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Aberdeen Standard European Logistics Income
Chris Ould
Posted: 28 November 2017 20:52:02(UTC)
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Had been taking a look at this when Ian Cowie published an article on Citywire, so thought i would canvas opinion.

Currently in TRY (8%), which gives me some exposure to these kind of assets...but understand that online buying in Europe is some way behind Britain, so the demand for logistics 'should' remain strong.

Highlighted here - https://www.thetimes.co....-hanging-fruit-6rgblhs8x
Tim D
Posted: 28 November 2017 22:20:01(UTC)
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Had a very quick scan of the interesting bits of the prospectus the other day. I'm a bit of a sucker for "alt income" property stuff and can't help taking a look (although actual purchases more selective). This one seems interesting but didn't quite have the same "TAKE MY MONEY" appeal of the original BBOX IPO... couple of things which make me wary are: 1. The Aberdeen connection. I have small holdings in a number of commercial property funds from a handful of the major companies going back ~5-7+ years and last time I checked the Aberdeen one had been the worst of the bunch. Maybe they're not that good at property? (OTOH not sure what the merger with Standard Life means for who's running it) 2. I'd want to look more closely at the mix of property they're actually proposing to get into. BBOX is interesting because it specialises in the really humongous boxes which are in short supply in the UK. But there seems to a bit of a recent glut of me-too stuff appearing attempting to rebrand any old edge-of-town light industrial space as bleeding-edge e-commerce infrastructure. I'm sceptical; you can get exposure to that sort of thing through any old commercial property REIT (I passed on Warehouse REIT). And on top of that, the constraints which make BBOX interesting in the UK won't necessarily apply in Europe. I'm quite prepared to believe that Europe's behind the UK on the online shopping revolution curve... but it's not (yet) obvious to me that this is a particularly good way to play it. Right now if I had a choice between sinking some cash into this new Aberdeen thing or TRY... I'd be more inclined to add to my TRY (if TRY was back on double digit discount it'd be even more of a no-brainer). But I'll take another look at the IPO doc in the next few days and see if anything changes my mind. Just my initial thoughts anyway.
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Micawber on 29/11/2017(UTC), Mr Helpful on 29/11/2017(UTC), Harry Trout on 29/11/2017(UTC), Chris Ould on 29/11/2017(UTC), dlp6666 on 05/12/2017(UTC), I predict a riot on 08/12/2017(UTC)
Micawber
Posted: 29 November 2017 07:06:29(UTC)
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SGRO would give exposure to UK and good EU logistics. I did well out of it but recently sold and used the proceeds to add to TRY. This was partly to rationalise and reduce numbers of holdings at a time of increasing uncertainties and partly because there's been little to choose between the well-managed TRY and SGRO's performance lately (after the latter's re-rating 2013-2016). TRY gives you more diversification of course. I'm not going for the new REIT.

In general the logistics story is sound, but it's now well known so I doubt there's an edge in the price.
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Mr Helpful
Posted: 29 November 2017 08:40:59(UTC)
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Micawber;53794 wrote:

In general the logistics story is sound, but it's now well known so I doubt there's an edge in the price.

+1
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Chris Ould on 29/11/2017(UTC)
Big boy
Posted: 29 November 2017 19:14:52(UTC)
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Normally Fund issues at top of market when investors on the feed. The article was poor. Will their be debt in order to ramp up the yield and what is the LTV....once breached the revenue has to go to the capital a/c. so yield no support.
How are the fees,expenses and debt accounted for....ie revenue or capital a/c. It's very easy to provide high yields by smoke and mirrors so I wish the press would show that they understood what they have recommended.
Not for me ....
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Mickey on 29/11/2017(UTC), Guest on 01/12/2017(UTC), Guest on 03/12/2017(UTC), dlp6666 on 05/12/2017(UTC), I predict a riot on 08/12/2017(UTC), Tim D on 11/12/2017(UTC)
Dave John
Posted: 30 November 2017 05:06:33(UTC)
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Joined: 29/11/2017(UTC)
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Hello,

I was considering setting up a account with Hargreaves Lansdown to start trading in stocks, ETf's. I am new to this and wanted to know if this is the simplest way for a novice to start off?

Regards...
King Lodos
Posted: 10 December 2017 23:20:47(UTC)
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Weighing this up.

The manager, Evert Castelein, has been managing Aberdeen's European Balanced Property Fund since '11, which is an institutional property income fund that's done a pretty stable 6.9% annual return (mostly divs) since launch – obviously during a period of quite low inflation.

Certainly in the region of what this fund's aiming for (5% income and 2.5% capital growth), and more stable than comparable European property trusts ... So I don't think there's a problem with management .. I like the investment case for online retail, and fairly decent inflation-linked income as I'm cutting down on P2P lending and high yield a little
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Tim D on 11/12/2017(UTC), I predict a riot on 11/12/2017(UTC)
King Lodos
Posted: 11 December 2017 01:48:19(UTC)
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I've gone with a small investment.

I imagine with BBOX on a 10% Premium, that probably limits this climbing to much of an early premium (if at all) .. I'm hoping there'll be a little demand for a decent non-UK source of income
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dlp6666 on 11/12/2017(UTC)
Micawber
Posted: 11 December 2017 06:52:24(UTC)
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Dave John;53821 wrote:
Hello,

I was considering setting up a account with Hargreaves Lansdown to start trading in stocks, ETf's. I am new to this and wanted to know if this is the simplest way for a novice to start off?

Regards...

Yes.
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dlp6666 on 11/12/2017(UTC)
andy mac
Posted: 11 December 2017 11:30:22(UTC)
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Iweb is cheaper to hold shares etc
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dlp6666 on 11/12/2017(UTC)
I predict a riot
Posted: 11 December 2017 13:26:50(UTC)
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It has a certain appeal to those wanting to Corbyn proof their portfolio. If it looks like the looney will win the next election I am sure many people will be looking at foreign income sources and this looks as good as many.
King Lodos
Posted: 11 December 2017 13:43:30(UTC)
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That's what I'm thinking .. And if you see these Amazon Dash Buttons, evidently people are using online retail more and more for consumer staples.

I buy toothpaste, shampoo, half my food online – usually in bulk .. You can see how commercial real estate could be vulnerable to downturns, but warehouses to me seem like they could be much more defensive

https://cnet2.cbsistatic.com/img/KV0jY0_CCzvyep1AS-Y6I28BGgc=/fit-in/570x0/2017/01/20/812fa1a5-88a7-49ae-a8cf-48c01cafc325/screen-shot-2017-01-20-at-2-03-01-pm.png
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