RE:Firm Capital Challenges Melcor ( They need some challengingThe last thing Melcor Developments needs to do is to lever up to buy a struggling REIT. And even if they did do it, why on earth would they pay far more than market price? Firm Capital must take Melcor management for complete idiots.
I would like to see Melcor REIT liquidated one way or another. It is always possible a buyer may step up, but this is not an ideal time to sell a whole REIT (as Artis REIT has discovered). The simplest path is to opportunistically sell assets over the next two or three years and distribute the resulting cash to unitholders in dribs and drabs until there is nothing left. This would be fair to all unitholders, would generate proceeds well in excess of the current trading price, and would provide much needed cash to Melcor Developments.
Baby Bunny