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Melcor Developments Ltd T.MRD

Alternate Symbol(s):  MODVF

Melcor Developments Ltd. is a diversified real estate development and asset management company The Company develops and manages mixed-use residential communities, business and industrial parks, office buildings, retail commercial centers, and golf courses. The Company operates in four segments: Land, Properties, REIT, and Golf. The Land segment is responsible for purchasing and developing land to be sold as residential, industrial and commercial lots. The Properties segment owns approximately 24 leasable commercial, retail and residential properties and other rental income producing assets, such as parking lots and land leases. The REIT segment owns approximately 38 leasable commercial and retail properties and other rental income producing assets, such as residential property, parking lots and land leases. The Golf segment owns and manages three 18-hole golf course operations (one of which is 60% owned) and has a 50% ownership interest in one 18-hole golf course.


TSX:MRD - Post by User

Comment by babybunnyon Apr 06, 2022 12:52am
124 Views
Post# 34579205

RE:RE:Melcor - Will this be going private ?

RE:RE:Melcor - Will this be going private ?Little chance of going private.  With NAV well north of $30 per share, it would take an offer over twice the current share price to gain approval from a majority of minority shareholders.  Approval even at that price level is questionable, considering the vast land assets held on the books at their original purchase price from decades ago.  Anyway, why would the Meltons go to so much trouble and stick a dagger in their shareholders' hearts when they can slowly build their percentage ownership by simply buying in the open market and/or using the NCIB or a SIB.

What would not surprise me:  a friendly offer from the likes of Brookfield Property Partners or Howard Hughes Corp for a portion of Melcor's assets.  A merger of Melcor REIT with another REIT might make sense also - a way to attract the attention of the analysts who currently ignore the tiny REIT.   But let me be clear:  a corporate action is not part of my investment thesis; MRD is a screaming buy as a going concern.

Just me opinions, as always.

      


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