Ciggars...It is interesting going back over all the talk about...

Ciggars...
It is interesting going back over all the talk about property trusts and consolidation that happened 3 years ago.

Here is another snippet from Dec 30 '04.

"The rush for consolidation was sparked by the lack of available property. More than 85 per cent of investment grade properties, ranging from shopping centres, industrial sites and office towers, are owned by trusts.

This means that, when a trust wants to expand its asset base to get more rental income, the managers are usually forced to buy out a competitor.

UBS' property team says the LPT sector offers a return of about 7 per cent for 2004-05 with 3 to 3.5 per cent earnings growth, suggesting that a 10 per cent 12-month return should be achievable"

From what they are saying the only way to grow a property trust then would be to takeover another trust.