Why Bj Corp at 34 Sen is A Bargain? Part 2 (By Calvin Tan Research)
Now we dig deeper into the very Core of Bj Corp’s Asset Value.
Let us study one example:
Bj Corp owns 13,737 Acres (leasehold) Lands in Bkt Tinggi Resort (just after Genting Highlands).
The lands were acquired in year 1997 (20 years ago) . The Book Value is Rm286,533,000
Now let’s calculate it’s cost per acre
So Rm286,533,000 divides by 13,737 acres = Rm20,858 per acre
Now let’s further subdivide it into per sq ft
So Rm20,858 divides by 43,560 = 47.8 sen per sq ft
AMAZING INDEED!! THE VALUE OF BJ CORP’S BKT TINGGI LANDS ARE ONLY VALUED AT 47.8 Sen or Less than 50 Sen Per Sq Ft?
Above is a picture of Colmar Tropical Resort in Bkt Tinggi
And do you think the Lands of Bukit Tinggi is worth less than 50 Sen Per Sq Ft?
These Lands Are Not Wild Jungle Lands in Ulu Ulu Places without proper access road.
These are lands beautifully landscaped to perfection!
I spoke to Mr Chan of Daiman Property in Johor when they offered to sell their Semi D Lands in Taman Johor Jaya for Rm25 psf in year 2012.
I told him to give a further discount from Rm25 psf.
Mr. Chan said that land scaping cost (paving the access road, leveling the land, installing drainage culverts, water pipes, electric cables & etc etc cost at least Rm20 per sq ft.
So Rm25.00 then was cheap. And in no time Daiman sold off all the Semi D lands in Taman Johor Jaya.
That was year 2012 cost before cement, steel, bricks & worker’s wages increased.
Now from experience it cost a lot more building hilly hill slope lands. Things in Cameron Highlands, Genting Highlands & Fraser Hills cost much more than normal due to the difficulty of transporting goods and material uphill. So is Bukit Tinggi.
In today’s context Tropical Colmar Resort & Bkt Tinggi Landscaping alone would have cost more than Rm30.00 per sq ft. Landscaping refers to levelling the hill, constructing roads, preparing drainage, laying of water piping & others. Excluding Building & Structures.
So 47.8 Sen Psf only show VERY DEEP HIDDEN VALUE OF BUKIT TINGGI RESORT.
AND BJ CORP IS LITERALLY SITTING ON AN UNBELIEVABLE GOLD MOUNTIAN CALLED BKT TINGGI
What if we just price Bkt Tinggi Resort based on its Landscaping value of Rm30 psf
So 13,737 x 43,560 x Rm30 =