You can all this market timing at its finest or most stupid, but if you have bought a property for investment within this period, you are in direct disagreement with Mr Salleh of Second Chance properties.
You can read the rationale for moving 175 mil worth of property to a fund which may next time spin off as well as which properties are involved.
The Group entered the business of investing in properties in 1999-2000. It has held its properties as long term investments and earned steady rental income which became an increasing part of the Group’s revenue and profits over the years. The Group has reaped the benefits manifold over the past 14 years or so in the property investment business.
Going forward, the Board thinks that it is prudent to significantly reduce the Group’s exposure to its investments in properties. Additionally, the opportunity to sell the properties en masse is a rare one and provides the Group with an easier and more expedient means of disposing the Properties as compared to selling each Property individually.
The Proposed Disposal is also expected to unlock the equity tied up in real estate and the additional working capital derived from the proceeds of the Proposed Disposal can be redeployed into the operating business or to fund business expansion in the region, potentially generating a much higher return on equity. Please refer to paragraph 11 (Use of Proceeds) below for more details of the use of proceeds
Mr Salleh have always fashion himself as a market timer. When it comes to holding power, these guys like Mr Salleh have rather strong holding power to wait for the right offer. The right offer might have come along.
What is left of second chance will likely be a cash heavy, ungeared shell that may reduce its dividends.