has sgp telegraphed their intentions on fkp?, page-4

Hi Major....you said..."My only concern is the age of FKP's retirement assets. FKP seems to promote that as a positive but surely when the vast majority of your assets are in the 10-20 yo bracket, thats surely got to mean extensive renovations and/or replacement in the near future?"

A couple of thoughts for you.

This is a MASSIVE asset and where the "cream" is when you have a village that operates on the DMF model.

Remember the price that was paid for a unit years ago is nowhere near what it is today...and so, depending upon how the initial contract was structured, FKP make a motza by refurbing and selling them again at a massive price increase.

You definitely want mature, well kept and well located villages in your portfolio and I believe FKP has the best portfolio in Australia in this regard.

So too does SGP!

One other thing...when LLC made their highly ocnditional offer of $5 a share for FKP...the board considered at the time that the offer didn't properly refelct the premuium that shoud be paid of the development pipeline that exists in the retirement portfolio.

This has got to sell pretty close to the $1bn mark, if not over.

Now...here's the stupidity of the whole thing.

The true value of just the retirement portfolio is worth more than the entire company on todays SP!

That's why this thing has legs...wher else can you buy $1.20 or thereabouts in value for just 58 cents?

Had anyone have mentioned this to Ned Kelly so many years ago he wouldn't have robbed them, he would have shot them for being stupid!

Cheers Major