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Will I sell my house at 49% discount to market price?

Absolutely NO.

Unless I am so desperate for cash to meet the immediate commitment and I have no better choice.

And the deal is concluded after 20 expressions of interest from various parties.

Yes, I am referring to the acquisition of Macquarie Prime Reit by YTL Corp yesterday.
YTL was paying 82 cents a unit for Macquarie Prime Reit. The price is a 49 per cent discount to Macquarie Prime Reit's net asset value, and a 52 per cent premium over its last traded price on Friday of 54 cents.


This episode is meaningful because it reminds us again that what is the true meaning of ‘value’. We may have long argument to determine the value of an asset. However, it is safe to say that it can not be easily identified by NAV. P/B or the balance sheet. But, the simple principle of SUPPLY AND DEMAND prevail.

Be mindful in doing bottom fishing on the pretext of 'value'.



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