Yes, exactly.I dont know , probably are for people who dont want hassle of property management
It's obvious that the private market see that reits are undervalued by the stock markets and are moving to take them private. Already green reit and now hibernian reit have been bought out by private equity.
So it looks like the option to invest in irish reits won't be there for much longer as they all get privatised. The question is why were the stock markets not able to value them fully?
A big factor is the fear of Scum Fein/IRA coming into power and hammering the REITs.
Yes isn't that essentially the short comings of the stock markets. Warren buffet said that in the short term the markets are a voting machine but in the long run they are a weighing machine.Private Equity may take a longer view and realise that whatever SF do will eventually be reversed as the policies prove to be unworkable and full of nonsense - this could take a few years. After all, the Soviet Union lasted 70 years before collapsing
I made a small investment also,like a lot of people I began to dabble in shares during lockdown.Hope this isn't bordering on speculating about specific shares,but would an experienced investor cash out now at 1.62 in case the proposed buyout falls through? Or hang around for the proposed 1.64 in total when deal goes through.Not a lot of difference in my case due to number of shares held, so really just wondering what the big hitters do in such scenarios.I was very pleased to see Hibernia being bought out last Friday , I bought fairly heavily into it in February 2021
agree about REIT,s not tracking the on the ground property market , they do not , they are income vehicles , are they a better investment than direct property ?
I dont know , probably are for people who dont want hassle of property management
I made a small investment also,like a lot of people I began to dabble in shares during lockdown.Hope this isn't bordering on speculating about specific shares,but would an experienced investor cash out now at 1.62 in case the proposed buyout falls through? Or hang around for the proposed 1.64 in total when deal goes through.Not a lot of difference in my case due to number of shares held, so really just wondering what the big hitters do in such scenarios.
Isn’t private equity usually more short-term in its thinking?Private Equity may take a longer view and realise that whatever SF do will eventually be reversed as the policies prove to be unworkable and full of nonsense - this could take a few years. After all, the Soviet Union lasted 70 years before collapsing
So why did private equity not swoop on IRES two years ago when price was 40% lower ?REITs seem to me to be tailor made for a pension investment (as dividends won't be taxed, and they're a steady utility type of investment). Given the discount to NAV that many of them exhibit from time to time, private equity will swoop on them if they drop below value thresholds. And private equity property funds investing into Ireland still enjoy huge tax advantages over private investors and retail REIT shareholders. Hence you have a well funded Private Equity class of investor, who has tax advantages, bidding to buy REITs from retail investors who don't enjoy these same advantages and hence will value the REITs at lower multiples.
So why did private equity not swoop on IRES two years ago when price was 40% lower ?
I think ires is already partly private anyway ,well not actually private but not fully traded as an independent entity, I think it's partly owned by cap reit a large Canadian reit companySo why did private equity not swoop on IRES two years ago when price was 40% lower ?