A Tuesday, 9 May, High Court ruling, which cancelled the transfer of Stand 654 Pomona to WestProp Holdings where the company intended to establish a “city within a city” called Pomona City, could be catastrophic for the company as that single asset represented more than half of its property holdings.
An evaluation report in WestProp’s prospectus showed that that stand alone was valued at US$105 million out of a total portfolio of US$201.8 million, overshadowing 12 other properties that the company owned.
Not only was the stand the most valuable, it was also the biggest.
The next most valuable property was Stand 8113 Warren Park valued at US$24.2 million, followed by Stand 19608 Seke Road put at US$15.5 million.
WestProp started trading on Monday despite its dismal failure to raise funds in its initial public offer which raised only US$3.3 million instead of US$40 million.
WestProp chairman Michael Louis and chief executive Kenneth Sharpe have downplayed the poor showing at the IPO but out of the US$3.3 million, less than US$300 000 was from the public. The other US$3 million was from the underwriter Alpha Holdings, which according to the prospectus, is also a shareholder in the company.
WestProp shares are going for US$10 a share but none have been sold since trading started.