From GMG presentation - see Pro Forma Balance Sheet, page 24 it looks like the Net asset backing per share if CIC and MQG exercise their option is only 0.54 per share.
At todays SP this makes it one of the most expensive REIT's just behind the likes of Westfield and Stockland.
There are also some substantial intangibles included - of 1.125 billion.
It looks a bit expensive. The only way I could justify the price would be if China relationship indeed takes off and this becomes a growth story.
It would not be hard to find REITs with much higher discount to hard cold real estate assets. As much as 50% or more.
I owned some GMGs from 20c times sold today but still have the SPP rights - not sure if I should participate - sounds a bit risky to me. Will decide in September.
Cheers
MLC
GMG Price at posting:
$2.58 Sentiment: None Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)