GL Limited (formerly: Guoco Leisure)

[greengiraffe]

Corporate governance can be expected to be tip-top when we are dealing with seasoned banker and developer owned companies.

G Leisure remains a deeply valued stock and shareholders should make full use of the AGM to politely ask pointed questions - ie how does management intend to unlock value embedded within the company (not withstanding the tough operating environment that is facing any companies globally):

i) a confirmation of what mgt think the value of the hotels are - Stocker did mention that Quek himself confirmed that hotels were worth at least S$2bn during 2011 AGM;

ii) redevelopment potential of any hotels into residential or offices as we know that UK residential mkt is red hot with the ongoing QEs from US and within Euroland;

iii) realistically the value of the ranch in Hawaii, US. The value of the property remains stable but substantial even though operations are currently mothballed. There is mentioned that green initiatives are in the process of being implemented with government subsidies - so will the initiatives be lucrative to provide G Leisure with a new source of recurrent income and justify the stability in valuations (not merely a ascribe value simply because there is no liquidity on the island for real estate transactions or there is a blanket ruling to facilitate free market transactions of land.

There is no question that G Leisure is a efficiently run hospitality operations. Just that there is a need to tap into the Man's thoughts to see how he looked at the values within the hospitality arm of his listed investment holding group.

Coy said they are not aware of anything.