Miramar Hotel Recommendation: Speculative buy Brokerage: G K Goh G K GOH estimates the net asset value of Miramar Hotel to be about $20 per share. Its estimate is based on the assumption each of the 500 rooms is worth $2.7 million.
The new Park Lane Square Phase Two is worth $7.06 billion, assuming office space (500,000 square feet) is worth $6,000 per square foot, retail space (310,000 sq ft) is worth $13,000 per sq ft and each car parking space (65 sq ft) is worth $500,000.
Phase One of Park Lane is worth $1.6 billion under the assumption the office space (180,000 sq ft) is worth $5,000 per sq ft and the retail space (54,000 sq ft) is worth $13,000 per sq ft.
The three pieces of property in Tsim Sha Tsui are worth $18.83 per share, not to mention the 10 pieces of property scattered around Hongkong and the 2,025 hectares of land in California.
Even with the $962 million debt, which is likely to have risen to $1.3 billion, the brokerage estimates the net asset value of Miramar is about $20 per share. The brokerage rates the stock a speculative play because it feels the $15.50 bid will have to be improved on.
Hongkong Land Recommendation: Buy Brokerage: Smith New Court Strong demand for the shrinking supply of Grade A offices in core Central is working to Land's advantage. Rising rents mean the low four to five per cent yields of recent transactions are likely to reverse.