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SG and HK markets are definitely not overpriced.
So was PREH. But also many other property owners and developers.
The difference between PREH and the rest is that PREH has decided to monetise their assets during this period. Perhaps to recycle into other developments or perhaps to cover some of their other liabilities, but it doesn't matter.
PREH could well have been like Bonvest, HGC, and the many other similarly undervalued property developer/owner, where shareholders have no idea of when value will be unlocked, and the shares continue to trade at a large discount to RNAV.
I suspect Breadtalk's privatisation may also be partly motivated by advanced knowledge that their substantial investments in some of PPREH's developments are in the process of being monetised. I always wondered how BT can afford to privatise -- or why they would even want to do so -- just as their core businesses were sustaining significant damage from the pandemic.
So was PREH. But also many other property owners and developers.
The difference between PREH and the rest is that PREH has decided to monetise their assets during this period. Perhaps to recycle into other developments or perhaps to cover some of their other liabilities, but it doesn't matter.
PREH could well have been like Bonvest, HGC, and the many other similarly undervalued property developer/owner, where shareholders have no idea of when value will be unlocked, and the shares continue to trade at a large discount to RNAV.
I suspect Breadtalk's privatisation may also be partly motivated by advanced knowledge that their substantial investments in some of PPREH's developments are in the process of being monetised. I always wondered how BT can afford to privatise -- or why they would even want to do so -- just as their core businesses were sustaining significant damage from the pandemic.