@ValkoinenPeura already linked the partial payment of Asunto redemptions. So, now we are paying 1/3 of the redemptions made in H1’24. The 4.7 announcement, on the other hand, means that redemptions made in H2’24 will be postponed. Asunto’s monthly review states that 3MEUR of debt was raised in June, and at the same time, 1.5 MEUR of profit share was paid in June. Cash at the turn of the year was just under 1 MEUR, so with these numbers, the net cash would now be around 2.5 MEUR. No properties were sold in June, and it’s hard to believe that the company would announce redemptions in advance before potential sales are closed. Therefore, it is logical to assume that 1/3 of the pending redemptions will be paid from that net cash. Most of the cash will, of course, be used for redemptions, meaning roughly the redemptions could be somewhat over 2 MEUR. This, in turn, would mean that H1’24 redemptions would total 6 MEUR, or about 15% of the entire fund. This would actually be quite well in line with other housing funds as well. Note, many assumptions have been made here, so we will have to wait another quarter before we see the actual number. This doesn’t have a very big significance for Titanium right now, because the fund is very small and Hoiva owns over a third of the entire fund (I’m not sure if Hoiva pays management fees).
In this regard, I think it would be quite sensible for Titanium to consider a merger of Hoiva and Asunto. If H2’24 redemptions are, for example, at the H1’24 level, then Hoiva will own over 50% of Asunto, and it is undeniably too small as a fund. The properties are hybrid properties, so their inclusion in Hoiva could also be justified in this respect.
Then, the eternal question posed by @Tunturisusi. Is there now an exceptional market where selling is a very big mistake and against the owners’ interest? Is market normalization waiting around the corner, where prices will bounce back up and things will start rolling? I don’t believe this, and I have argued multiple times in another thread that we are now in a new normal, where interest rates are something other than zero. eQ, for example, also seems to believe this: Finanssisektori sijoituskohteena - #732 käyttäjältä Sauli_Vilen - Osakkeet - Inderes forum