John McGrath rings bell on bubble

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From the AFR:

Real estate king pin John McGrath plans to sell down a meaningful stake in his business as part of a mooted $200 million initial pubic offering.

…Sources said McGrath Estate Agents was expected to generate earnings before interest and tax of about $20 million in fiscal 2016 and net profit of about $15 million…A float would likely take place in November…

It’s early days, of course, but with a concentrated exposure to the Sydney property bubble and a launch date in November, this looms as one of the shorts of the great Australian adjustment. Bring it on, John!

About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.