new $30 million sale, page-9

Now O'im all discombobbulated redmoon; LOL!

OK, let's see - they bought the property for $11.4m; they valued it at $32.9m; and sold it for $30m.

So one way to look at it - it's been a 3 bagger (or nearly a ~300% profit) for Centro. Now, as we know a profit is a profit is a profit, and from a traders/investors point of view you would always take your profits off the table.

If you see declining property values coming up, then again take your profits off the table. And if the property has been developed to its highest & best use and its revenue is considered to be at the top of the tree, then where do you go from there? You may as well sell it and employ your resources elsewhere, like developing another property's income for example.

An 8.9% yield (or cap rate) is pretty good in today's market based on capitalisation methods and comparative valuation methods.

I do understand your point insofar as they have lost income by selling it, however if they can do better things with the capital and the profit (realised value) like avoiding debt covenants, pleasing the CNP/CER Bank overlords (& making themselves more attractive to possible foreign suitors {see CNP}), paying down debt, stabilising, and strengthening the group, then these factors can far outweigh the negative aspects of losing cashflow and thereby putting them in a net better position - otherwise they wouldn't have sold it imo.

In closing, one management rule (especially in mergers & acquisitions) is to always have an 'exit strategy'.

Cheers, Pie (: