Online from: 1998
Subject Area: Built Environment
Options: To add Favourites and Table of Contents Alerts please take a Emerald profile
|Title:||Sources of net present value gains in the acquisitions of corporate real estate|
|Author(s):||Ting Kien Hwa, (Department of Estate Management, Faculty of Architecture, Planning and Surveying, Universiti Teknologi MARA, Shah Alam, Malaysia)|
|Citation:||Ting Kien Hwa, (2008) "Sources of net present value gains in the acquisitions of corporate real estate", Journal of Corporate Real Estate, Vol. 10 Iss: 2, pp.121 - 129|
|Keywords:||Corporate strategy, Net present value, Property management, Real estate|
|Article type:||Conceptual paper|
|DOI:||10.1108/14630010810905624 (Permanent URL)|
|Publisher:||Emerald Group Publishing Limited|
Purpose – Acquisitions of properties are carried out by corporate firms for development, investment and operational uses. Acquisitions of corporate real estate announced by listed non-property companies are found to have positive stock price reactions. This paper seeks to identify the reasons why acquisitions of corporate real estate are a positive net present value (NPV) investment to the acquiring firms.
Design/methodology/approach – This paper draws theoretical explanations from real estate and finance literature to identify the reasons for the acquisitions to be positive NPV investments to non-property listed companies.
Findings – The sources of gains in property acquisitions are worth, marriage value and business synergy. These explanations provide the reasons why the announcement of property acquisitions by listed companies could lead to positive wealth gains in the capital market.
Originality/value – This paper offers the explanations behind the positive stock price reactions upon the announcements of corporate real estate acquisitions.
Existing customers: login
to access this document
To purchase this item please login or register.
Complete and print this form to request this document from your librarian