Property Shares

[Arthur]

Thanks for your thoughts Beagle. Wise words, but a little harsh I feel as most of the properties have been recently added. Offer costs have sucked cash and hopefully will slow down now. The average age of the portfolio is maybe two years. Overall the older buildings have increased in valuation and rent. Alderman Drive for example the bought for 7.4 in 2016 and it is now valued at 10.3. Farmers in Whangarei is up 27% in a couple of years and the rent is up a similar amount. They have had a couple of misses as well. Two years in Kelston Mall has been value destructive at this stage. Will their plan work? If they lose Countdown (there are several in the area) things will get messy. Vickery Street only has a year or so on the lease. I am also very wary of their short term funding and leverage. If the property market does go tits up the listed sector has a long way to fall, my estimates are that this fund is actually slightly safer and offers a higher yield. Liquidity will be an issue though, with listed you can get out, it is just that you could lose 60% along the way.

[King1212]

No ..they won't lose countdown...it is like mini mall for locals. It is an income investment....provide steady distribution quarterly...... better than term deposit and one should prepares to invest in at least10 years. Liquidity is an issue..takes 30days to sell your shares however it is not like listed bon ...one day could drop 10-50 %..up n down like a yo yo....they said...once these acquisition completed....they will concrete on adding values on exiting properties...

[King1212]

On recent update...kelston mall childcare center will complete early Nov 2019 and Vickery street..Alto packing is agreed to renew the lease to another 6 years...for me..it is better to get in this fund as my initial plan is to buy a rental. but rental is a headache now...low yield... maintenance.. rates .. interest...after the rent received and minus expenses...need to top up at least $100-150 a week.

This one work well for me...no hussles...net distribution allow me pay mortgage interest rate at 3.6% for 2 years...

[Kelvin]

Anyone investing in the Goodman Property Trust retail offer? I’m wondering why there’s so many KYC requirements - investors have to provide certified copies of ID and proof of address. I don’t recall any other share offers requiring such documentation.

[King1212]

Anti money laundering acts....

[tim23]

Anyone investing in the Goodman Property Trust retail offer? I’m wondering why there’s so many KYC requirements - investors have to provide certified copies of ID and proof of address. I don’t recall any other share offers requiring such documentation.

Yes I am but I think its because of their trust status.

[GTM 3442]

Anti money laundering acts....

For existing shareholders? That just sounds nuts.

[Ggcc]

For existing shareholders? That just sounds nuts.

Get used to it. I have been back to banks numerous times for a trust where I have given them Information I had already given to them before. Not only that but loan applications we had for the trust were incorrectly processed by the bank three times in a row. They needed to so much information, as to where all my money came from and what was my source of income, am I owning anything overseas? We just need to become a cashless society and filling our information would become so much easier.

[fungus pudding]

For existing shareholders? That just sounds nuts.

I received a request the other day from an Augusta managed property syndicate I have been in for more than 10 years. I was asked to provide a bank statement or deposit slip or similar with my name showing. I pointed out that I had happily receiving monthly distributions for years, and they certainly would have heard from me if I hadn't. But not good enough. They said this was a requirement --- blah- blah - blah. Not being in the mood to drag it out I meekly did as they asked, but it was pure nonsense.
Interestingly, I have checked with two friend who hold a slice of the same syndicate, but neither has had such a request. Guess I'm just lucky.

[Beagle]

Anyone investing in the Goodman Property Trust retail offer? I’m wondering why there’s so many KYC requirements - investors have to provide certified copies of ID and proof of address. I don’t recall any other share offers requiring such documentation.

I am a trustee for my Mum's holding and am not investing. I note at balance date their last recorded net tangible asset backing is just $1.57.
For professional reasons I simply cannot recommend further investment at such a premium to NTA. I think very high quality industrial property is presently priced almost as though its in "an asset bubble" Even allowing for some further compression in cap rates since balance date I think its highly likely their current NTA as at 30 Sept is slightly south of $1.70. As for the documentation requirements, that sounds seriously over the top.