IPL - Investore Property

[Aaron]

Valuations taking a $143m hit or 12% as portfolio revalued

I’m no expert in such matters but an average cap rate of 5.6% still seems a little low.

http://nzx-prod-s7fsd7f98s.s3-websit...855/391288.pdf

I am no expert either, but what do you reckon is a reasonable cap rate? 8%. I would have thought buying property at 5% hardly keeps up with eventual replacement or refurbishment but then I suffer from long term thinking.

Pretty solid tenant and solid leases in good locations?

Maybe taking into account interest rates falling in 2023/24.

NTA is pretty bogus for these property companies.

Of more interest do you know what banks require when lending on commercial property. What would be the LVR and debt service requirements. What other requirements should we be aware of?

What about non-property companies. Bank requirements might become important if inflation stays strong.

I remember Bruce Sheppard doing this years ago and identified Provenco/Cadmus as an absolute dog based on bank lending requirements. It went bust not long after.