There's no doubt that BB knows how to make a $. However this is certainly not s LOV or ADH. I don't normally look at REIT's either, however here are a few notes I took the other day from an article in the Australian.
- Aventus is likely to face heavy scrutiny over its external management fees. Prospective investors may take issue with the comparatively expensive management fee of 0.7 per cent of gross assets. That compares to 0.5 per cent for most externally managed trusts.
- Blundy is also hoping to list Aventus at close to a 10 per cent premium to the properties’ net tangible asset value, a move that may irk some investors as it effectively wipes 10c off the unit price.
- One of the properties accounts for a tenth of the total value and is jointly owned by the company and Mr Blundy.
- Formed from 14 homemaker centres and five property funds.
- Underlying unitholders in the five funds are not exiting.
- The raising is mainly for new acquisitions (but also to pay down some debt).
So there are some pro's and con's there. I think the subject of the investment is a good one, however I would have to assume a stag would be extremely unlikely. Still could be an excellent investment over the long term though. Just my opinion...
