Yep agreed - I don't get it.
I view Cromwell as a similar company (part property owner/part management company)
And the premium for their funds management business is significantly greater than APN's.
What would APN get for the Sale of the mgmt rights for IDR or the APN REIT fund? I would love to know.
Generation was $58M (though admittedly a more compelling business) but not that different in scale to IDR.
I think IDR alone would have to be close to $10 - $15M. (given that it generates fees of 0.55% pa - so approx $3M pa of ongoing revenue).
I anticipate a modest FUM increase for the FY17 full year result. they are about to list the convenience fund (announced yesterday). Perhaps $2.5Bn of Assets under management for the group at year end.
APD Price at posting:
39.0¢ Sentiment: Buy Disclosure: Held
