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Land value increased 10 times in 3 years? - M.A. Wind

Tan KW
Publish date: Tue, 28 Mar 2017, 10:42 AM

Tuesday, 28 March 2017 

 
Boustead Plantations announced it proposes to sell a piece of land for RM 620.1 Million:



The company specified the cost of investment:



The company gave more background over the history of the land:



Regarding the acquisition of the land, we can find more announcements here, the independent advice circular (dated November 20, 2013) of the Al-Hadharah Boustead REIT which was subsequently delisted.

The acquired land consists of 678 hectares of the 1,379 hectares from the Malakoff Estate in Penang:





In other words:

  • Boustead Plantations proposes to sell a piece of land for RM 620.1 Million based on a valuation report by Raine & Horne dated December 1, 2016.
  • The land was acquired for only RM 60.4 Million three years earlier based on a valuation report by WTW dated September 5, 2013.
  • The difference in valuation is more than ten times over only three years, which seems shocking.

While the deal appears to be good for shareholders of Boustead Plantations, the previous unit holders of Al-Hadharah Boustead REIT might feel short changed.

The authorities should look into the two valuation reports (both the valuation given and the methods used), the difference in value looks much too large.

They should also revisit the delisting exercise of Al-Hadharah Boustead REIT to review if the deal for minority shareholders was indeed "fair and reasonable", as the independent adviser (Hong Leong Investment Bank) claimed.

 

http://cgmalaysia.blogspot.my/2017/03/land-value-increased-10-times-in-3-years.html

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1 person likes this. Showing 6 of 6 comments

stockmanmy

Tabung Haji needed the money more than the uncles and aunties in Reits.

2017-03-28 12:58

choop818

Your luck if you are in the right pocket. By `right' here doesn't mean you are in the correct pocket.

2017-03-28 13:16

hpcp

SC should question the so-called independent adviser

2017-03-28 15:15

michael_jackson

Yes...why not? got willing buyer and willing seller...bplant board of directors are very smart people and generous...they should increase the land value to 20~30 times by independent valuer...Shareholders got benefit when the board of directors willing to share profits and not stingy like those china stocks....keep it up, bplant!!!!

2017-04-01 23:31

rainbowyen

Independent adviser is professional people...next time please increase the land value 20 times...good news for bplant and shareholders....more profits to share is much better than nothing...

2017-04-03 05:14

malaysiakuku

tahniah bplant!!!....kalau boleh naikkan nilai hartanah 50 kali ganda...macam ini baru kita orang dapat special dividen dan extra extra bonus....kalau bplant dapat menyakinkan penilai hartanah bertauliah yang dapat menaikkan harga hartanah lebih tinggi, maka bonuslah namanya....durian runtuh!!!!.... horray!!!!

2017-04-03 17:59

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