Q: Hello 5i Team
Finally Melcor Developments (MRD) has offered to take Melcor REIT (MR-UN) private at $4.95 with a closing date of late Q4 2024.
I note there is a one month "go shop" for MR-UN to possibly find a better deal, however with MRD owing ~55 %; MRD being the manager of the REITs properties; and the year long Strategic Review Process - is it even a possibility that MR-UN could find another buyer?
With MR-UN trading ~$4.80 should I sell my holdings and move onto another REIT? With only a 3 % difference I think there are other opportunities in the REIT space to replace MR-UN.
What would be 5i top names in the REIT space to replace MR-UN (can be a different sub-sector from MR-UN's operations).
Thanks
Finally Melcor Developments (MRD) has offered to take Melcor REIT (MR-UN) private at $4.95 with a closing date of late Q4 2024.
I note there is a one month "go shop" for MR-UN to possibly find a better deal, however with MRD owing ~55 %; MRD being the manager of the REITs properties; and the year long Strategic Review Process - is it even a possibility that MR-UN could find another buyer?
With MR-UN trading ~$4.80 should I sell my holdings and move onto another REIT? With only a 3 % difference I think there are other opportunities in the REIT space to replace MR-UN.
What would be 5i top names in the REIT space to replace MR-UN (can be a different sub-sector from MR-UN's operations).
Thanks
5i Research Answer:
We have comments posted today on the takeover. With 3% still to go to closing, we would be fine using the units as a source of cash for other ideas. For alternatives we would suggest: CAR.UN, DIR.UN, GRT.UN, BEI.UN and IIP.UN