Yes, I see your pitch at a spin-off or merger, Major...but not sure that I agree.
I think the days of the spin-off and float are gone.
FKP and Mac Bank are still licking their wounds over RVG.
SGP is an out and out developer..that's what they do.
I'm sure they can see the groundswell of demand that is growing day by day in this niche industry we call "retirement".
The acquisition of retirement villages with a good development pipeline tick a number of boxes for developers
(1) Usually the value of the land content per dewelling for retirement units is less than residential (2) The holding costs are therefore less (3) There is a captive and hugely growing market who aren't totally tied into the bankers for finance approval (4) The costs of land + building per metre must surely be less than a standard residential block (5) There is the advantage of continuous income via DMF and just about every developer would love to be able to even out revenue and profits.
No, I still favour the view that SGP want this "plum" all for themselves and like a lion pacing the game park fence...they're depserately trying to find a way in (but on their terms).
This game of cat and mouse might continue for a long time!
FKP Price at posting:
57.8¢ Sentiment: Hold Disclosure: Held
