Just my view but Becton is probably more valuable in the sum of its parts then what is being shown.
It has a significnant funds management business, is a well respected builder of quality homes and apartments and holds well performing and niched retirement villages. They are also tied into government projects for sustained urban development and community housing.
Apartment and homes are priced in the first home level. Probably the only part of the real estate market in my view that will have any traction in the medium term.
Problem is the debt, but with a large portion project specific it is not recourse to Becton. Debt in property trusts under management is also a concern, especially the retail fund, as valuations fall back.
If Becton can survive the current crisis it has a large development pipeline which should allow for significant growth. Focus will be on the retirement assets.
If it were to fail, the purchase of the Fincorp assets may have been that one step to far. However the management is good.
Thought it would be a taker over target for larger players who were looking for access to retirement assets such as SGP and LLC. However, don't think these companies want further exposure to the construction and development side at present.
Potential to be sold off in parts but it will forever diminish enterprise value. Could be a good buy for a private equity deal as minimal capital (in relative terms)will buy this company and its assets (many of which are high quality).
My view only and I hold
BEC Price at posting:
$14.20 Sentiment: Hold Disclosure: Held
