IPL - Investore Property

[Snow Leopard]

We cringe at the name but we may want to buy shares, and if we own Stride then we get shares anyway.


To get the PDS & more:

click the link >> http://www.business.govt.nz/disclose/

hit Search Offers

type Investore in the Issuer Name Box and hit Search

hit the link

hit the Documents tab

hit the Product Disclosure Statement.pdf link

Bingo

Best Wishes
Paper Tiger

[fungus pudding]

We cringe at the name but we may want to buy shares, and if we own Stride then we get shares anyway.


To get the PDS & more:

click the link >> http://www.business.govt.nz/disclose/

hit Search Offers

type Investore in the Issuer Name Box and hit Search

hit the link

hit the Documents tab

hit the Product Disclosure Statement.pdf link

Bingo

Best Wishes
Paper Tiger

Thanks PT. That works. Can't say I've got my head around this deal so far. A bit of reading to do, or maybe just sit back and hope the deal lifts divs and/or price. That sounds easier.

[Snow Leopard]

...To get the PDS & more:

...

There is .

Click this Link >> http://www.shareoffer.co.nz/Document...ore-PDS-NZ.pdf


But wait, There is more

There is this Site >> http://www.shareoffer.co.nz/investore


Best Wishes
Paper Tiger

[axe]

highlights for me.

• Investore's interest expense representsapproximately 29% of revenue in FY18. Managingdebt and interest rates are a key driver ofInvestore's profitability. ( will do well as long as interest rates stay low )

Exposure to significant tenant: General Distributors Limited ("GDL") is Investore's largest tenant constitutingapproximately 84% of Investore's Contract Rental as at 30 April 2016. If GDL's performance materiallydecreases or if GDL fails to meet its lease obligations, this could affect Investore. (PS axe thinks that if 84% of revenue if coming from one customer they have your n*ts in a very tight grip when it comes to negotiating rent increases.)

[fungus pudding]

highlights for me.

• Investore's interest expense representsapproximately 29% of revenue in FY18. Managingdebt and interest rates are a key driver ofInvestore's profitability. ( will do well as long as interest rates stay low )

Exposure to significant tenant: General Distributors Limited ("GDL") is Investore's largest tenant constitutingapproximately 84% of Investore's Contract Rental as at 30 April 2016. If GDL's performance materiallydecreases or if GDL fails to meet its lease obligations, this could affect Investore. (PS axe thinks that if 84% of revenue if coming from one customer they have your n*ts in a very tight grip when it comes to negotiating rent increases.)

I still don't understand the point of the stapled shares. Stride shareholders will be issued around 35% of shares in investore, and stride will hold 19.9%. Remainder (approx. 45%) will be offered in IPO. Could anyone a little less thick than me explain why stride doesn't just offer 45% in IPO?

[Baa_Baa]

I still don't understand the point of the stapled shares. Stride shareholders will be issued around 35% of shares in investore, and stride will hold 19.9%. Remainder (approx. 45%) will be offered in IPO. Could anyone a little less thick than me explain why stride doesn't just offer 45% in IPO?

It's something to do with tax advantages. Maybe the tax accountants here can shed some light on this complicated divestiture.

[fungus pudding]

It's something to do with tax advantages. Maybe the tax accountants here can shed some light on this complicated divestiture.

I hope so. Assuming these properties are worth purchasing, why not just purchase outright under stride's existing structure? There'd be ways of financing the purchase less complicated than this, and surely just buying some more buildings would not impact on stride's PIE status.

[winner69]

I hope so. Assuming these properties are worth purchasing, why not just purchase outright under stride's existing structure? There'd be ways of financing the purchase less complicated than this, and surely just buying some more buildings would not impact on stride's PIE status.

Need to separate property management and property owning businesses to main full PIE status - if split not approved your returns diminish

The property management part was just getting too big

[Snow Leopard]

The spin-out of Investore from Stride may not only be a necessary condition of the proposed new purchase, but is also probably desirable as the large format retail has a significantly? different risk to reward ratio from the rest of the Stride portfolio.
I am not saying better, I am not saying worse, just that it is different.

Whether it is a good idea to be pumping your money into new shares depends upon, among other considerations, how you see property valuations going forward.

So you will have two separate and independent shares (one vanilla and one-stapled) and you can take your choice of what mix of holding you want to pursue.


The split of Stride into a property owning company and a property management company is highly desirable for tax purposes and maximizing shareholder returns.

The directors and senior staff will probably do OK as well.

Best Wishes
Paper Tiger

[fungus pudding]

The spin-out of Investore from Stride may not only be a necessary condition of the proposed new purchase, but is also probably desirable as the large format retail has a significantly? different risk to reward ratio from the rest of the Stride portfolio.
I am not saying better, I am not saying worse, just that it is different.

Whether it is a good idea to be pumping your money into new shares depends upon, among other considerations, how you see property valuations going forward.

So you will have two separate and independent shares (one vanilla and one-stapled) and you can take your choice of what mix of holding you want to pursue.


The split of Stride into a property owning company and a property management company is highly desirable for tax purposes and maximizing shareholder returns.

The directors and senior staff will probably do OK as well.

Best Wishes
Paper Tiger

But they're not independent. It will not be possible to hold only str, although you could hold only investore shares.