# TransGlobe Apartments (TGA.UN)



## HaroldCrump (Jun 10, 2009)

...is being privatized by its majority owners at a premium of nearly 19%.
Some of you might recall this is the same "slumlord" owner that was profiled and bashed by CBC Marketplace about a couple of months ago.

For anyone that bought in one year or more ago, this is probably at least a 50% return (including dividends of nearly 8%).
Even for those that bought in the wake of the bashing by CBC, this is still a good 25% return.

Cheers all :encouragement:


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## Eder (Feb 16, 2011)

Killiam is also a slumlord and has similar returns over the last year or so,and seems to be getting a bounce from this news.


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## andrewf (Mar 1, 2010)

They just IPO'd, and are now going private again? Weird.


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## Beaver101 (Nov 14, 2011)

So which other REITS come to mind as slumlords? Wish to avoid such stocks as with tobacco, liquors, etc.


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## slacker (Mar 8, 2010)

I lived in a TransGlobe building for 3 years, and I haven't had any issues with them. Sure it's not luxury living, but it's not meant to be.


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## andrewf (Mar 1, 2010)

It's an open question whether the slumlord classification was fair. They claimed at the time that the issued raised in the CBC report were arising from the management of a different entity (also called Transglobe) before the IPO, and that the new management was working to address these issues. Who knows what to believe.


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## HaroldCrump (Jun 10, 2009)

^ that part is factually correct (for some of the properties).

But, the properties were never of the quality held by some of the larger apartment REITs.
Most of the properties were definetely sub-prime.

The big run up in the stock price in the last year was not due to any superior execution by management (relative to peers) or the quality of the properties.
Shareholders of the company did (or should) know this.

Anyhow, it's all water under the bridge now - the deal is almost certain to be approved by the shareholders.

I am not complaining about a 50%+ return either ;o)


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## PMREdmonton (Apr 6, 2009)

Darn, I just invested in this one and was expecting a steady dividend stream.

Oh well, I only invested a month ago so the per annum gains are impressive.


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## PMREdmonton (Apr 6, 2009)

I decided to free up my money and invest elsewhere - sold at 14.28 just above the current offer. It seems like the market is very tight right now so I doubted a counter bid was on the way.

I'll have to look into REITs again to pick a replacement. Maybe I'll go to H&R or Artis.


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## HaroldCrump (Jun 10, 2009)

It won't be easy to replace TGA.
All REITs are fully/over priced now.
TGA was perhaps the only moderately priced (or rather, less over priced) than the rest because of a lack of track record, quality of properties, and recent controversy.


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