Benchmark to go on block at £270m

WEST End property developer Benchmark signalled it was ready to be sold in a deal worth up to £ 270m.

Malaysia-based billionaire Tan Sri Quek Leng Chan, Benchmark's chairman and controller of a major stake in the UK company, is bound to play a key role in any sale.

Today he said the board was concerned at the size of the discount the shares were trading at relative to the value of the company's assets.

'Accordingly, the board, in the interest of all shareholders, has decided to review all options available to the company to address the discount,' Quek said. That review, due to last around three months, will include exploring a sale.

Benchmark's largest shareholders, with 35% stakes each, are UK insurer Friends Provident and GuocoLand, a Singapore-listed company ultimately controlled by the Quek family. Benchmark chief executive Nigel Kempner said: 'Depending on what avenue we take, I am sure the board will want a fairness opinion on the company's value by an independent adviser.'

The comments coincided with the release of Benchmark's full-year results. Its net asset value per share - what its properties are worth - fell to 278.4p. This would value the business at around £270m.

Its shares added 6 1/2p today to 184p, making the company worth £179m.

Benchmark's triple net asset value - its break-up price after paying interest and debt - is put at 278p per share, or £240m. Property companies tend to be sold on this valuation.

Apartments builder Galliford Try said it had rejected a £113 million takeover approach from property investor Rok, claiming that the offer, at 51p a share, 'significantly undervalues' the group.