careful, page-33

Hi Roadster,

Thank you for your detailed comments.

I have a question, as I understand, they have repackaged a large part (if not most) of the properties they bought in the Scarborough deal into funds for property investors. Haven't they?


Could you be a bit more specific on their fee income structure for the fund management business? I've checked with Investor Relations that base fee is linked to GAV, and not sure about the other fees.

At the current share price, I still think there is value in there. If it is 1$ and with such business profile, then I won't buy it at all.

I can see that they are doing the right things to restore the confidence now eg.
-disposing its VCS businesses,
-cost cutting to preserve value and also in anticipation of not much new business in the near term;
-to re-focus on fund management business

surely it takes time for property investors' confidence to be restored. But the value recovery is inevitable- slow or quick. We are also seeing unprecedented low interest rate in the UK, and historical low rate here in Australia.

As mentioned by a UK economist (An--- --Sky in yesterday's post), the UK market is likely to recover more quickly.

I presume, you would appreciate that most brokers/investment house cover only blue chip stocks.

VPG, with its current circumstance, is not amongst them, and thus not covered.

The key questions here are:
1. is VPG close to insolvency?
2. does the current share price present value for investors?

I presume many of us would agree no to Q1, and yes to Q2.

Any thoughts?