NEW era begins for Li flagship on June 3 by Imogene Wong
Soon-to-be-listed Cheung Kong Property Holdings is valued at HK$420 billion, with a net asset value of HK$259.3 billion, or HK$67.18 per SHARE, according to an investor presentation made yesterday.
The group, controlled by Li Ka- shing, will begin TRADING on June 3 under stock code 1113.
Shares of Hutchison Whampoa (0013) will cease TRADING after May 26. Analysts said the listing would probably be priced with reference to peers, which means a NAV discount of about 20 to 30 percent.
Estimated turnover of the new firm was HK$46.6 billion last year, with two thirds contributed by local BUSINESSES. Earnings before interest, taxes and other fair value changes were HK$19 billion, or a 40.7 percent EBIT margin.
Local properties accounted for HK$269 billion, or 64 percent of its assets as of February. About a third is located in the mainland, while the rest are overseas, including SINGAPORE, Britain and the Bahamas.
In terms of asset class breakdown, more than half are development properties. About [b]30 percent are INVESTMENT properties[/b] and 16 percent are HOTELS AND serviced suites.
The developer also holds interests in three listed REITs and ARA Asset Management, worth a combined HK$13.1 billion, which are excluded in the firm's valuation.
The firm has more than 14,600 HOTEL ROOMS, of which 83 percent are in 14 hotels in Hong Kong mainly under Harbour Grand and Harbour Plaza brands. The market value of some of its hotel rooms in Hung Hom and Tsim Sha Tsui ranges from HK$5.78 million to HK$10.57 million per room.
Deputy chairman Victor Li Tzar-kuoi said in March that the hotel assets are still BOOKED at a very conservative value without proper revaluation.
Its predecessors, Cheung Kong Holdings and Hutchison, have boosted the fair value of part of the properties by over HK$30 billion last year.
He added that these assets are definitely not for sale under such cheap valuations.
Highlights of its investment properties include Cheung Kong Center in Central, which is valued at HK$27 billion, with annual rent of HK$1.51 billion.
The 1881 Heritage has a higher rental yield of 6.1 percent.
Source: The Standard HK