International Plaza’s reserve price unlikely to boost Hong Fok’s NAV

It was reported by EdgeProp.sg that International Plaza has been put up for collective sale with a price tag of $2.7 billion. Of course, at first glance, the initial beneficiary is likely to be Fuji Xerox Towers, owned by City Developments (CDL), which is being torn down. Even without the benefit of International Plaza’s mouth watering price tag, Fuji Xerox Towers is likely to add as much as $1 billion to CDL’s revalued net asset value when fully developed in 2025.

In general, property stocks trade at large discounts to their net asset values and CDL is no exception, currently trading at 0.74 times its latest reported NAV of $9.22. In our RIght TIming and Financially Savvy columns, we have put forward reasons and theories as to why many property stocks trade at these large discounts to NAV.

One of the stocks in the list of top 20 asset-based stocks trading at discounts to NAV is Hong Fok Corp, which at its current price is trading at just 0.27 times its NAV of $2.95.