Galileo Japan Trust delivers for Quest Asset Partners

GJTQuest participated in theĀ  restructuring of Galileo Japan Trust in August 2013 at $1.50 per share. The Trust has always traded well below net tangible asset backing since then while paying an attractive tax deferred yield of approximately 8% per annum.

Quest owns 9.7% on behalf of investors at an entry price of $1.57. Quest investors have also received 34 cents in distributions since 2013.

The unit price was $2.06 prior to the announcement.

On 29th February 2016 the TrustĀ announced a proposal to sell all the 23 properties in the Trust, distribute the proceeds and wind up the Trust. At current exchange rates the proposal would deliver $2.65 of Special Distributions to the unit holders. The vote will take place at an EGM on 23rd March 2016 and if adopted, should see funds flow to unit holders in August 2016.

This proposal if accepted by unit holders will produce a very good 90% return to our investors over just under 3 years. While there is a possibility of a competing proposal there is also potential for delay and of course the proceeds available are at the mercy of exchange rate fluctuations in coming months.

Galileo Japan Trust shares rose 16% on the day of the announcement to $2.40.