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Hi all,
Please don't compare Mapletree's recent bid against Teckwah's directly. Mapletree's project has an additional White 1.0 component, which means it can develop approx 13,000 sq of any of the MP zoning: Industrial, commercial or residential units; it is likely to be commercial ( the highest value among the MP zoning). Therefore, if one is to value, one has to net off the retail space Mapletree can rent out.
No doubt Teckwah's land bid in 2011 is undervalued but the gap in valuation is not as big as what many members may think (due to the white 1.0 [will be 1.1 if Mapletree can use the green incentive]. This has to be factored in the valuation. I personally prefer to value Pixel Red in accordance to the s$6.0M annual PAT gain from rental saving and leasing of extra space across the next 58 years of tenure; at say discount rate of 7%?
Please don't compare Mapletree's recent bid against Teckwah's directly. Mapletree's project has an additional White 1.0 component, which means it can develop approx 13,000 sq of any of the MP zoning: Industrial, commercial or residential units; it is likely to be commercial ( the highest value among the MP zoning). Therefore, if one is to value, one has to net off the retail space Mapletree can rent out.
No doubt Teckwah's land bid in 2011 is undervalued but the gap in valuation is not as big as what many members may think (due to the white 1.0 [will be 1.1 if Mapletree can use the green incentive]. This has to be factored in the valuation. I personally prefer to value Pixel Red in accordance to the s$6.0M annual PAT gain from rental saving and leasing of extra space across the next 58 years of tenure; at say discount rate of 7%?