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  1. #31
    ShareTrader Legend Beagle's Avatar
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    Who is this partner company to which you refer Percy ?
    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

  2. #32
    percy
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    TRA.................Turners Automotive Group Ltd.
    The property ARG brought from Turners, is Turners Wiri Truck and Machinery site,160 Roscommon Road,which ARG paid $8.6 mil.Interesting to note TRA paid $4mil for it in 2015.It is pleasing seeing TRA "book" the development margin.Great for ARG having a solid NZ listed company on a long lease.
    As ARG's CEO,Peter Mence said,"We are pleased to have commenced what we envisage to be a mutually benefical long-term relationship with an organisation that has a significant real estate footprint accross NZ".
    TRA's interim at the end of the month should be "interesting".
    TRA's future large [more than possible] developments in ChCh and Auckland will most probably be on sold to ARG.
    Couta1 may be right with TRA's "target price".......lol.
    Last edited by percy; 14-11-2018 at 08:06 AM.

  3. #33
    ShareTrader Legend Beagle's Avatar
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    ARG may have paid too much for that site as land values in South Auckland have not increased that much. A 5% net yield isn't great. Definitely something I will be bringing up at the next ARG shareholder investor day. https://www.aucklandcouncil.govt.nz/...an=12345402517
    I have a client with some industrial land near to that location and we feel the real value is ~ 25% above Council value. On that basis ARG may have overpaid but its a funny market and some properties are selling for below 5% gross yields with much weaker leases than what ARG have signed up TRA too.
    What this suggests to me, (and as alluded too in ARG's recent investor presentation) is that industrial cap rates have definitely declined. Further evidence is provided by the substantial premium ARG achieved above 31 March 2018 book values for their regional properties sold.

    I think we could see a cracker result inclusive of revaluation gains for ARG next week. NTA could show a material increase above its current level of $1.12.
    This remains my preferred property stock as its trading at a material discount to 30 Sept 2018 net asset backing.
    Last edited by Beagle; 14-11-2018 at 11:14 AM.
    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

  4. #34
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    Quote Originally Posted by Beagle View Post
    ARG have obviously paid too much for that site as land values in South Auckland have not increased that much. A 5% net yield is pathetic. Definitely something I will be bringing up at the next ARG shareholder investor day.
    Jeeze....they should have checked with you before they bought it Beagle ! What were they thinking?

  5. #35
    ShareTrader Legend Beagle's Avatar
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    Quote Originally Posted by RTM View Post
    Jeeze....they should have checked with you before they bought it Beagle ! What were they thinking?
    Yes I toned that post down a bit after recalling that some deals are going through at under a 5% yield. Shortage of commercial sites in South Auckland ? Maybe they're hoping TRA will develop it but they've probably got their own idea's like shifting a shipping container onto it lol
    Definitly a subject to bring up at the next ARG investor day.
    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

  6. #36
    percy
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    Quote Originally Posted by RTM View Post
    Jeeze....they should have checked with you before they bought it Beagle ! What were they thinking?
    My thoughts too....
    What do they say about property values.?
    The value is governed by the quality of the tenant.
    ARG know the value of Turners, and "benefit ofl long-term relationships."

  7. #37
    percy
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    Quote Originally Posted by Beagle View Post
    Yes I toned that post down a bit after recalling that some deals are going through at under a 5% yield. Shortage of commercial sites in South Auckland ? Maybe they're hoping TRA will develop it but they've probably got their own idea's like shifting a shipping container onto it lol
    Definitly a subject to bring up at the next ARG investor day.
    Google Turners Wiri,and you will note Turners have developed the site.[to suit Turners requirements].

  8. #38
    ShareTrader Legend Beagle's Avatar
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    Quote Originally Posted by percy View Post
    TRA.................Turners Automotive Group Ltd.
    The property ARG brought from Turners, is Turners Wiri Truck and Machinery site,160 Roscommon Road,which ARG paid $8.6 mil.Interesting to note TRA paid $4mil for it in 2015.It is pleasing seeing TRA "book" the development margin.Great for ARG having a solid NZ listed company on a long lease.
    As ARG's CEO,Peter Mence said,"We are pleased to have commenced what we envisage to be a mutually benefical long-term relationship with an organisation that has a significant real estate footprint accross NZ".
    TRA's interim at the end of the month should be "interesting".
    TRA's future large [more than possible] developments in ChCh and Auckland will most probably be on sold to ARG.
    Couta1 may be right with TRA's "target price".......lol.
    Incorrect. They paid $4.8m for it in 2016. https://www.nbr.co.nz/article/turner...d-48m-b-192486

    Some silly deals being done presently on silly yields...ARG's latest is one of them...but their two sales at prices substantially over book value suggest others are playing silly buggers with their buying too ! All this augers well for ARG's upcoming half year result.
    Last edited by Beagle; 14-11-2018 at 11:27 AM.
    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

  9. #39
    percy
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    So what.
    $4mil in three years is a very healthy gain.

  10. #40
    ShareTrader Legend Beagle's Avatar
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    Try and be accurate please. There's a 20% difference between $4.0m and $4.8m. Maybe being a bean counter I am a little fixated with the detail because I have to be in my job but there's no way $4.8m rounds down to $4m. I agree TRA have done well probably mostly because they got it very cheap in 2016. (Distressed sale at that time perhaps ?) So yes, kudos to TRA who have done well making a $3.8m gain less transaction costs.
    Last edited by Beagle; 14-11-2018 at 11:33 AM.
    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

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