Wheelock Properties

[Scg8866t]

I did a 50% discount on its Non-current Asset figure. However, it should be around $2.0 instead (30% discount).

Anyway realize there is insider buying in Sep. Not sure if it is already posted.

May I know why you are giving a disc to their non current asset when most of the asset and investment properties they hold are understated?

@ TUBInvesting :
 
What is your basis in working out the “fair value” or “intrinsic value” of Wheelock Properties?
 
Why should it be SGD 2.0 (@30% discount) now as opposed to 50% discount as assumed by you not so long ago?
 
The difference between a 30% and a 50% discount is huge - your notion of “fair value” seems to change rather quickly……………………
 
@ Scg8866t :
 
Investment properties is measured at “fair value”, what makes you think they are “understated”?
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Book value of HPL is likely to be understated as its hotel properties are classified under PPE. From HpL annual report you can see that they value their freehold fourseasons hotel at ard 120mil only. My impression is their HPL investment should be worth more than its current book. Even if we were to ignore this problem and just value it as it is, i dont see any reason why anyone should give a 30-50% disc to wheelocks non current asset. None of their assets are spun off to become fully valued reits yet. Thats why im puzzled by TUB valuation.

Agreed – Investments in HPL are understated.
 
But investment Properties – Wheelock Place and Scotts Square Retail – measured at “fair value” are unlikely to be understated.
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Yes interest in associate is also under non current. There is zero reason to give a disc to non current asset. Thats why im asking the reason for the disc given by TUB. Doesnt make sense.