Make money from Croesus Retail Trust and no worries?

I said before that if an investment is still doing what we want it to do for us, there is no reason to sell unless we have found a another investment that can do a better job, bearing in mind to compare apples with apples.

Reader:
Hi AK, noticed you mentioned you would prefer not to accept any privatisation of Croesus. Just curious about the reason?

Supposing they pay a 20 percent premium, you'd be getting back effectively 3 years of dividends. Together with the large capital return (which would be more than 120 percent since your average price is much lower than current price), you could easily put that money on some other REIT, which itself would generate income moving forward.

So it seems that it's definitely good to take any deal that comes by. Or am I missing something?

AK:
It is like killing the goose that lays the golden eggs. 😉

Reader:
Haha true
Except with what you get back, you can buy another golden goose 😛
and have some more leftover because of the premium.

AK:
If you can find another golden goose. Not so easy. 😞


Well, sometimes, we don't have a choice and are forced to sell. Will just have to be philosophical about losing the goose then.

Related post:
History with Croesus Retail Trust.

History with Croesus Retail Trust and current thoughts.

When I found out that Croesus Retail Trust could be privatised, I had a feeling of deja vu.

It wasn't too long ago that something similar happened to Saizen REIT and, because of that, I lost a significant income generator.

Now, it seems that I may lose another significant income generator.




As I invest primarily for income, this creates a headache for me, especially when it is a relatively big investment in my portfolio. 

Mallage Saga, a CRT mall in Saga.

Some might remember that Croesus Retail Trust is one of my more significant investments as I shared this in a blog earlier this year.

In any case, the news got me nostalgic. Hence, this blog.





I first blogged about Croesus Retail Trust in July 2012 and, it was obvious, I was not too enthusiastic about it then.

See:
Croesus Retail Trust: IPO planned.


However, all investments are good at the right price and I became an investor in late 2013.

See:
Croesus Retail Trust: Long position.

I like to think that patience will be rewarded and I guess I was in this case.

Then, some readers were worried about Croesus Retail Trust and I wrote a piece titled:
Croesus Retail Trust: Motivations and risks.

When Mr. Market was feeling depressed, I bought more as I believed that an attractive investment just got more attractive. 

When Croesus Retail Trust offered rights units, I bought more because they were going to use the money for reasons which I liked.

See, for example:
22 for 100 rights issue (at 61c each)






Rights issues are not necessarily a bad thing and this is a topic I have blogged about many times in the past.

For example:
REITs and rights issues: Dilutive?

Over time, Croesus Retail Trust became a very significant investment that it is today for me.

I like what I see. 

So, I stay invested.





Oh, if you think this blog title sounds familiar, it should be because it is a play on this blog:
History with Sabana REIT and current thoughts.

Of course, regular readers would know that a big part of my investment in Croesus Retail Trust was funded by the proceeds from selling my investment in Sabana REIT years ago.

See:
Added more Croesus Retail Trust and reduced Sabana REIT.




I made pretty good money from my investment in Sabana REIT and I have made good money so far from investing in Croesus Retail Trust.

Even though I would prefer to continue receiving income from Croesus Retail Trust, if it should be privatised, then, I would probably enjoy (with misgivings) another round of capital gain.

Croesus Retail Asset Management Pte. Ltd. (the “Trustee-Manager”), as trustee-manager of Croesus Retail Trust (“CRT”), wishes to announce that it has been approached in connection with a potential transaction which may or may not lead to an acquisition of all the issued units in CRT (“Units”). 

Related post:
My investment portfolio.