Big Week, page-49

I am intrigued by some of the media reporting. They appear to be implying that a low ball offer is coming and that the company is powerless to do anything but accept it.
Not so and the directors would look like rank idiots to recommend any offer less than $2.35 which was the SP when they set the review process in motion against a then NTA of $3.92. Today it is at $3.83 after a write back against the value of the retirement assets to reflect no price gain this year.
Then there is Mulpha to consider. They have been on the register for 12 or more years and as best as I can ascertain, their holding has been gained at an average cost in the order of $2.40. They won’t want an exit for a few measly cents after so much pain. 
All the companies said to be lining up for a Aveo have four things in common. They have deep pockets, they are deep value investors, they are thematic long term investors riding a massive demographic trend and they like whole assets of size. They are looking to recoup their investent way further beyond the current downward trend in residential property which they simply see as a temporary cash provisioning exercise until cycles turn. The big picture still remains...how could you recreate a 90+ retirement village which is Aveo for less than the present NTA of $3.83? Because certainly, the imminent demand dictates that this and a few more Aveo’s need to be built. But Aveo has a big plus. The average age of a new resident to a retirement village is 78...The average age of the Aveo resident is 83...so they are 5 years closer to the generation of the cash once residents move on.