We are always on the look-up for assets that have multiple catalysts for a positive re-rating.
Sometimes patience can be the most underrated of all virtues.
We discovered this listed fund in early 2013. It only had one asset, a premium office property in Newcastle, NSW (90 minutes north of Sydney). The location, the list of tenants & the lease schedule was the most impressive in Newcastle.
What made us interested in this asset, was that it traded at a steep discount to its reported net asset value (NAV). Also, depending on the price we could purchase the fund at, the cash yield was over 8% per annum. At times, we were able to purchase this asset at up to a 15% discount to NAV.