Wealth Focus has secured access to an allocation of Peet Limited Bonds IPO. Investors looking to apply for an allocation will need to contact us on 1300 559 869.
Peet Limited Bonds
Peet Limited have just launched a 5 year bond with an indicative fixed yield of 7.5%pa.
This is a clean and easy to understand vanilla bond from Peet. The key risk is general business risk of investing in a residential land property developer.
It is no secret that Australia property prices are among the highest in the world and although a correction would not impact on Peet to the same extent as pure residential property developers, it would still significantly impact on their shorter term profitability.
Overall, our view is that the limited size of issue, this week’s rate cut and the lack of high yielding non-bank alternatives means that this will likely list at a premium. |