Cambridge Industrial Trust updated us on their plans to sell Lam Soon Building which in their books is valued at $90 million. The indicative price will net CIT about 70% of $330 million since CIT owns 70% of the building.
Overall, it will net Cambridge a total of $141 million in profit which translates to an increase of $0.118 in both NAV (to $0.739) and secured NAV ($0.195). This is a great news as it reduces its price-to-book ratio to 0.697 which is more favourable than AIMSAMP Industrial REIT. This deal looks very promising. If it gets through, its price will move up quickly. The challenge that the management will face after this deal is what to do with this amount of money then.
I am already vested with 50,000 shares which I will hold on and benefit from it.
No comments:
Post a Comment