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When would I invest in ESR-REIT again?

Friday, June 8, 2018

Reader says...
This is my first email to you although been following your blog for about 3 years.

You are an inspiration to me cause although you are 1 year younger than me but you have already achieve financial freedom long ago.

Understand that you have been blogging about not comfortable with ESR and VIva REIT but you also mention before an investment also depends on the price.

So I would like to find out from you at what level will you consider investing in ESR REIT.

Vanishing in less than 15 years.

AK says...
Absolutely no interest.

The whole deal is a godsend or a lifeline for VIVA (which is a ticking time bomb) but rubbish for ESR-REIT.

Yes, I think ESR-REIT got the shorter end of the stick and the shareholders paid for this and will continue to pay for it.

A big chunk of VIVA's portfolio have land leases which will expire within the next 15 to 20 years (see related post #2 at the end of this blog).

Another big chunk of their assets would see a drop in income as they convert from master leases to multi tenanted buildings.

Income support for UE Bizhub East is set to expire later this year.

ESR-REIT will be taking over this horror of a baby.

It would haunt them (mostly the common shareholders of ESR-REIT) later.

Of course, having said this, if there should be a big crash in price, maybe, then, I might take a look. ;p

Related posts:
1. Merger of ESR-REIT and VIVA.
2. VIVA more attractive with 9% yield?


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