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nztx
17-09-2021, 10:05 PM
NZX Ticker not yet available

An interesting float out of Stride (SPG) of an Office Space Portfolio (10 Properties)

Office Fund Demerger & IPO - as described on SPG NZX filed Documents

Companies Office - Offer Section with Docs

https://app.companiesoffice.govt.nz/disclose/fmc-register/viewInstance/view.html?id=0b027646737e9b07db1cea4c5a9ebe0c68b8e a50043ac0f3&_timestamp=7432665776389800

Docs on NZX - SPG Listing:

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/SPG/379014/354562.pdf

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/SPG/378973/354550.pdf


Share distribution to SPG Holders (1 for 4 held)


Then Institutions / Book Build - Broker Allocations - No Public Pool

Indicative Price looks around Indicative $1.20 - $1.30 range

Managed Portfolio

PIE Structured

Returns look a little on light side compared with other established similar listings
without digging to much - as a gut feeling

Any thoughts ?
Snoopy
17-09-2021, 10:10 PM
Returns look a little on light side compared with other established similar listings
without digging to much - as a gut feeling

Any thoughts ?


The Fabric float is a stitch up? ;-) Sorry couldn't resist.....

SNOOPY
nztx
17-09-2021, 10:21 PM
The Fabric float is a stitch up? ;-) Sorry couldn't resist.....

SNOOPY


Hahaha .. now I didn't say anything of the sort .. did I ? ;)
Soolaimon
20-09-2021, 10:59 AM
Are Stride just unloading less profitable office buildings here ??
Sideshow Bob
20-09-2021, 12:05 PM
Are Stride just unloading less profitable office buildings here ??

Or buildings they struggle to re-lease, as companies look at the whole WFH thing longer term.
Benny1
20-09-2021, 06:34 PM
Or buildings they struggle to re-lease, as companies look at the whole WFH thing longer term.
No not really...it's just what they do...get a portfolio of properties together put them in a separate entity and float them on the market...
Much the same as IPL...
They keep a cornerstone shareholding and management of it through SIML..
They have another product called Industre they are developing at the moment with listing in the future...
Beagle
20-09-2021, 06:41 PM
One thing is they are giving people a clear choice here. Do you want to own shares in a company with office buildings as the only asset type owned ? (Not for me). Price appears in line with NTA and cash yield about 4%, which as a PIE so for many people with a 33% tax rate that's 6% gross yield.
fungus pudding
20-09-2021, 08:17 PM
One thing is they are giving people a clear choice here. Do you want to own shares in a company with office buildings as the only asset type owned ? (Not for me). Price appears in line with NTA and cash yield about 4%, which as a PIE so for many people with a 33% tax rate that's 6% gross yield.

Better than that with top rate now 39%
Beagle
20-09-2021, 08:40 PM
Better than that with top rate now 39%

I would argue that too much is made of the 39% top rate. Most people earning that kind of money form trusts or companies so their investment income is taxed at a lower rate.
Benny1
20-09-2021, 09:57 PM
I bought a little under 2.5 k of SPG shares not too long ago as a small foray into Stride, so will end up with just under 500 shares in fabric...which is abit of an annoyance really...
Am more interested in their Industre product in the future.
fungus pudding
21-09-2021, 08:49 AM
I would argue that too much is made of the 39% top rate. Most people earning that kind of money form trusts or companies so their investment income is taxed at a lower rate.

That surprises me. Where did you get that information?
Benny1
21-09-2021, 09:03 AM
https://www.nzx.com/announcements/379466
IPO and demerger turned off..
Seems a strange turn off events?
Could they not raise enough institutional funds to make this successful?
MarineSalvage
21-09-2021, 11:24 AM
https://www.nzx.com/announcements/379466
IPO and demerger turned off..
Seems a strange turn off events?
Could they not raise enough institutional funds to make this successful?

Knew it was in trouble when they sent out an SOS to Sharesies retail investors so quickly
whatsup
22-09-2021, 10:28 AM
I bought a little under 2.5 k of SPG shares not too long ago as a small foray into Stride, so will end up with just under 500 shares in fabric...which is abit of an annoyance really...
Am more interested in their Industre product in the future.

Benny, not any more hive off canned .
Beagle
22-09-2021, 12:42 PM
That surprises me. Where did you get that information?

Decades of professional experience as an accountant. Most wealthy people already had trusts and / or companies for investment purposes long before the 39% top personal tax was instigated.

https://www.nzherald.co.nz/business/stride-property-pulls-out-of-ipo-931m-fabric-property-listing-axed-evergrande-cited-in-move/PFEH5D6XBSHDWGWWYC22FHO6B4/ I can't help wondering how many millions Stride burned up in experts fees in trying to set up this failed spin-off strategy ? Despite what they say to try and save face I think this is unlikely to see the light of day again any year soon.
fungus pudding
22-09-2021, 03:19 PM
Decades of professional experience as an accountant. Most wealthy people already had trusts and / or companies for investment purposes long before the 39% top personal tax was instigated.


What level of income do you call wealthy? There are plenty of 39% taxpayers who do not have trusts or companies. I'm surprised you claim 'most' have.
Panda-NZ-
22-09-2021, 03:54 PM
180k per year is wealthy certainly in global terms, and 39 is only payable on income above that.

The impact of GST on people on that income will be much lower.
fungus pudding
22-09-2021, 04:06 PM
180k per year is wealthy certainly in global terms, and 39 is only payable on income above that.


I assume your addressing my post. $180k income is not wealthy in 2021. I do know that 39% kicks in at 180k.
Beagle
22-09-2021, 04:06 PM
What level of income do you call wealthy? There are plenty of 39% taxpayers who do not have trusts or companies. I'm surprised you claim 'most' have.

I don't know any but then again the people I deal with are in business so many have company and trust entities already for other reasons.
FYI here's KPMG's view https://home.kpmg/nz/en/home/insights/2020/12/personal-tax-rate-legislation-introduced.html
Excerpt "Only 2% of taxpayers are expected to be earning more than $180,000"
I remain of the view that the majority of people who are making over $180,000 will already have a family trust or a company or both or several other entities. 40 years experience...what would I know ;)
Waltzing
22-09-2021, 04:16 PM
" family trust or a company or both or several other entities"

the wealthy in the early 90's already had their Trusts and Companies and you only need to have a copy of "Advanced Trusts" research paper from the accounting society public in 95 to see the base work that was being "practised."

it was La Norme.

Certainly widely used for every farming and blood stock set of accounts publie.

A great read and never leave home for meeting with your barristers without it.
Panda-NZ-
22-09-2021, 04:20 PM
Nonethless there is a reason why people like fungus get hysterical over minor issues like this.

Because often people do pay it.
fungus pudding
22-09-2021, 04:23 PM
I don't know any but then again the people I deal with are in business so many have company and trust entities already for other reasons.
FYI here's KPMG's view https://home.kpmg/nz/en/home/insights/2020/12/personal-tax-rate-legislation-introduced.html
Excerpt "Only 2% of taxpayers are expected to be earning more than $180,000"
I remain of the view that the majority of people who are making over $180,000 will already have a family trust or a company or both or several other entities. 40 years experience...what would I know ;)

Fair enough. I know a good few who earn in excess of 180k, who certainly don't have any company structures - although I can't say I know much about any family trusts they may have.