Growth Point Properties Australia Strategic Viewpoint, page-2

But here now is the catch.

The above relates to the book value inside the company.

The shares are not trading anywhere near the book value.

CAP rates are based on the property value, and the property value is captured in the 'N' in NTA.

GOZ NTA is around $4, share price is now $2.

GOZ cap rate of 5.6% is based off the book value of $4, but one can acquire that book value of $4 for just $2 on the market.

And that's where things are now interesting.

It's a game of chicken, who is right? For a long term investor, does it make sense to start acquiring those $4 of NTA for $2 on market.

Is there sufficient margin of safety, nobody believes the CAP rate of 5.6% is sustainable going forward, no body believes that the NTA of $4 is sustainable going forward.

But Mr Market, because he is now very very fearful, if offering you to obtain those Net Assets at just $2.

Deal or no deal?
That is the question shareholders should be focussing on.

I will add some other relevant points to this topic thread over time.

But for me I am starting my attack run, for me, and this is only my opinion, and with taking a minimum 5 year view point, for me I am buying.