No - they paid more than rateable value. They paid market vslue
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Nobody said they paid more than market value. They paid more than rate-able value! And lets face it - while the rate-able value of standard quarter of an acre sections in town (where there are plenty of comparable properties around and regularly sold) is normally reasonable close correlated to the market value - the market for university campuses is quite less liquid. Which means QV has little comparable data to determine the GV and nobody is interested anyway to get the rateable values for such sections up.
I am pretty sure that Ryman paid the market value - willing seller, willing buyer ;).
https://www.afr.com/real-estate/apar...0180410-h0yk36
RYM building lots of little multi level apartments in Melbourne, Hmmmm
I do stand corrected and I agree with you that it was more than rateable value. It just baffles me how high these properties are going for and how much Ryman need to do try and make a profit out of it....... I am sure they have done the SUMs, but the bigger they get one hopes their purse strings don’t get looser (wasting). At the end of the day a brilliant company with a great track record!!
A stock so boring we don't even notice an all-time high. I might give my mate a call tonight who told me I was stupid for buying RYM in 2016.
SUM things just don't make sense do they ! Like RYM consistently growing at one third to half the rate of SUM over the years but trading at a 50% PE premium.
Bean counters know eventually the numbers MUST do the talking and silly relativity theories will be exposed for the old wives tales they surely are.
Me, I reckon big city prices in Eastern Australia have reached peak affordability just like Auckland has and the chances of further gains over and above inflation in the medium term are slim to none.
Makes SUM people wonder if a little company building a fair bit in provincial N.Z. is the better bet...
Morningstar upgraded their FV estimate from $11.30 to $13.60 yesterday based mainly off increased optimism about the Australian (Melbourne) expansion.