Here are my thoughts on the valuation:- you could probably be...

Here are my thoughts on the valuation:

- you could probably be very confident the auditors have sighted the signed lease, particularly with the introduction of AASB 16 Leases. It would be sheer incompetence and negligence on their behalf if they haven’t.
- I have verified the piece of land exists myself, albeit not the exact size or dimensions but I can attest that it’s a pretty big piece of land as it’s fenced off with security manning access to the premises. Likewise for Tony from EGP who has been to the premises I believe.
- auditors rely on valuation from experts when it comes to PPE. Tony from EGP may not be an “expert” when it comes to valuing properties in the traditional sense of the word, but if you’ve read any of his commentary on UOS you’d realise pretty quickly that the detail and in-depth knowledge he has of a much more complicated portfolio of projects being built is quite staggering. I’m happy to trust Tony’s judgement as an expert when it comes to the value of the land.

I don’t think SIT are going to get into the developing and building business, but if they do it would be a minority interest where the developer(s) do all the work. Their goal is to simply execute an agreement to unlock the value.

At current market cap of $13 million, even if they only receive $75 million anyone who buys today would be laughing. If it hangs around at these levels long enough, I’ll most likely end up buying some directly in my name with next month’s savings.

This is akin to buying a run property with no tenant on a piece of land worth $1 million for $100k. If you can handle paying the insurance, water rates and council bills and do some renovations, you might be able to realise closer to fair value of $1 million... so maybe you spend $100-$200k to get a tenant in and realise potentially $700k by selling it.