facebookWho's going to ipo for Elite Commercial REIT? Why or why not? - Seedly

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          Anonymous

          30 Jan 2020

          โˆ™

          REITs

          Who's going to ipo for Elite Commercial REIT? Why or why not?

          What are the pros and cons?

          3

              Discussion (3)

              What are your thoughts?

              Difficult to judge...

              could be good, could be bad

              on the plus side: government tenant

              risk: Brexit associated things?

              (I imagine that after Brexit the U.S., particularly the current president, will be supporting the UK by way of favorable treaties to diminish Brexit fallout ...)

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                  Billy Ko

                  Billy Ko

                  30 Jan 2020

                  Level 11ยทFinancial Analyst at REPE Firm

                  Seedly did generate a rather thorough analysis of the Elite Commercial REIT IPO here

                  I am rather tempted to buy in given how it's leased to the government and the leases only expire in 2028 and the yield of 7.1% is rather generous and given the small pool of stock allotted for this IPO exercise, I foresee demand to be high.

                  However, what I don't like about this IPO is the high price, usually REIT IPOs are priced approx $0.80 - $1, whereas this is at $1.21. Also, pound-denominated dividends / trading adds on to my resistance when deciding if I want to apply for this IPO. Too much uncertainty. Also given how the Wuhan virus is shaking market sentiments, launching an IPO at this time may not be well sought after.

                  Since the closing date is 4th Feb, I'll probably hold up till 3rd Feb before making a decision

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                      Ernest Yeam Wee Leong

                      Ernest Yeam Wee Leong

                      30 Jan 2020

                      Level 9ยทContent Creator at www.youtube.com/c/JustBeingErnest

                      Personally I will not go for the ipo

                      3 reasons

                      High concentration risk in terms of tenants and loc...

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