Why VIVA Industrial Trust not in AK's shopping list?

AK gets asked about VIVA Industrial Trust from time to time and why AK never blog about the REIT? Alamak. It happened again today. 

I decided to share this exchange I had with a reader and without saying too much, I hope it is clear enough:

Hi, AK

I have been your reader since 2013 when my trekking friends recommended you to me. You have been talking to yourself about REITs and i faithfully followed it. Thanks to your generous sharing,  I have benefited too. 

I have 87 lots during IPO and am thinking of switching them to other REITS.I searched for Viva Industrial Trust (T8B) in your blog, but i could not get any information about it at all.  If you are free, don't mind sharing some thought about Viva Industrial Trust (T8B). Or  Viva Industrial Trust (T8B) never in your shopping list at all.

Thank you very much for your time and please keep talking to yourself.

Thank you and wish you have a nice week ahead!!

Regards,

A

Hi A,

I looked at Viva before and I was going to publish a blog post on it in 2014 but decided not to. In essence, I wasn't interested in the REIT because:

1. I was not sure that UE Bizhub's valuation was realistic.

2. I didn't like that its Chai Chee property had 17 years left to its lease. Now, 15 years left.

3. I was wary of the massive financial engineering to boost dividend yield which would otherwise have been 25% lower.

I just didn't feel good about the REIT. I still don't.

Best wishes,AK


Other examples of financial engineering:
1. K-REIT: 17 for 20 rights issue.

2. OUE C-REIT.

A blog post on leasehold properties:
OUE H-Trust: Considerations and comparisons.