Hi again guys,I've just had a chance to catch back up on the...

Hi again guys,

I've just had a chance to catch back up on the posts and wanted to share some information I gathered today. As part of my due diligence around participating in the capital raising I thought it might be helpful to actually contact some of the agents involved in leasing the vacant floors at Cremorne and also the Canberra property. I found the conversations really insightful and thought I would summarise them here:

Cremorne:

Overall the agent here was pretty bullish on the quality of the building itself (which he considered to be one of the best of it's kind in Victoria) but also pretty frank in discussing the issues so far.

One of the health care providers received a large amount of parks as part of their lease deal (apparently this one was done before 360's involvement in the property) and this was a mistake that has caused issues in getting the remaining space leased as it shrinks the potential pool of tenants interested.

The agent also described the vacant floors as long and skinny which is a bit of an unusual shape.

He considered the spec fit out to be a really good investment as most tenants who are currently looking at space that they fit themselves won't commence a lease for 6 to 12 months

I got the sense that a lease here might be pretty close to happening as he mentioned a few leads that he's pretty confident in. He mentioned he's hopeful of getting something locked in over the next couple of weeks with a finance group.

For what it's worth he also said 360 capital had been very proactive throughout the process and good to deal with

Canberra:

The agent here was also really knowledgeable to talk with although less bullish and I didn't get the sense anything was imminent.

Once again he said that the building itself is excellent in terms of quality (a "cracker building in a great location")

He agreed that Forrest is one of the tightest markets in the parliamentary precinct but said that needed to be considered in the context of a very inactive Canberra market.

Overall his firm were substantially down on interest in office space in the past 12 months (no surprises there given the struggles of the office sub sector in general)

A lot of groups are looking at moving and then finding that it doesn't stack up financially so staying put.

He also said that the amount of space available is actually too big for a lot of corporates in the Canberra market (2200 square metres) and told me for context that the total foot print of NAB bank in Canberra is 800 square metres so it will most likely need to be split up across multiple tenancies

Home HQ Trust: I'm hoping to have some more insight on the issues here tomorrow as I've reached out to an agent from one of the previously unsuccessful campaigns. I continue to think we're going to be stuck with this holding for the foreseeable future.

In terms of my own investment I think I'll commit to the capital raising. I normally try and be pretty close to fully invested in the market but had built up some cash in the last few months as I think valuations have become stretched overall. I wasn't planning to deploy that into TOT though and would much rather increase my exposure to the REIT further space via DXC but I guess the more quality names in my portfolio being too expensive to consider topping up on ease the pain of putting that money to work in TOT.

I'm going to do some more work on this tonight.