GuocoLand can unlock value just by listing Guoco Tower as a single-property Reit

THIS Friday (Oct 14), at 10am, shareholders of real estate group GuocoLand will have the opportunity to pose questions to management at the company’s annual general meeting. On the agenda, perhaps, will be how the board and management hope to unlock value for shareholders.

The group, in which tycoon Quek Leng Chan holds a direct and deemed interest of about 72 per cent, traded at a 58 per cent discount to its end-June net asset value (NAV) per share of S$3.86, based on its close on Wednesday at S$1.64.

There are reasons to be positive about the group’s prospects. GuocoLand posted a 122 per cent rise in net profit for the six months ended Jun 30. And 84 per cent of the homes in its Lentor Modern project were sold over two days at its launch last month. But the jewel in GuocoLand’s crown is, arguably, Guoco Tower in Tanjong Pagar, in the Central Business District (CBD).