Boustead Projects

[r0n]

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.