new reit with risk

just spent time diggin into it.
Hotshot stock NXT has offloaded the Land +Bldg for its Melb and Sydney data centres - called M1 , S1
It already sold B1 (yeah - bananas in pyjamas!) to private investor.
M1 cost $52m
S1 cost $58 just completed
total $110m which is all funded by equity($1, being a 61c installment with IPO and 39c May'13)
the next NExtDC centre P1 Perth $28.8m expected to be funded by debt

So AJD's sole tenant will be NXT, expcted 9% rentals, and cost of 0.72% of gross assets = $1m. I think too high to operate 3 buildings with one tenant - most probabaly getting sucked up by directors fees and legal etc to run the stapled listed structure

With the costs, the single tenant risk until NXT get revenue established, as well as current $1.12 equating to net 7.4% yield - all leads me to conclude others out there with little risk for similar value.