See #38 Percy. I did pick it up and yes a $3.8m gain in just over 2 years less transaction costs suggests TRA bought extremely well at the time. Its also suggest that the current cap rates on industrial property have hit a new low point which is supportive of my contention we will see a cracking interim result for ARG next week.
More to the point with this thread is the whopping 25% premium ARG got on their El Prado drive property in Palmerston North, such a big premium above independent registered valuation as at 31 March 2018. https://www.nzx.com/announcements/326751
Also worthy of a mention is yet another very high caliber appointment to ARG's board announced today http://nzx-prod-s7fsd7f98s.s3-websit...816/290417.pdf I must say their leadership team and board really impress with their depth of experience.
If they paid such a price for the 160 Roscommon road acquisition there's probably a good reason for that but it can't hurt to ask them at the next investor day.
Last edited by Beagle; 14-11-2018 at 01:13 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
Will ARG be impacted by NZ Post House still being largely unoccupied since the earthquakes? Note that Kiwibank had moved out of that building. Not sure if losses will be covered by ARGs insurance cover?
....And from Winner. “Understand floors Kiwibank occupied covered in asbestos and when / if they return it wont be to next year
Just street talk
Hopefully ARG covered”
Was this resolved ? Could it still impact ARG ?
Anyone know ? Considering buying some.
In regards to Wiri - widely accepted market return on land is 5%. Rent of $430,000, pa ($27/sqm) - broadly reflective of industrial yard rents.
15 year lease with fixed rental growth. Strong tenant. Looks good to me.
Also establishes that relationship whereby the site could be developed down the track for Turners.
discl - long time holder of ARG.
The site has already been developed by Turners to suit their requirements.
A very prominent corner site,ideal for Turners Trucks and Equipment sales.
Having established a trading history there, Turners know what rent they are prepared to pay,otherwise they would have kept it.
Details details...133 Roscommon road and 160...just 20% difference, who cares
Last edited by Beagle; 14-11-2018 at 04:00 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
Love it.
Caught out.
The Trucks must be at 160 not 133.
160 is the better site.
Thanks Fred and Beagle.
Good price for 133.
Wonder what 160 would be worth.?
Love it.
Caught out.
The Trucks must be at 160 not 133.
160 is the better site.
Thanks Fred and Beagle.
Good price for 133. Wonder what 160 would be worth.?
Going off the difference in the government values as recorded by Council (133 Roscommon road $6.1m and 160 $5.65m) its well under your 20% margin of error so no difference lol.
Anyway...getting back to more serious business. I think their NTA to be reported next week as at 30 Sept 2018 will be at least $1.15, (you read it from me first) and trading cum a 1.56 cps PIE (tax exempt) dividend next month at $1.10 this is pretty safe value buying in a volatile world so I topped up this afternoon.
Interestingly the gain on the property sales announced yesterday on their own add nearly 1 cps to the NTA taking it to just over $1.13. Add in commentary from the company in their most recent presentation in late October that industrial yields have fallen and factor in the extent of this as indicated by recent sales and provided there is no major exogenous shock to the market $1.10 cum divvy looks a bit too cheap to me.
Last edited by Beagle; 14-11-2018 at 05:27 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
Love it.
Caught out.
The Trucks must be at 160 not 133.
160 is the better site.
Thanks Fred and Beagle.
Good price for 133.
Wonder what 160 would be worth.?
160 much better isn't it - 133 elongated shape not the best, but good income for 15 years.
Many thanks to both of you for the many great comments I have read over the years from you both.
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Originally Posted by JeremyALD
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