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  1. #11
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    Re the current offer for 20m new units. I wonder if we will have to jump through as many hoops to subscribe to these and then at the price which is only a couple of cents discount at this stage. My recent experience with the GMT issue has me hesitating, but then I have not received the paper work yet.
    Soolaimon

  2. #12
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    I would think that the same procedure as the GMT issue would apply - it seems to be necessary to comply with the restrictions on overseas ownership of land and property.

  3. #13
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    Quote Originally Posted by Beagle View Post
    Don't necessarily disagree with posters above but on the other side of the coin KPG are morphing their malls into a more comprehensive product offer. An excellent example of this is our closest mall in New Lynn Auckland where they have added a whole new extension wing of bars and restaurants along with the Reading Cinema complex and this addition has really transformed the whole mall into a diversified shopping and entertainment complex. Its frequently been extremely difficult to get a car park whereas before this transformation the place was looking a little sad and under patronised. On a side note, Lynnmall was N.Z.'s first shopping mall and I remember starting my career in 1980 just over the road at an accounting firm and I would wander over the road and do my shopping when it was nothing much more than an open strip of shops with a walkway down the middle.

    I'm pretty sure malls will keep morphing as they have always done in the past on as required basis to stay relevant.

    To answer the Op's question, the revaluation is the result of valuers using lower capex rates in their valuation model's consistent with interest rates and capitalisation rates at 60 year lows so yes the revaluation is fair in this ultra low interest rate environment. Amazing that you can borrow money fixed for 2 year's at only 3.99%. Never seen that before in my career.
    Property values (thus cap rates) and interest rates are the opposite ends of a see-saw. That is why the best time to buy real estate, particularly housing, is when interest rates are high.

  4. #14
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    Quote Originally Posted by fungus pudding View Post
    Property values (thus cap rates) and interest rates are the opposite ends of a see-saw. That is why the best time to buy real estate, particularly housing, is when interest rates are high.
    Good insight fungus. The question is will we consider today's interest rate high in 1, 2 or 5 years time?

  5. #15
    percy
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    Quote Originally Posted by fungus pudding View Post
    Tenants have always fought for lower rents. Major tenants like Farmers do know that if valuation rentals are not paid then new development stops. So rent reviews are often contested, but while there may be a bit of a variation between two valuers, it usually won't be much of a problem because rent levels are general ratcheted. New development is forever forging new rent levels.
    .................................................. .................................................. ..........
    Mistake
    Last edited by percy; 01-11-2019 at 04:47 PM.

  6. #16
    percy
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    Quote Originally Posted by fungus pudding View Post
    Property values (thus cap rates) and interest rates are the opposite ends of a see-saw. That is why the best time to buy real estate, particularly housing, is when interest rates are high.
    Excellent post.

  7. #17
    percy
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    Quote Originally Posted by fungus pudding View Post
    Property values (thus cap rates) and interest rates are the opposite ends of a see-saw. That is why the best time to buy real estate, particularly housing, is when interest rates are high.
    .................................................. ................................ duplicated.
    Last edited by percy; 01-11-2019 at 04:48 PM. Reason: duplicated

  8. #18
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    What's the group's opinion on this last paragraph of the offer .....

    Further details about the Retail Offer are included in the Offer Document, which can be viewed here. While participation in the Retail Offer is optional,if you choose not to acquire additional shares via the Retail Offer your shareholding will be diluted.On behalf of the Board, I would like to thank you for your continued support.
    A quote attributed to Margaret Thatcher goes along the lines of
    "The problem with socialism is that eventually you run out of other people's money."

  9. #19
    ShareTrader Legend Beagle's Avatar
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    Quote Originally Posted by Waiuta View Post
    What's the group's opinion on this last paragraph of the offer .....

    Further details about the Retail Offer are included in the Offer Document, which can be viewed here. While participation in the Retail Offer is optional,if you choose not to acquire additional shares via the Retail Offer your shareholding will be diluted.On behalf of the Board, I would like to thank you for your continued support.
    I hold some on behalf of my Mum and won't be participating in this capital raise. To me it makes no sense subscribing for new shares at $1.58 when the last recorded NTA is $1.43 per share.
    I can see why GMT and KPG are rushing to this new issuance when their shares are trading a such a premium to NTA, its a great deal for the company.
    Yes, strictly speaking your percentage of the company will be very slightly diluted but the value of your shares will increase because other people are subscribing for new shares at a material premium to NTA. What they're saying is technically correct but nevertheless slightly disingenuous.
    GMT issued shares at quite a substai8ntial premium to NTA because the industrial property sector is being perceived at present as very safe. This issue is not at quite such a premium but nevertheless is not a compelling offer by any means.
    Last edited by Beagle; 01-11-2019 at 07:30 PM.
    Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.
    Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine

  10. #20
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    Thank you Beagle I appreciate your comments.
    A quote attributed to Margaret Thatcher goes along the lines of
    "The problem with socialism is that eventually you run out of other people's money."

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