# Primaris PMZ



## herrM (Jan 1, 2012)

So what are people doing with their PMZ? Anyone think they will come back with i higher offer? thinking of taking some profit off the table and let the other half ride it up or down. Up about 50% not including dividends


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## gibor365 (Apr 1, 2011)

I don't understand something Kingsett Capital makes offer at $26, why price cointinue to go up , now $26.54? Maybe because of the dividends coming from now until possible buy out? or investors anticipating higher offer?
I have a very small position....bought 2 years ago at $21 something like 150 shares.... doesn't know what to do with it....
Is Kingsett Capital listed on TSX or if deal comes through we'll get cash?


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## phrenk (Mar 14, 2011)

gibor said:


> I don't understand something Kingsett Capital makes offer at $26, why price cointinue to go up , now $26.54? Maybe because of the dividends coming from now until possible buy out? or investors anticipating higher offer?
> I have a very small position....bought 2 years ago at $21 something like 150 shares.... doesn't know what to do with it....
> Is Kingsett Capital listed on TSX or if deal comes through we'll get cash?


The price is going up because most of the equity analysts believe that the price is too low, and expect another 1$-2.50$ per share increase before shareholders accept the offer. What is mind boggling, is that the Kingsett Consortium is acquiring shopping centers at an implied cap rate of nearly 5.40%-5.60%, which is fairly low for shopping centers (Scotia Plaza, a class A office tower was bought at a near 5% cap rate).


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## Mall Guy (Sep 14, 2011)

I believe their plan is to break up the sum of the parts to create value. As well, the money behind KingSett is mostly - if not all, non-taxable pension funds. Jon Love is no stranger to a number of these assets, having spun them out of Oxford a few years back. But agree, the deal is starting to look pretty skinny. PMZ has interesting assets, but some will face increasing challenges in the coming years - smaller markets under demographic pressure and they just purchased two malls from CF in NB - not the best in class to say the least, but they do fit their profile.


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