2nd Liner Prop Stocks

Hi Yeh,
Here's my take on Zhongshan Park's value:
 
Days Hotel: 405 rooms X $500k per key (3.5 star hotel) = $202.5m
Ramada Hotel: 384 X $600k per key (4 star hotel) = $230.4m
 
Retail space: 55,000 sq ft X $5,000 psf (see assumptions below) = $275m
Office space: 65,000 sq ft X $1,600 psf (see assumptions below) = $104m
 
Total valuation = $811.9m
Cost of land = $73.3m
Construction and other costs = $200m
Total cost = $273.4m
 
Valuation surplus (over total cost) = $811.9m - $273.4m = $538.6m
Superbowl's share (50%) = $269.3m
No of shares = 326.192m
Valuation surplus of ZP per Superbowl share = 82.6 cents (Hiap Hoe's share: 57.2cts because of its larger market cap)
I indicated a range of 60-80ct as my estimate for Superbowl's share of ZP valuation surplus to suit diff estimates one would like to have depending on how aggressive or prudent one is. In fact, my 82.6ct above is already quite prudent, as I have not taken into account the cafes/restaurant space that's inside and outside (facing the park) the 2 hotels. I believe this space is not in the 55,000 retail space that I indicated above. The cafe/restaurant spaces facing the park seem quite interesting and may turn out to be good hangout place for the area.These spaces are not open for biz yet.
*Retail space assumption of $5,000 psf is at the low end of CES' $4,000+ to $8,000 psf sale prices for Alexandra Central. 
*Office space assumption of $1,600 psf compares well with Paya Lebar Square's $1,550-$1,980 psf when it was sold last year. Now owners are asking above $2,000 psf in the sub sales market.
 
 

 
Today Tan Yong Keng bought another 400k shares @ average price of 75 cts bring his holding to 5.7722%.

Your sharing is much appreciated, Sumer.  I now know how you derive RNAV of Superbowl. Gives me a good reason to continue to hold this stock -- at least until it reaches S$1.00.

Another thing to check with you is, what do you expect the operating results of Superbowl & Hiap Hoe to be as a result of the 2 hotels? Wouldn't there be some losses from the hotels in 1H2013 due to initially low ARR & AOR. ?
 

Today Tan Yong Keng bought another 400k shares @ average price of 75 cts bring his holding to 5.7722%.

Tan Yong Keng today bought another 500 k shares bring is holding to 5.8498%.
His interest in Chip Eng Seng will help the share price to mrise closer to it's fair value.
 
 
 

hi Sumer,

Thanks for your sharing on Superbowl/ Hiap Hoe. But i got some doubt over the definition of the below paragraph detached from your analysed:

Valuation surplus of ZP per Superbowl share = 82.6 cents (Hiap Hoe's share: 57.2cts because of its larger market cap)

How u defined Hiap Hoe at 57.2cts because of its larger cap?