careful, page-78

Whitebeachlover,
I would doubt any of the VCS positions would hold 1st mortgages. Valad equity in these projects is preferred to their joint venture partner, but always ranks behind a senior debt position. So at best Valad will have a 2nd ranking mortgage
Additionally Valad equity, (thru VCS )is typically the largest piece of the equity, ie Valad 80% and JV partner 20%. So whilst it is preferred equity, ie it is secured ahead of the JV partner, when the first 20% is wiped out, then Valad equity is diluted next. Considering the gearing on most of these assets will be high, greater than 50%( more in some cases) and a lot of the portfolio is development stock, Valad have great risk of writedowns.
It all adds up to making the NTA of Valad very difficult to value.
Look at the earnings composition, rental income less than 40%, gives an idea how much of the business is reliant on risk, and or non core investment property.