$The Place Hldg(E27.SI)

 

What is the potential value of The Place Holdings&rsquo s stake in Tianjie Yuntai Wanrun (Xiuwu) Property Development Co., Ltd?

I have stated in my last 2 writeup &ndash Check them out. But I will do the calculation here.

In summary:

 

As per annual report &ndash &ldquo In November 2020, the Group announced it had completed the subscription of a 80% stake in Tianjie Yuntai Wanrun (Xiuwu) Property Development Co., Ltd. which owns approximately 270,500 square metres of commercial land in the Southeast of Mount Yuntai. In March 2021, the Group had completed the change in land zoning of Wanrun&rsquo s Land from commercial to residential. This not only increases the gross floor area (&ldquo GFA&rdquo ) and allows the project to be marketed to a wider group of potential buyers, it also increases the land use rights from its existing 40 years to 70 years&rdquo

Search 云 台 山 恒 大 养 生 谷 on Baidu &ndash a location near Yun Tai San (Go and find out on the Baidu map). The cost is this 普 通 住 宅 均 价 ： 7500元 /m² 洋 房 均 价 ： 9500元 /m² 叠 拼 均 价 ： 11000元 /m²

 

Source: https://jiaozuo.newhouse.fang.com/loupan/2514144749.htm

 

So the potential value is : 270,500 x 7000 x 80% = RMB$ 1,514,800,000.00 (7000 to be conservative)

 

Assume SGD to RMB: 1: 5 (Conservative)

1,514,800,000.00 / 5 = S$302m

 

This is around 1/3 of the market cap currently based on conservative figures excluding the SG property business and the Media and event management business.

$The Place Hldg(E27.SI) how much will the place holdings land in China be worth?

 

I found an area where it is close to The Place Holding' s land in China.

 

Check out 云 台 山 恒 大 养 生 谷 . This is one of the website in china that states the prices: https://jiaozuo.newhouse.fang.com/loupan/2514144749.htm

 

Do your own calculation

$The Place Hldg(E27.SI)

Wanrun&rsquo s Land Use Right

 

As also disclosed in the 2018 Circular, Wanrun was initially granted the land use right (expiring in October 2051) for a piece of commercial land with an area of approximately 270,500m2 in South East of Mount Yuntai (the &ldquo Land&rdquo ). The Land is part of Mount Yuntai Integrated Tourist Township Project, to be developed by JTYI and its related entities. As a condition for granting the land use right, Wanrun had committed to invest a minimum amount of RMB243,450,000 (approximately $49,347,000) to develop the Land (Note 23).

 

As announced by the Company on 1 November 2020, following the acquisition of Wanrun, the Group had applied to the relevant authorities to change the land zoning of the Land from commercial to residential type. Subsequent to the financial year, in March 2021, the requisite approvals for the change in zoning was procured and the Land could now be developed for residential purposes. The expiry date of the land use right has also been extended to October 2081. As significant development activities will be carried out on the Land in future, the land use right is classified as a &ldquo development property&rdquo (Note 7(a)) for the purpose of the Group&rsquo s financial statements as at 31 December 2020.

 

https://links.sgx.com/1.0.0/corporate-announcements/H6A3NUACITF6IPHY/f47dd80c3ff2305233cbd0ccc4d62d471a27c565741b92fce2b75c9e9bed70cf