2 reasons why this is going to soar...and soon

Come on Mr/s Market...wake up!

FKP is now a short price favourite to experience upwards price movement...and soon!

Two reasons:

(1) Energex Building As Good As SOLD!

The announcement by Cromwell last Friday has been overlooked as to the significance to FKP.

Effectively the ann stated that the Cromwell River Park Trust (which was set up exclusively to acquire the Energex Building from FKP and which has now closed to investors which means presumably that they also have their 55% loan in place) - are now looking to conclude the final bits of the agreement prior to June 30.

Significance of this to FKP? They have now secured a sale and hence progressive funding for this project...as good as a debt reduction of $175m!

(2) What do you think Stockland are going to do with that $1.98bn now sloshing around in their corporate treasury? (See ann of 19/6)

I've said it for a long time...SGP wants the FKP retirement assets..and their ann of 17/6 backs this up yet again.

Read this direct quote from the SGP ann:

“We are taking this opportunity to continue the reorganisation and simplification of our business by splitting Residential in two. In particular, this will ensure a greater focus on the Retirement Living business which remains one of our key growth platforms.”

A number of internal promotions result from these changes.
Stockland’s Executive General Manager Strategy and Corporate Development, David Pitman, will take on the role of CEO Retirement Living. He will continue to head up Group Strategy.

David has previous operational experience and was keen to return to a line management role. He has played a key role in developing the growth strategy for Retirement Living and is well placed to add significant value to this business.

End of quote...

Join the dots.

It's on.

And my suggestion on price is between $600m and $1.0bn.

But, SGP will wait till after the full year results in FKP when they will also announce a further write off of retirement assets of around 5% due to the discount rate moving from 12% to possibly 13%