Since 1982, Harvey
Norman has not only been selling appliances, electronics and furniture but also “land banking”.
When land values and the potential for rezoning are considered, investors might be buying the retail businesses for very little.
We don’t believe, however, that the property and retail businesses can be separated easily and that leaves investors tied to the deteriorating credit cycle. One interesting possibility is that Gerry Harvey, being the largest shareholder, might be incentivised to pay a large special dividend if Labor were elected and reformed franking credits.