th projects recently brought into the portfolio. Assuming a conservative lease rate of $1.4 PSF and 12 years lease period, we obtain $13mil valuation for these 2 projects.

So, the total valuation for all 16 properties in the portfolio will be $401mil.
(The valuation was only done recently and could be very conservative, reflecting the current somber mood in the market...)

Compare this figure of $401mil with the value above $160mil (investment properties reflected on books)

A quick note that all this revaluation was done in 30 Sept 2014 in view of the demerger, hence it may not reflect the current mood in the market.

[Edited by moderator]

where is your costs of properties - land + construction costs?

[Edited by moderator]

(30-05-2015, 02:51 PM)Curiousparty Wrote: The value of properties reflected under investment properties was only ~$160mil as of March 2015.

However, in the prospectus (page 2), the total valuation (if you bother to tally up) = $407 mil. But we need to deduct out the portion not owned by BP (i.e. 50% equity in Boustead Centre).

After this has been done, we get $388mil. But let's not forget about the 15th and 16th projects recently brought into the portfolio. Assuming a conservative lease rate of $1.4 PSF and 12 years lease period, we obtain $13mil valuation for these 2 projects.

So, the total valuation for all 16 properties in the portfolio will be $401mil.
(The valuation was only done recently and could be very conservative, reflecting the current somber mood in the market...)

Compare this figure of $401mil with the value above $160mil (investment properties reflected on books)

There is a revaluation surplus gap of $241mil or 75 cents.

Revaluation Gain = $401mil - $160mil = $241mil or 75 cents.
Current NAV = 79 cents only!!!

Is Boustead Project a steal?

Hopefully, the share price remains depressed .....Hopefully, it does not announce JV to form REITs too soon or else share price might explode up before meaningful accumulation can take place!

The properties are already held at "cost - depreciation" in the books.

Not sure what construction cost and land are being referred to ? Properties upon commissioning will be amortized accordingly.

Can accountants come and help to educate GG, the top fund manager in spore?

I m referring to your reval on new properties... you have not added value to the rnav of existing ones since its still around 387m

(30-05-2015, 10:54 PM)Curiousparty Wrote: The properties are already held at "cost - depreciation" in the books.

Not sure what construction cost ? Properties upon commissioning will be amortized accordingly.

Can accountants come and help to educate GG, the top fund manager in spore?

Let's remove $13mil if someone is so upset. As mentioned before, BP only builds when end users have been secured. No risk of unsold properties unlike normal developers like Hupsteel, CES, etc

The revaluation surplus for all the JVs had not been accounted for. Add another 10 cents if u want to include these as well.

All in all, easily more than 60 cents of surplus for completed properties. .

Now, we know why BP is going for REITs.

Cannot seem to find the words " RNAV = $1.26" at all in the prospectus.

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(30-05-2015, 11:13 PM)greengiraffe Wrote: There is no rocket science to figure out RNAV is $1.26 - its all in the introduction prospectus.

Till today, it is quite clear that you are druming up interests via and resorting to distorting facts and figures for an undeclared interests in a stock that you are vested.

No body will be upset should you uncover things and shared on the forum that we don't know.

Unfortunately, you also appear clueless over the interests BP has in each property and even the actual client anchoring each properties.

(30-05-2015, 11:00 PM)Curiousparty Wrote: Let's remove $13mil if someone is so upset. As mentioned before, BP only builds when end users have been secured. No risk of unsold properties unlike normal developers like Hupsteel, CES, etc

The revaluation surplus for all the JVs had not been accounted for. Add another 10 cents if u want to include these as well.

All in all, easily more than 60 cents of surplus for completed properties. .

Now, we know why BP is going for REITs.