Good to see more asset sales above book value - the more of...

Good to see more asset sales above book value - the more of these we see the better. Pretty sneaky of FKP though - a few thoughts.

Firstly, on the recent results call they mentioned that Mulpha wasn't involved in the asset sale process. Of course they didn't rule out PBD whose major shareholder is Mulpha.

Also, the sale of 50% of Milton is clever. Not only do they reduce debt by $28m on settlement but the whole development now goes off balance sheet apart from a one line entry for an investment in a JV. This means the $108m in further development costs they had lined up with the banks will stay off the balance sheet of FKP and won't impact on their debt metrics.

Another interesting point is that in the result call the CEO stated that none of the three key residential estates were one of the four assets subject to DD. So presumably, these assets sales are outside this process??? Will need clarification on that one.

Finally, not sure how PBD intends to pay for all of this. They certainly don't have the balance sheet to do it. I assume a capital raising in on the cards for PBD shareholders.

If it all goes ahead though another win for FKP shareholders as they realise the non-retirement assets above book value. Considering share price is still only $1.60 against $3.53 NTA there is still plenty of upside.