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Quote "Regarding your first question, as disclosed in our IPO prospectus, Saizen does not generally maintain earthquake insurance on its properties"
I don't believe in whatever those guys at Saizen Reit fund management are saying now, they were probably cutting the corner to maximize the yield in the first place. These guys are ex-bankers , the Commercial mortgage-backed securities (CMBS) experts but those days are gone and i doubt if they have any valuable expertise in properties management business or none at all. They started it off with financing all these properties using CMBS, then listed the REIT in Nov/2007 and exited nicely when the CMBS market was already boiling for some time. The first dividend was around 10%, too good but it does not last, soon they raise capital and later selling off properties (most of them at lower valuation than the book value) to pay debt. At some points i was looking at what perceived to be "very attractive valuation" but after figuring out the whole thing i thought its better to just ignore it.
BTW, there are some material about Saizen REIT on the next insight for your reference.
Basically, the article gives you an impression that there is a good management who are working hard and smart to pull out shareholders stuck in mud after the Tsunami, but hey who are the ones who brought them in there in the first place.
http://www.nextinsight.net/index.php/sto...a-with-ceo
I don't believe in whatever those guys at Saizen Reit fund management are saying now, they were probably cutting the corner to maximize the yield in the first place. These guys are ex-bankers , the Commercial mortgage-backed securities (CMBS) experts but those days are gone and i doubt if they have any valuable expertise in properties management business or none at all. They started it off with financing all these properties using CMBS, then listed the REIT in Nov/2007 and exited nicely when the CMBS market was already boiling for some time. The first dividend was around 10%, too good but it does not last, soon they raise capital and later selling off properties (most of them at lower valuation than the book value) to pay debt. At some points i was looking at what perceived to be "very attractive valuation" but after figuring out the whole thing i thought its better to just ignore it.
BTW, there are some material about Saizen REIT on the next insight for your reference.
Basically, the article gives you an impression that there is a good management who are working hard and smart to pull out shareholders stuck in mud after the Tsunami, but hey who are the ones who brought them in there in the first place.
http://www.nextinsight.net/index.php/sto...a-with-ceo