Ann: CLW 2023 Half Year Results Presentation, page-33

i cannot say much about other funds coz I only own clw as it is diversified enough and long wale… imo, long wale is the most important factor in commercials…. Some of their assets are irreplaceable which makes clw especially attractive, for example, these pubs are in super prime position with ample
land for further development should things change, you will not terminate the lease as a tenant unless things have gone really bad because to find another prime location is extremely difficult and cost of setting up a premise will cost you millions.. makes no financial sense to move

another example is the metcash and coles logistic centres, it will cost tens of millions of dollars to set one up and will always be in demand, why would the tenant move ?

I don’t like retail or social infrastructure assets as much because retail is linked to consumer spending and usually discretionary…. Where as child cares does have long lease and favourable terms, it is 100% linked to government policies … if one day ( unlikely but possible), the government changes the policy and makes childcare cost extremely high for parents or does not subsidise childcare centres as much then 50% of childcare centres will go bust… it is already an extremely competitive industry, our local child care centre is giving 1 month free childcare for new enrolments to attract new customers …. I don’t want to invest in something that solely relies on government policies as we know it will change