Interesting comments on state of Mongolia and Mongolian real estate market.
The economy is much stronger than the headlines would suggest and I expect organizations like the IMF to begin raising their forecasts in the near future. Ever since the government passed the new foreign investor law, many mothballed projects are now moving forward again and we expect to see the growth rate accelerate in the spring as the capital spending starts up again.
I have to tell you that the economy hasn't been this strong since we first started our business in 2011. We have only one vacancy in retail space and for the first time in our company's history, we have no rent that is more than 30-days delinquent, which is a great indicator of our tenants' ability to pay in a timely way. Even more tellingly, we have waiting lists on some of our high-demand properties as there is a severe shortage of well-located retail space and to a lesser extent, a shortage of well-maintained office space.
If you believe what he is saying, and I do, then MGG and the MSE are very cheap. Many people think the Mongolian economy may grow as much as 15% or more this year. The company stock has got sucked down along with all the other EM's but the MSE is recovering and it sounds like the actual real estate business is doing fine.
Disclosure: I am long MNGGF.