Overseas investors today directed their ire at Unitech over the difference between the net asset value (NAV) of its Alternative Investment Market (AIM)-listed Unitech Corporate Parks Plc fund and what the traded price of the units reflected.
They questioned the valuation undertaken by official valuer Knight Frank, a television channel reported.
Company sources, however, maintained that investors were merely seeking information to understand the variance between the NAV of the fund, which was about 140 pence, and what its unit’s trading price of 11.5 pence reflected.
Unitech Corporate Parks (UCP) was incorporated in the Isle of Man in September 2006 with an initial business strategy of making investments in Indian commercial real estate, including special economic zones, related to information technology services. However, UCP’s investment strategy may expand to cover hospitality, retail and other commercial and mixed-use sectors in India.
UCP’s management is in discussions with investors to see how the valuations can be brought closer to the NAV. It’s also considering the buyback option to help investors.
In March 2007, the value of UCP was 553 pounds. However, Knight Frank valuated UCP at 781 million pounds in September 2008. Investors are now wondering how the valuation can go up at a time when there is a slump in the property market following the global economic slowdown.
