Quote:
Originally Posted by PBlonde
Of all the times to sell, now is not the time to do it. They should've capitalized on the ludicrously high land prices of 4/5 years ago. They're better off sitting on it for another 5 years to wait and see if land prices recover.
Either way, I wonder if a sale of the land to anyone other than Beedie would mean Beedie can keep the lease in full force and effect and force the new owner to wait until the lease expires while they keep paying low, low rents. If so, at an NOI of $1.65M that land is only worth $41M at a cap rate of 4%.
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Imo.
There's such a large supply of density now that property values are not going to increase all that much for the foreseeable future. With a cap rate of only 4% (considering the value of the land), the VSB could make far more money selling that land, and investing that money somewhere else.
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