Trading on 5-year anniversary properties

From 1 December 2023 trading will be enabled on 5-year anniversary properties that have been voted for sale and are going through the sales process. 

We will continue to sell these properties (on a unit-by-unit basis for residential properties (where applicable) to maximise value and block basis for student/commercial properties) in line with shareholders voting intention. However, following investor feedback, with investors voicing a desire to have the option to liquidate their holdings in these properties prior to the sales process completing, we are acting to provide an alternative exit option. 

We understand that for some, liquidity is of greater importance than long-term potential capital gains and by enabling trading in these properties, investors have the option to sell shares and liquidate their positions, providing there is a buyer. 

These properties will trade in the same way as properties currently trading on the Exchange, however there will be enhanced disclaimers to ensure shareholders and potential investors understand that these properties are being sold and there are particular implications:

For sellers: there is a potential trading discount to the underlying property’s value. By selling your shares you may receive less than if you waited for the sales process to complete. 

For buyers: as this property is being sold, you need to be aware of all available information before trading, including; the Individual Unit Details section which charts the sales progress and understand that there may be a delay to the update of the share valuation following unit sale completions. 

These properties will continue to trade until;

• An offer is accepted on the last remaining unit in the block/property for properties valued by Vacant Possession Value e.g. the majority of residential properties where we sell the property on a unit-by-unit basis to maximise value. 
• An offer is accepted on the property for properties valued by Investment Value e.g. student and commercial properties and a small number of residential properties which will be sold as a single block investment in one transaction. 

Please note, when a property has recently completed it’s 5-year anniversary process all outstanding bids and offers in the market will be cancelled prior to trading restarting. This is to enable those who wish to trade to consider any changes to the property’s valuation, following the independent surveyors valuation that is undertaken as part of the 5-year anniversary process. 

Frequently asked questions

Why are we turning on trading on 5-year anniversary properties?

Investor feedback is important to us, and we are acting on this feedback to provide investors with an alternate exit option. 

We understand that for some, immediate liquidity is of greater importance than long-term potential capital gains. By enabling trading in these properties, investors have the option to sell shares and liquidate their positions, providing there is a buyer. This does not impact upon the sales process, which will continue in line with shareholder voting intention. 

It is important that sellers understand that due to the potential trading discount to the underlying property’s value, by selling their shares they may receive less than if they waited for the sales process to complete. 

Why was trading on 5-year anniversary properties not enabled sooner?

Our disclosure set has been constantly evolving. As Individual Unit Details are updated monthly we believe investors and shareholders have the necessary information to trade on 5-year anniversary properties.  Please note that share valuations will continue to be updated quarterly on properties voted for sale.

Will the outcome of the 5-year anniversary vote to sell still be honoured?

Yes, absolutely. We are continuing to sell these properties in line with the outcome of shareholder votes. The enabling of trading on these properties is simply to provide shareholders with an alternate exit option and provide greater liquidity. 

Where can I track the sales process for 5-year anniversary properties?

Sale progress for residential properties can be tracked in the Individual Unit Details tab in the Financials section on each property’s Investment Page on the website. 

For student properties, shareholders can find sales updates in the Latest Update section which is updated quarterly.

When will trading be suspended on 5-year anniversary properties?

These properties will continue to trade until;

• An offer is accepted on the last remaining unit in the block/property, for properties valued by Vacant Possession Value e.g. the majority of residential properties where we sell the property on a unit-by-unit basis to maximise value. 
• An offer is accepted on the whole property, for properties valued by Investment Value e.g. student and commercial properties and a small number of residential properties which will be sold as a single block investment in one transaction. 

What are the potential benefits to investing in a 5-year anniversary property? 

Due to some sellers' desire to liquidate their holdings there may be significantly discounted shares available, compared to the underlying valuation. This is coupled with a clear line of sight to exit, potentially creating a  capital gains opportunity.  

What are the risks of investing in a 5-year anniversary property?

The same risks apply as to trading in any property on the Exchange. You can read more about the general risks to investment here. Residential properties are sold on a unit-by-unit basis to maximise value (where applicable) and the length of time it takes to sell a property could be longer than anticipated. 

How do I trade in a 5-year anniversary property?

The buying and selling process is the same as for any other property trading on the Exchange. 

Can you advise me on whether I should sell my shares or wait for the sales process to complete?

We do not provide investment advice and therefore cannot advise on any trade on the Exchange. It is up to individual investors whether their need for liquidity supersedes that of long term capital gains potential. 

Will dividends remain suspended on 5-year anniversary properties?

Yes, dividends will remain suspended on account of the fact we are making units vacant for sale and thus reducing rental income, while still incurring costs. Any net cash accumulated throughout the sales process will be proportionately returned to all shareholders following the sale of the last unit and voluntary liquidation of the SPV that owned the property. 

Will fees apply to trading on 5-year anniversary properties?

The standard trading fees apply. You can read more here.