Definitely good buying at this level even if the possibility of a Grexit is scaring everyone. Lack of a pop in unit price definitely sets the scene for a buyback.
Extract from the AFR today:
"ING Real Estate Community Living Group has flagged the potential for a share buyback with the proceeds of the sale of the US Seniors New York portfolio.
The assets sold for about $US173.3 million – $US10 million above their December book value.
The six Long Island properties sold to a consortium of Harrison Street Real Estate Capital LLC and the portfolio’s current manager, The Engel Burman Group. Settlement of the deal, which was foreshadowed in The Australian Financial Review, is due in the final quarter of the year. It is conditional on US regularoty and property level debt approvals.
ILF will receive $A49.9 million in proceeds from the sale (or 11.3¢ per unit). Chief executive Simon Owen said these would be used to pursue growth opportunities including “investment in the Fund’s development pipeline and bolt-on acquisitions, as well as to consider a number of capital management initiatives including a possible buy-back”.
The fund’s unit holders will vote next week on whether to internalise its management. The vehicle will be rebranded Ingenia Communities.
ILF Price at posting:
20.5¢ Sentiment: LT Buy Disclosure: Held
