ALE now has around $100m to reinvest to avoid diluting its earnings outlook. My guess is they might have been able to do a deal with the new Endeavour management to develop some of their large Melbourne 20,000+sqm sites to maybe include a Woolworths supermarket / Metro or even create small neighborhood shopping centre which are currently seen as a growth area in the retailing market.
I believe there are considerable benefits to both Endeavour and Woolworths through cross trading synergies as well as more efficiently utilising the large existing car parking areas these properties provide. If this is part of management's strategy, it would certainly provide LEP with an exceptional income and asset growth profile.
DYOR
LEP Price at posting:
$4.53 Sentiment: Buy Disclosure: Held
