NTP - Nam Tai Property

[lathinker]

Hey all:

 

I am optimistic on NTP and I know Mr. Koo is a very capable operator...I've held shares for many years.  My family has owned shares since 1989....I used to own thousand & thousands of share and saw a huge percentage of my wealth go up in smoke when NTP turned down their Apple contracts...

 

I still think good things are ahead for NTP....

 

But $6/share in earnings?  whut WHUT?  That might be $6/share in HKD, which would translate to something like $1/share in USD.

 

If it is $6/share USD, then NTP is the cheapest stock out there...bar none.

 

I just don't see it.  Neither do those old dudes in NYC, the Kahn Brothers.  They've held the stock for a long time and they just sold a big chunk of their holdings.  Why would they sell when riches are just around the corner?

 

NTP is going to do well, but it is still going to take some time.

 

Stories of $6/usd in per share earnings are nothing more than pipe dreams...

 

Oh boy, I remember the apple days. I feel your pain just thinking about it

 

I'm not sure how he's getting 1.5-2.0B HKD either. Maybe it is rent, very aggressive assumptions at that, and 10 years down the line. China changes much, so I guess who knows... I remember my shock when I visited Pudong in Shanghai for the second time and then the shock again on the third visit. 

 

I don't think most of us are in it for that scenario though. Assuming the gap to NAV closes down the line, $1 or 7 RMB will be enough to generate attractive returns. I personally think there is a high chance both of those happens.

 

Koo is certainly a very successful businessman. But I'm not sure how he gets $200m annual profits from these real estate development. The total floor area under development for two projects is 684,168 square meters. Last I checked in Shenzhen A office rent is about RMB200/meter/month. So the revenue will be about $234m per year. Since I know nothing about commercial real estate management, I'd guess there will be some expenses. In addition, the estimate to build the whole thing will be about $800m. So he'll need to finance a significant portion of that. And finally, what NTP has is two piece of land with manufacturing zoning, which he need to pay a fee to convert them into commercial use (one of them might already been paid, though I'm not 100% sure).

 

That said, I think NTP can still be cheap with net cash per share around $5. But there is a lot of risk with the real estate projects. I'd rather see them build the real estate and sell or just simply sell the land. IMO GSOL is a much better bet if you like Shenzhen (or Chinese) real estate. GSOL has a profitable business on top of very attractive existing Asia real estate portfolio that are already receiving rent.

 

I was sligthly stunned when I saw the expectation aswell.

It is tough for me to predict wheren rental prices in Shenzhen will be in 3 or 5 years, however, historically there have been annual increases of 10-20% p.a. (on a local currency basis) Say the 234mm USD expectation was 300mm USD by the time they open. They have agreed a 5y financing facility with China Construction Bank of 750mm USD  (covering most of the expected construction cost of 840mm USD). Where might that be priced? Assuming a 5% rate (spread of 320 bps for over 5y swap; if secured I would think is is rather high; but again have no insight into the market) would mean interest cost of 38mm USD. If they  can operate this for 50mm USD a year (not sure if realistic, but I do not see why operating should be so expensive) and pay 15% tax,  a Cash Flow of 200mm USD does not appear that unreal. Let's wait and see, I am still invested and might add upon weakness.

 

[greenwave]

Hey all:

 

I am optimistic on NTP and I know Mr. Koo is a very capable operator...I've held shares for many years.  My family has owned shares since 1989....I used to own thousand & thousands of share and saw a huge percentage of my wealth go up in smoke when NTP turned down their Apple contracts...

 

I still think good things are ahead for NTP....

 

But $6/share in earnings?  whut WHUT?  That might be $6/share in HKD, which would translate to something like $1/share in USD.

 

If it is $6/share USD, then NTP is the cheapest stock out there...bar none.

 

I just don't see it.  Neither do those old dudes in NYC, the Kahn Brothers.  They've held the stock for a long time and they just sold a big chunk of their holdings.  Why would they sell when riches are just around the corner?

 

NTP is going to do well, but it is still going to take some time.

 

Stories of $6/usd in per share earnings are nothing more than pipe dreams...

 

Oh boy, I remember the apple days. I feel your pain just thinking about it

 

I'm not sure how he's getting 1.5-2.0B HKD either. Maybe it is rent, very aggressive assumptions at that, and 10 years down the line. China changes much, so I guess who knows... I remember my shock when I visited Pudong in Shanghai for the second time and then the shock again on the third visit. 

 

I don't think most of us are in it for that scenario though. Assuming the gap to NAV closes down the line, $1 or 7 RMB will be enough to generate attractive returns. I personally think there is a high chance both of those happens.

 

Koo is certainly a very successful businessman. But I'm not sure how he gets $200m annual profits from these real estate development. The total floor area under development for two projects is 684,168 square meters. Last I checked in Shenzhen A office rent is about RMB200/meter/month. So the revenue will be about $234m per year. Since I know nothing about commercial real estate management, I'd guess there will be some expenses. In addition, the estimate to build the whole thing will be about $800m. So he'll need to finance a significant portion of that. And finally, what NTP has is two piece of land with manufacturing zoning, which he need to pay a fee to convert them into commercial use (one of them might already been paid, though I'm not 100% sure).

 

That said, I think NTP can still be cheap with net cash per share around $5. But there is a lot of risk with the real estate projects. I'd rather see them build the real estate and sell or just simply sell the land. IMO GSOL is a much better bet if you like Shenzhen (or Chinese) real estate. GSOL has a profitable business on top of very attractive existing Asia real estate portfolio that are already receiving rent.

 

I was sligthly stunned when I saw the expectation aswell.

It is tough for me to predict wheren rental prices in Shenzhen will be in 3 or 5 years, however, historically there have been annual increases of 10-20% p.a. (on a local currency basis) Say the 234mm USD expectation was 300mm USD by the time they open. They have agreed a 5y financing facility with China Construction Bank of 750mm USD  (covering most of the expected construction cost of 840mm USD). Where might that be priced? Assuming a 5% rate (spread of 320 bps for over 5y swap; if secured I would think is is rather high; but again have no insight into the market) would mean interest cost of 38mm USD. If they  can operate this for 50mm USD a year (not sure if realistic, but I do not see why operating should be so expensive) and pay 15% tax,  a Cash Flow of 200mm USD does not appear that unreal. Let's wait and see, I am still invested and might add upon weakness.

 

----

lathinker

 

After re-reading the recent sec filings again today -- and the very detailed summary post by: jawn619 on: March 22, 2016;

I concur with you that .... "a Cash Flow of 200mm USD does not appear that unreal."

 

It seems obvious to me that this is an extraordinary real estate project, being developed by well connected principals.

 

Thank you for shedding a little more light today (and in your previous posts ) about this unique development . As you say, we will wait and see...

 

greenwave

 

[atbed]

Hey all:

 

I am optimistic on NTP and I know Mr. Koo is a very capable operator...I've held shares for many years.  My family has owned shares since 1989....I used to own thousand & thousands of share and saw a huge percentage of my wealth go up in smoke when NTP turned down their Apple contracts...

 

I still think good things are ahead for NTP....

 

But $6/share in earnings?  whut WHUT?  That might be $6/share in HKD, which would translate to something like $1/share in USD.

 

If it is $6/share USD, then NTP is the cheapest stock out there...bar none.

 

I just don't see it.  Neither do those old dudes in NYC, the Kahn Brothers.  They've held the stock for a long time and they just sold a big chunk of their holdings.  Why would they sell when riches are just around the corner?

 

NTP is going to do well, but it is still going to take some time.

 

Stories of $6/usd in per share earnings are nothing more than pipe dreams...

 

Oh boy, I remember the apple days. I feel your pain just thinking about it

 

I'm not sure how he's getting 1.5-2.0B HKD either. Maybe it is rent, very aggressive assumptions at that, and 10 years down the line. China changes much, so I guess who knows... I remember my shock when I visited Pudong in Shanghai for the second time and then the shock again on the third visit. 

 

I don't think most of us are in it for that scenario though. Assuming the gap to NAV closes down the line, $1 or 7 RMB will be enough to generate attractive returns. I personally think there is a high chance both of those happens.

 

Koo is certainly a very successful businessman. But I'm not sure how he gets $200m annual profits from these real estate development. The total floor area under development for two projects is 684,168 square meters. Last I checked in Shenzhen A office rent is about RMB200/meter/month. So the revenue will be about $234m per year. Since I know nothing about commercial real estate management, I'd guess there will be some expenses. In addition, the estimate to build the whole thing will be about $800m. So he'll need to finance a significant portion of that. And finally, what NTP has is two piece of land with manufacturing zoning, which he need to pay a fee to convert them into commercial use (one of them might already been paid, though I'm not 100% sure).

 

That said, I think NTP can still be cheap with net cash per share around $5. But there is a lot of risk with the real estate projects. I'd rather see them build the real estate and sell or just simply sell the land. IMO GSOL is a much better bet if you like Shenzhen (or Chinese) real estate. GSOL has a profitable business on top of very attractive existing Asia real estate portfolio that are already receiving rent.

 

I hope I'm wrong about the $200M! The mix just isn't all office and I don't think they get CBD Class A rent for Inno Park.

 

I'll take a look at GSOL. I'm actually interested in Shenzhen / Shanghai / Beijing commercial real estate because certain properties seem like they can be a bargain as buy & hold.

[greenwave]

Hey all:

 

I am optimistic on NTP and I know Mr. Koo is a very capable operator...I've held shares for many years.  My family has owned shares since 1989....I used to own thousand & thousands of share and saw a huge percentage of my wealth go up in smoke when NTP turned down their Apple contracts...

 

I still think good things are ahead for NTP....

 

But $6/share in earnings?  whut WHUT?  That might be $6/share in HKD, which would translate to something like $1/share in USD.

 

If it is $6/share USD, then NTP is the cheapest stock out there...bar none.

 

I just don't see it.  Neither do those old dudes in NYC, the Kahn Brothers.  They've held the stock for a long time and they just sold a big chunk of their holdings.  Why would they sell when riches are just around the corner?

 

NTP is going to do well, but it is still going to take some time.

 

Stories of $6/usd in per share earnings are nothing more than pipe dreams...

 

----

DTEJD1997 ,

 

Regarding your mention  of the Kahn Brothers reduction in  the number of shares they now own :

 

{.... "I just don't see it.  Neither do those old dudes in NYC, the Kahn Brothers.  They've held the stock for a long time and they just sold a big chunk of their holdings.  Why would they sell when riches are just around the corner?......." }

 

For what it's worth , the following explanation was posted several weeks ago on another investing message board .

 

......" The Kahn stock that was sold was not Kahn's proprietary stock, I am told. It was a client's stock who wanted out, needed liquidity, was impatient, whatever. From looking at several similar comps and talking to ONE experienced Chinese Hong Kong Developer, I am a believer that the Shenzhen properties are worth $500 million (that is U.S.)....."

 

greenwave

 

[lathinker]

About a week ago, NTP posted three updated valuation reports on their projects:

 

http://namtai.com/investors#investors/real_estates

 

NTP mentioned explicitly that the valuers were instructed to valued based on long-term leasing (i.e. not immediate selling in a probably overheated market).

All reports show value invcreases compareed to last year, with values for the properties between 310 and 730 mm USD. Taking the lowest property value of the reports, adding cash and marketable securites and deducting all liabilities, I get to a value of 13.70 USD/share - compared to a current share price of about 7.70.

 

[greenwave]

About a week ago, NTP posted three updated valuation reports on their projects:

 

http://namtai.com/investors#investors/real_estates

 

NTP mentioned explicitly that the valuers were instructed to valued based on long-term leasing (i.e. not immediate selling in a probably overheated market).

All reports show value invcreases compareed to last year, with values for the properties between 310 and 730 mm USD. Taking the lowest property value of the reports, adding cash and marketable securites and deducting all liabilities, I get to a value of 13.70 USD/share - compared to a current share price of about 7.70.

 

-----

lathinker

 

The population growth of Shenzhen seems to me to support the "optimistic valuations" for the  two planned developments.

From my experience as an investor in  Nam Tai over the past 8 years or so , Mr Koo and team have always been known as very conservative and straight-forward  business people.

 

 

Re: "Shenzhen population growth"

 

Shenzhen population

Shenzhen is now the most crowded city in China, with more than 15 million people living in Shenzhen it has a population density higher than Guangzhou, Beijing and Hong Kong. The 15 million people that live in Shenzhen’s 1,991 square kilometers create a population density of 7,500 people per square kilometer.

 

This suggests a very robust demand for space either for living or business.

 

greenwave

 

[greenwave]

About a week ago, NTP posted three updated valuation reports on their projects:

 

http://namtai.com/investors#investors/real_estates

 

NTP mentioned explicitly that the valuers were instructed to valued based on long-term leasing (i.e. not immediate selling in a probably overheated market).

All reports show value invcreases compareed to last year, with values for the properties between 310 and 730 mm USD. Taking the lowest property value of the reports, adding cash and marketable securites and deducting all liabilities, I get to a value of 13.70 USD/share - compared to a current share price of about 7.70.

 

-----

lathinker

 

The population growth of Shenzhen seems to me to support the "optimistic valuations" for the  two planned developments.

From my experience as an investor in  Nam Tai over the past 8 years or so , Mr Koo and team have always been known as very conservative and straight-forward  business people.

 

 

Re: "Shenzhen population growth"

 

Shenzhen population

Shenzhen is now the most crowded city in China, with more than 15 million people living in Shenzhen it has a population density higher than Guangzhou, Beijing and Hong Kong. The 15 million people that live in Shenzhen’s 1,991 square kilometers create a population density of 7,500 people per square kilometer.

 

This suggests a very robust demand for space either for living or business.

 

greenwave

----

News  re: Nam Tai Property Inc.

 

Nam Tai Property Inc. Announces Share Purchase by Kaisa Group

BY PR Newswire

 

— 6:30 AM ET 07/12/2017

SHENZHEN, China, July 12, 2017 /PRNewswire/ -- Nam Tai Property Inc. ( NTP

 

) ("Nam Tai" or the "Company") today announced that its Chairman, M.K. Koo ("Mr. Koo"), has, in his capacity as a stockholder, entered into a share purchase agreement to sell 6,504,355 shares of the Company held by him and his wife at a price of US$17.00 per share, reflecting a premium in excess of 100% of the Company's 30-day trading average, to a real estate developer listed on the The Stock Exchange of Hong Kong Limited (the "HKSE"), Kaisa Group Holdings Ltd. (1638:Hong Kong) (the "Kaisa Group"). The sale is scheduled to complete no later than August 11, 2017, after the release of the Company's second quarter financial results, and subject to Kaisa Group's satisfaction with its due diligence review and other customary closing conditions. For further details, please refer to the Schedule 13D filed by Mr. Koo today. .........

 

If interested , see  details at PR Newswire

 

greenwave

 

[mttddd]

That's quite the markup in price, even with the bump today its still nearly twice market price. Hopefully these guys have big plans

[HJ]

Isn't the transaction a bit of slap in the face to the non-controlling shareholders?  The chairman and his family cashes out, and leave the minority guys at the whims of Kaisa?  Shouldn't they have negotiated for a full take over of the company?  Is that why the US market is not pricing up the actual chairman's take out price?

[atbed]

Isn't the transaction a bit of slap in the face to the non-controlling shareholders?  The chairman and his family cashes out, and leave the minority guys at the whims of Kaisa?  Shouldn't they have negotiated for a full take over of the company?  Is that why the US market is not pricing up the actual chairman's take out price?

 

Maybe a full buyout is not off the table.

[HJ]

Isn't the transaction a bit of slap in the face to the non-controlling shareholders?  The chairman and his family cashes out, and leave the minority guys at the whims of Kaisa?  Shouldn't they have negotiated for a full take over of the company?  Is that why the US market is not pricing up the actual chairman's take out price?

 

Maybe a full buyout is not off the table.

 

Nothing is off the table, but just observing how some of the Chinese companies lie to raise money, and after a stock falls, try to buy back whatever assets is left in the company at a discount, often with the minority share holder's money, sets off all kinds of alarm bells here. 

 

In addition, it's not like Kaisa itself has had an un-checkered history, having just emerged from bankruptcy.  It's always possible they may treat the minority shareholders fairly in the future, but will they?

[atbed]

Isn't the transaction a bit of slap in the face to the non-controlling shareholders?  The chairman and his family cashes out, and leave the minority guys at the whims of Kaisa?  Shouldn't they have negotiated for a full take over of the company?  Is that why the US market is not pricing up the actual chairman's take out price?

 

Maybe a full buyout is not off the table.

 

Nothing is off the table, but just observing how some of the Chinese companies lie to raise money, and after a stock falls, try to buy back whatever assets is left in the company at a discount, often with the minority share holder's money, sets off all kinds of alarm bells here. 

 

In addition, it's not like Kaisa itself has had an un-checkered history, having just emerged from bankruptcy.  It's always possible they may treat the minority shareholders fairly in the future, but will they?

 

Isn't Kaisa just along for the ride like all shareholders? It seems they just bought ordinary shares. While their stake gets them a board seat and maybe more, Kellogg and IAT still control a large stake.

 

I'm not sure how this situation compares to the one you are describing - regarding raising money and then buying back cheaper stock.

 

That said, a tender offer at $17 for ~6.5M would have been fairer for all shareholders.

[DTEJD1997]

Hey all:

 

NTP made a bit of a move and hit a 52 week high today, just over $11/share.  Plenty of shares traded also, about 7x normal volume. 

 

No news that I can find.

 

Anybody know anything?

[portfolio14]

I don't know how you guys think of it. But I'm completely out of it at $10.

 

Apply a bit of Mungerism. If you invert it, ask yourself: assume you own no NTP and someone tells you Kaisa has just taken control over this net-net public listed property developer called NTP, will you buy it? You will look at Kaisa's history, not NTP's history. You will see all sorts of red flags. Huge risk of them "stealing" the 200m cash to cover their other businesses.

 

To me, Koo at the helm was a margin of safety, part of the thesis. So, the painful truth is that thesis is broken. It doesn't mean it won't go up or become a multi-bagger. But that will be based on a completely different thesis, something a lot of speculative.

[atbed]

Hey all:

 

NTP made a bit of a move and hit a 52 week high today, just over $11/share.  Plenty of shares traded also, about 7x normal volume. 

 

No news that I can find.

 

Anybody know anything?

 

This is all I see:

https://seekingalpha.com/article/4101433-millennial-income-portfolio-early-retirement

 

It doesn't pop up on SA's NTP page. Maybe they fix that at some point...

 

[greenwave]

Update on the Nam Tai  Shenzen ,China Commercial Real Estate project :

 

Nam Tai Property Inc. Announces Construction Progress and Availability of Construction Site Photos

 

PR Newswire•July 30, 2018

 

SHENZHEN, China, July 30, 2018 /PRNewswire/ -- Nam Tai Property Inc. ("We", "Nam Tai" or the "Company") (NYSE Symbol: NTP) announced today that construction site photos have been made available on the Company website under the heading "Inno Park" and will be updated at a regular interval as the construction progresses.

 

After the receipt of its construction permits, the construction of Nam Tai Inno Park has been progressing smoothly. The Company expects to adhere to its previously announced schedule of construction. Recently, the Company has received a number of inquiries from shareholders and potential investors for site visits. In the interest of fair disclosure, particularly for overseas investors that might not be able to conduct a site visit, the Company will make regularly updated photos of the construction site available on its website so investors may observe the construction progress.

 

 

Click on the links below for weekly updated photo of our construction progress.

  http://www.namtai.com/inno_park.html

 

 

 

http://www.namtai.com/img1.html  <  updated photo of our construction progress as of 7.27.2018

 

 

 

 

[elliott]

What competitive advantage does the company have in relation to the Inno Park project?

At this point (still working on this, though) the only advantage I see is that the company acquired the use rights of the land in 2007, so the land cost is lower than that of a developer that acquires the land use rights today (note: I prefer not to use the expression "to buy land" since there may be readers that think that land is actually being bought). We still need to consider the land appreciation tax, though, which is progressive. From 30% to 60% of the value gained.

The land itself has not been rezoned. It was designated for industrial use (M1) back in 2007, and according to that use is construction taking place.

Additionally, from what I have read in the 2018 annual report, an agreement had been signed with the relevant authorities of Shenzhen pursuant to which a certain progress had to be reached by 201807. Such level is expected by the company to be reached in late 2019 - the company reports that if that is the case, it will be subject to a fine equal to 15% of the land cost (further delays would increase the penalty). This will increase costs.

 

I also wonder, how useful are the valuations of Savills, JLL, etc? (again, related to Inno Park project)

These surveyors provided a valuation of the land after construction is completed (using data provided by NTP to value the buildings, etc), yet the company can only lease out units, so it will engage in regular and upfront leases (more below) that try to bypass the sale prohibition, at a cost since, as the company itself reports, this upfront leases will be at a discount to sale prices. In any case, while sale prices are correlated to rents, considering that there will be different types of units, of tenants, etc, to derive one from the other cannot be easy (rent from sale price, or sale price from rent).

The surveyors also valued the land itself, but we dont know how much of the valuation is due to comparables vs residual approach (which depends on many inputs provided by the company, eg construction costs).

 

By the way, the company reports that this "upfront leasing" is a relatively "new" type of leasing and that it may be regarded as unlawful by the relevant authorities. The way I see it. leasing out something for as long as you can (in this case, for as long as you hold the land use rights) in exchange for a single upfront payment equal to the sum of all rent amounts due in the lease period sounds very much like a sale. My concern is not whether the company will be able to do engage in this type of leasing or not, its actually the opposite. I am afraid they may be able to do it, but who is to say that they will not be fined later?

 

 

 

[greenwave]

Disclosure :  I have owned owned Nam Tai stock since 2013 .

 

The  new Nam Tai informational web-links were recently posted on another message board.

My assumption is that it was prepared for the English speaking investors by one or more of the major investors in Nam Tai.

 

--- https://www.namtaiproperty.com/  OVERVIEW

 

--- https://www.namtaiproperty.com/projects

 

--- https://www.namtaiproperty.com/team

 

--- https://www.namtaiproperty.com/press

 

--- https://www.namtaiproperty.com/testimonials  VALUATION

 

--- https://www.namtaiproperty.com/faq 

 

--- https://www.namtaiproperty.com/about

 

--- https://www.namtaiproperty.com/contact

 

--- https://www.namtaiproperty.com/newsletter

 

[elliott]

Thanks for the links, greenwave!

 

Its good to have additional sources of information. Still, while I appreciate the efforts of the people behind that website, I urge any visitor to exercise caution. The authors report about recent land auctions in Press and Valuation, but the relevancy to our case, ie NTP, may not always be so direct.

For example, one piece of news and how they use it:

http://finance.ifeng.com/c/7nlhHvJZBMh

BAO’AN GOVERNMENT PROPERTY AUCTION FINISHES IN 4 MINUTES

...earlier in June 2019, the government auctioned off several land parcels one of which is about a mile from Nam Tai’s Inno City project. That transaction was for ¥5.9 billion or $860 million US dollars. If you compare value per square foot, Inno City, just the dirt, is worth $1 billion USD or $26 per share.

 

Now, that land which sold in 4 minutes and for which a real estate developer paid RMB 5.9B, is for building residential real estate. Not an industrial park like Inno City. Thats a difference, for sure! To be clear, the authors are not telling us otherwise and I, for one, am grateful that they post that kind of news. But some investors may mis read the information, so do you own research!

 

Something else that website is not telling is that there are quite a few big projects being developed in Guangming, close to Inno Park. It is all part of one plan designed by the local authorities. Indeed, there are 4 science/high tech parks being developed in the area, apart from NTPs Inno Park. But its not only industrial parks, also a cultural and arts centre, roads... For those that have been to China, though, that level of construction activity might not be that surprising.

In any case, the important thing IMHO is to assess both the level of supply that NTP and the other current industrial park developers will bring to the market, and the future demand for that kind of space.

 

[greenwave]

Thanks for the links, greenwave!

 

Its good to have additional sources of information. Still, while I appreciate the efforts of the people behind that website, I urge any visitor to exercise caution. The authors report about recent land auctions in Press and Valuation, but the relevancy to our case, ie NTP, may not always be so direct.

For example, one piece of news and how they use it:

http://finance.ifeng.com/c/7nlhHvJZBMh

BAO’AN GOVERNMENT PROPERTY AUCTION FINISHES IN 4 MINUTES

...earlier in June 2019, the government auctioned off several land parcels one of which is about a mile from Nam Tai’s Inno City project. That transaction was for ¥5.9 billion or $860 million US dollars. If you compare value per square foot, Inno City, just the dirt, is worth $1 billion USD or $26 per share.

 

Now, that land which sold in 4 minutes and for which a real estate developer paid RMB 5.9B, is for building residential real estate. Not an industrial park like Inno City. Thats a difference, for sure! To be clear, the authors are not telling us otherwise and I, for one, am grateful that they post that kind of news. But some investors may mis read the information, so do you own research!

 

Something else that website is not telling is that there are quite a few big projects being developed in Guangming, close to Inno Park. It is all part of one plan designed by the local authorities. Indeed, there are 4 science/high tech parks being developed in the area, apart from NTPs Inno Park. But its not only industrial parks, also a cultural and arts centre, roads... For those that have been to China, though, that level of construction activity might not be that surprising.

In any case, the important thing IMHO is to assess both the level of supply that NTP and the other current industrial park developers will bring to the market, and the future demand for that kind of space.

----

elliott ,

I couldn't agree more with you about the importance of always doing as much due diligence as possible into Nam Tai or any other real estate development  before investing.

 

My best to you,

 

greenwave

 

 

 

[hillfronter83]

Activist investor push for board replacement. Anyone know anything about Iszo Capital? What is their track record?

 

https://finance.yahoo.com/news/iszo-capital-lp-releases-open-121300954.html

[hillfronter83]

Activist investor push for board replacement. Anyone know anything about Iszo Capital? What is their track record?

 

https://finance.yahoo.com/news/iszo-capital-lp-releases-open-121300954.html

 

Another activist investor got involved: https://finance.yahoo.com/news/railroad-ranch-capital-releases-letter-134000933.html

This could get really interesting.

[fareastwarriors]

Activist fund IsZo pushes for special meeting at Nam Tai to refresh board: letter

 

https://www.reuters.com/article/us-nam-tai-property-hedgefund/activist-fund-iszo-pushes-for-special-meeting-at-nam-tai-to-refresh-board-letter-idUSKCN24L1EE

[hillfronter83]

Activist fund IsZo pushes for special meeting at Nam Tai to refresh board: letter

 

https://www.reuters.com/article/us-nam-tai-property-hedgefund/activist-fund-iszo-pushes-for-special-meeting-at-nam-tai-to-refresh-board-letter-idUSKCN24L1EE

 

So it seems talk with Kaisa hasn't been going very well. The stock is up about 90% since their activism announcement. There are two other major shareholders: Peter Kellogg (cofounder of the NTP) and Kahn Brothers, who owns about 25% of the company. They'll probably decide if Iszo will succeed. BTW, I emailed Iszo but didn't hear back from them.

[elliott]

On October 5, 2020, the Company entered into a Securities Purchase Agreement (each, a “Purchase Agreement”) with each of Greater Sail Ltd., a wholly owned subsidiary of Kaisa Group Holdings Ltd. (“Greater Sail”) and West Ridge Investment Company Limited, an affiliate of a large-scale integrated financial group based in Hong Kong (“West Ridge”), pursuant to which the Company, in a private placement, issued and sold to Greater Sail and West Ridge 16,051,219 and 2,603,366 common shares of the Company, respectively, par value $0.01 per share (the “Shares”), at a price of  $ 9.15 per Share (the “Private Placement”). The Private Placement yielded net proceeds of approximately $170 million.

 

The Company expects the net proceeds of the Private Placement will be used for paying down debt that is at risk for cancellation or early repayment demands, and increase its financial flexibility.