CapitalandInvest will begin trading on Monday, 20th of September. It should be introduced at around 1 p/book, or $2.82 per share according to Capitaland’s documents.
The question that on everyone’s mind now is: what’s its market worth?
The value proposition
Capitaland strongly implies it’s worth more than this “introductory price” at book value. To support their argument, they’re showing that pure listed property manager trade at higher P/E multiples and above book value as compared to property developers which typically trade lower.
In their basket of manager, they picked Charter Hall, Goodman, Lendlease and ESR Cayman. It’s fair, but they omitted some which do not support their view. The best example is Cromwell Property Group, which trades under book value and with P/E ratio under 10.