Samurai Capital Corp V.SMU.UN

RE: Taken Out @ $30 !!

[gilbert3]

Why do I get the feeling that I'm forced to sell the golden goose? At $30 to ING is 18% premium. 6% yeild is a 3 year distribution premium, but if you factor a modest 6% / year capital gain on Real Estate. We have a 1.5 year premium. The 18% premium will not cover the capital gains tax because its' all cash deal. Summit REIT has found success in one of the less glamorous parts of the real estate business, buying up millions of square feet in light industrial properties and renting to more than 3,000 clients. Since 1996, its portfolio has increased from 1.3 million square feet to 33 million, with revenue of $289-million in 2005. Summit is the No. 1 industrial landlord in Edmonton, Calgary, Ottawa and Halifax, the No. 2 landlord in Toronto and in the top five landlords in Winnipeg, Montreal, Cambridge, Ont., and Kitchener-Waterloo, Ont. It owns property in every province except Newfoundland, with 48.7 per cent of its holdings in Ontario. Summit's formula is to buy mostly one-storey buildings in major metropolitan areas and near airports, areas which have become home to such activities as warehousing and storage, light manufacturing, shipping and professional services. Over the past 10 years, Summit has outperformed the TSX by 290 per cent. These are prime locations for growth. I think SMU.un is selling too cheap.