Commercial property syndicates

[winner69]

Another bit on syndication / funds from Chris Lee
https://www.chrislee.co.nz/taking-stock

[Aaron]

Probably behind the paywall

https://www.nzherald.co.nz/business/...NGT4JI4C4KF2M/

Oyster fund's business plan obviously did not have a 7.73% interest rate. I wonder what interest rates they were planning on? Or perhaps rents would rise sufficiently fast to justify the purchase price and cover the mortgage.

Makes you wonder about the yields that listed companies are planning on.

Maybe the impending depreciation denial is a factor.

No redemptions happening currently but you can sell on Syndex.

I imagine even with Syndex it might still be quite illiquid.

Can you register with syndex and peruse what is on offer?

I guess there would be all sorts of syndicated farms, orchards, vineyards and commercial property on offer.

If it is illiquid there might be bargains to be had.

Has anyone looked into this?

[kiwikeith]

1b+ Oyster Group fund suspends investor withdrawals, selling properties : r/newzealand (reddit.com)

[troyvdh]

Oh dear....what a surprise.
Isnt this so predictable ...
Higher rates of return promised ....higher risk.

[kiora]

Not commercial but

This wouldn't happen in NZ would it?
Yeah right?
Old apartments anyone?
https://finance.yahoo.com/news/poiso...151700886.html
"
The plans for Mediterranean Village include elevator repairs, concrete restoration, improvements to the roof, and even $700,000 for landscaping"

"The Altera Apartments in Stonefields, Auckland, was completed in 2015 by Fletchers, one of our largest residential building companies. But a new TV documentary screening on Prime on Wednesday, April 14 says these apartments, too, have leaky curtain walling and are not fire compliant"
"“It’s about badly built buildings,” Levie tells Stuff. “If a building is leaking, it’s probably not fire compliant, and it probably has structural issues.”"
.https://www.stuff.co.nz/life-style/h...-wider-problem

[troyvdh]

Boring old PFI ...

[kiwikeith]

Boring old PFI ...

With a pretty boring dividend yield.

[troyvdh]

Indeed kiwi.I have to admit Im very disappointed/somewhat bewildered with the SP performance of this company.
Yet I believe there have been no major departure of significant shareholders.
Like whats up...I have no idea.

[Aaron]

Indeed kiwi.I have to admit Im very disappointed/somewhat bewildered with the SP performance of this company.
Yet I believe there have been no major departure of significant shareholders.
Like whats up...I have no idea.

Are you talking about PFI? Just wondering what I am missing. Why would you be bewildered by the share price? From your post it sounds like you are surprised the SP has not gone up but at current prices it is trading at 24 time operating cashflow and for the financial year ended 31/12/2023 dividends were $42,680 and operating cashflow $47,049 so not a lot of room for dividends to grow. Even then the dividend yield is not even 3%.

It is a solid property company investing in industrial property which shouldn't be as affected by the internet and working and shopping from home but I would have thought the share price has a long way to drop before this becomes a good investment.

I suppose I would need to look at earnings growth over time, maybe it is a growth story but I wouldn't have thought a property company was a growth story. Interested to hear your views on why PFI is undervalued and the share price should be increasing instead of decreasing?

P.s. I understand PFI is not a syndicated property investment so maybe PFI is not property for industry on this thread. Always keen on a property investment but I wonder what metrics everyone uses to tell if it is over or under valued.

[troyvdh]

Thanks Aaron.Why I think PFI is undervalued.
I suppose I view PFI kinda like a residential property.
Land and construction prices have increased markedly.
I havent checked the NTA recently but surely it must have increased in recent times.

OK.Here is an example of my rationale.

ARV.It was trading at about a one dollar.NTA was two dollars.

Bugger me someone paid 1.70.

Its gone.

NTA is 2.70.

I prefer to invest for generational wealth.