This weblog is in response to a reader’s touch upon Sabana REIT being taken over by a considerable shareholder.
I used to be replying to the reader’s remark nevertheless it acquired fairly lengthy.
So, I’m publishing the reply as a weblog as a substitute and extra individuals can eavesdrop as I discuss to myself.
AK talks to himself:
Plainly Volare Group is not shopping for all the REIT.
Only a partial provide for 10% of the REIT at 46.5c a unit.
It’s at a quite massive low cost to Sabana REIT’s NAV however, given the a lot larger threat free price right this moment, it’s in all probability not too dangerous a value.
I keep in mind running a blog about what I assumed a good value may be for a purchaser to supply for Sabana REIT.
That was in relation to the low ball provide made by ESR REIT on the time.
I advised a value of 48c a unit.
46.5c is not too far off and again once I advised 48c a unit, rate of interest was method decrease too.
For anybody who’s , you can see my tackle the matter within the following weblog:
The truth that Volare Group goes to pay 46.5c per unit in right this moment’s excessive rate of interest atmosphere for Sabana REIT helps the argument that ESR was actually attempting get Sabana REIT for a tune again in 2020.
Disgrace on ESR.
Disgrace on all of the individuals who stated it was a great deal and that Sabana REIT’s minority shareholders ought to settle for the scheme.
Sure, that is what they referred to as it.
This provide by Volare Group is an affirmation of Sabana REIT’s attractiveness as an funding for revenue even in right this moment’s atmosphere.
Most of my funding in Sabana REIT, round 80%, was made at 35c a unit with the stability made up of a small legacy place and likewise round 15% added extra not too long ago.
So, if the REIT ought to be 100% taken over at a proposal value of 46.5c a unit, I suppose it might not be a nasty consequence for me.
To be fairly trustworthy, nonetheless, I would not be celebrating.
It could most certainly be a bitter candy second as it might remind me of Saizen REIT, Croesus Retail Belief, Accordia Golf Belief and Religare Well being Belief.
All of them had been fairly good investments for revenue with my entry costs however I used to be pressured to take the capital good points as they had been all delisted at one level or one other.
I’m nonetheless eager on maintaining Sabana REIT as an funding for revenue.
I do not need to must search for alternative investments for revenue.
After having spent an excessive amount of time in 2022 reallocating assets, I’m trying ahead to being lazier in 2023.
Largest investments up to date.