Nigel Stevenson, CFA
Research analyst, value, special situations

Champion REIT: Good Value At A 50% Discount

Champion REIT (OTC:CMPNF) (2778.HK) is a Hong Kong-listed real estate investment trust, spun off from Great Eagle Holdings (OTCPK:GEAHF) in 2006. It is the second largest Hong Kong REIT with a market value of HK$20bn (US$2.6bn). Great Eagle has retained a controlling shareholding, currently around 58%. Whilst the stock trades in the US on the OTC market, it is very illiquid. It is currently trading at a discount to NAV of 56%. Does this represent a bargain? Or are there good reasons for such a high discount?

Background

Champion owns two assets: Citibank Plaza, located in Hong Kong's Central financial district, which comprises two office towers, as well as associated retail space; and Langham Place, a...

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