Its bc the market doesn't like how aggressive an Industrial...

Its bc the market doesn't like how aggressive an Industrial property trust is priced. I.e. The IPO yield was 7.7% (6.85c FY17 forecast distribution & IPO price of 89c).

Many thought this was far too aggressive & hence why the actual book build was also poorly received.

There are also a number of significant risks to the current FY17 forecast specifically around the quality of the properties in the portfolio (& specifically the significant cost to re-let them if they were to be vacant)

Finally, the FUM targets are also ultra aggressive. They need to attract c. 700M in additional FUM within the FY to meet their IPO targets & hence their forecast distribution & ergo their implied yield.

All-in-all this IMO will drift to a more appropriate yield of c. 10-11% to better price the risks to the portfolio & the forecasts. This would see the SP being b/w 62.5 & 68.5c

Finally, the first distributions are in Feb 2017, so the time will act against this one as a lot can 'go wrong' between now & then.

There have been some really good articles written about this IPO in the financial press specifically expressing these & other risks which explain the poor uptake in the book build.

This is one to watch for me with it becoming a buy in the low-60's as the yield approaches 11% for my SMSF...