Stockland and its FKP Property Stake

Submitted by Share Trading on 28 October, 2010 - 09:42

Australian property manager and diversified property group, Stockland (ASX:SGP) is weighing up its options on its 14.9 percent stake on FKP Property Group (ASX:FKP). However, FKP's largest investor is Mulpha Australia. One rumour is that the company may consider "an asset-for-equity swap" for FKP's retirement assets.

Goldman Sachs Group Inc. real estate analyst Peter Zuk had written in a note dated September 21 that FKP’s current price offers a buying opportunity and that FKP’s retirement assets would be valued at about A$1.15 a share if the price Stockland paid for Aevum was applied to them.

Stockland has sold down its 13.1 percent stake in GPT Group (ASX:GPT) yesterday which saw the company exit with a $208 million loss on a failed $870 million investment made on GPT in November 2008.

Stockland last month won agreement for its$320 million takeover bid for Aevum, now owns 83 percent of the Sydney- based retirement village operator

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