Also, a lot of it is an elaborate game of ‘pass the parcel’, of buying an asset, instituting a new depreciation Schedule, then flicking it down the line. Maybe making a few improvements, some cosmetic changes. And attracting a new tenant so they can ‘boast’ good WALE (weighted average lease expiry) numbers.
But look at the 29 Sept notice, where ENN ..
…acquired Riverside Plaza, a Coles supermarket anchored shopping centre, located in Queanbeyan, NSW, for $60.0 million, below its replacement cost
. Why so cheap? The centre had just lost Target as anchor tenant, and so they will …
… identify opportunities to unlock value through repurposing the real estate to deliver strong returns for our capital partners. … “Riverside Plaza has significant value-add potential given its town centre location and the opportunity to reposition a former Target tenancy into essential service providers such as medical and health.
Yeah, maybe.
… And, periodic valuations! Do it once a year, but it is a bit of prestidigitation, a notional and usually optimistic number, until a transaction. by which time investors are just happy to get their (or at least some of) money back.
