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. Land can justifiably expect strong rental growth in the current office cycle as the demand-supply balance is in its favour. Land is reversing its net-seller position by investing in CT9, Trafalgar House and possibly the redevelopment on reclaimed land in front of Exchange Square. Now that Land has 25.1 per cent of Trafalgar House, it is no longer interested in UK properties nor taking any assets from Trafalgar, but is making better use of Trafalgar's engineering expertise in Asia which is based on Jardine's connections in the region. The sale of Nine Queen's Road is a defensive move since core Central is moving forward because of the reclamation. Land is already planning for the reclamation redevelopment by getting the Japanese Consulate into Exchange Square. This should attract other Japanese tenants.