I remember back in 2005 when ALZ was sold down to around $1.40...

I remember back in 2005 when ALZ was sold down to around $1.40 (yielding over 11% and with some franking credits). They were a riskier business than VPG is now IMO.

I think a similar opportunity is here now. Valad did not NEED the money IMO, however saw an opportunity to develop a relationship with upside potential (ie. sell more funds into the US market that they did not have a presence in).

The yield on the note price is comparible to what would have been offered had shares been issued - however the REIT does not have the volatility risk. That's why I believe they structured it this way in this market.

I think (and hope) that the selling today is a combination of:

* UBS still selling;
* Punters speculating on a takeover dumping as their short-term upside is gone;
* Some fear promoting more selling.

MJS