Saturday, August 2, 2008

Unitech Corporate Parks Results & Leasing Update

Unitech Corporate Parks (UCP) recently released its audited results for the year. The report has very limited disclosure on how the valuations have been computed. The stated NAV is £1.7408 while the stock is quoting at less 50 p (a discount to NAV of over 70!). Obviously, the market assessment of the valuation is very different from Knight Frank's assumptions.

UCP also released a leasing update that indicates the company has been able to lease 11.9% of total leasable area (across all planned projects). Considering the broadbased slowdown in the economy and the huge supply of office space coming on stream, we expect the run-rate for leasing to be much lower going forward.

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