Federico Garza-Bueron Considers Value of Woolworth Property
Online, August 16, 2012 (Newswire.com) - Australian analyst Andrew McLennan surprised many with his advice for Australian giant Woolworth to sell in June of this year. A recent article from The Wall Street Journal discusses McLennan's advice. Investment expert Federico Garza-Bueron weighs in on the discussion to explain reasons behind McLennan's suggestions.
According to the article, McLennan had concerns about the Australian supermarkets annual spend on property accumulation. The group estimated spending one billion Australian dollars on yearly property rates. Federico Garza-Bueron is an investment representative serving clients across the country who commented in a new statement to the press about the issue. "McLennan was wise to take advantage of this time in the industry. Falling bond yields could make it easier for Woolworth to sell some of their existing properties," commented Garza-Bueron.
McLennan seems to be mirroring Garza-Bueron's foresight exactly. In the article he stated, "We estimate that without a significant divestment program, the value of property will accumulate to around $7.9 billion by fiscal 2016." He also stressed that his main concern is adding quality to Woolworth's property assets.
Federico Garza-Bueron says there is little question that improving Australia-listed Retail Investment Trusts (A-REIT) valuation could increase the property value of Woolworth properties. According to the article, "Stocks like BWP Trust - which owns and leases Bunnings Warehouse properties to Wesfarmers and Charter Hall Retail REIT are trading a premiums to net tangible assets, or NTA, according to CBA data. Investa Office Fund, Cromwell Property Group and Dexus Property Group are all trading at narrow discounts of 1.5 percent or less."
The comments from Federico Garza-Bueron are affirmed by the explanation offered by Winston Sammut, Maxim Asset Management Managing Director. "A Woolworth's Property Trust could certainly be of interest given it would be diversified with supermarket, hardware stores, pubs and hotels as well as gas stations," Summut stated in Deal Journal.
Federico Garza-Bueron believes that this type of strategic planning could serve to benefit Woolworth as well as its investors. Garza-Bueron uses his investment expertise to serve clients with property investments such as these, as well as investments in stocks, bonds and trust funds.
ABOUT:
Federico Garza-Bueron is an investment representative in New York, a role in which he has served since 2010. Prior to this post, he spent a decade guiding entrepreneurial ventures from the startup stage to profitability, and structuring a business and investment office for a leading Mexican family. In the 1990's, Federico Garza-Bueron managed accounts for high net worth clients at BBVA Bancomer in Monterrey, Mexico. He holds a Bachelor's degree from Boston College, a Master's degree from Universidad Regiomontana in Monterrey, and an MBA from Columbia University. Currently, Federico Garza-Bueron serves as Event Co-Chair for the Private Equity Committee of Columbia Business School, as well as serving as a Board Member for the non-profit relief agency Friends In Deed.