Axa Property Share Discussion Threads

[skyship] 01/7/2013 15:28

scburbs -

# €5.50 million by 14 March 2013
# €2.00 million by 14 September 2013
# repaid by 13 December 2013

So, now pretty small beer in the scheme of things wouldn't you agree?

[scburbs] 01/7/2013 14:08

Smarm,

Does it? I see many property loans being sold at a discount or not repaid in full. APT should be playing hardball with its precious resources not giving them away.

APT is in wind up mode. For a fund in wind up mode is it sensible to invest shareholder funds ready for distribution (which is what the excess disposal proceeds represent) into an Italian JV where the lease expires in June 2014 and extension negotiations are going badly! How long will to take to realise the value of an empty industrial property in Italy if the tenant doesn't extend?

The Agnadello lender is probably desperate to get out and APT could have got a much better deal (i.e. discount) in order to agree to apply its other resources to the loan.

[philjeans] 01/7/2013 13:48

Pay it off early - save finance costs.

I'm happy with that.

50p plus coming up here soon.

[smarm] 01/7/2013 13:35

The loan has to be paid back....why do you say ill-advised?

S

[scburbs] 01/7/2013 12:47

This looks like the latest on this loan agreement. It is down to €5.69m which is a positive, but is reflective on the fact that cash (e.g. €2m from Pankower Allee) is already being diverted to Agnadello.

"The joint venture loan facility at the Company's subsidiary Property Trust Agnadello S.r.l. of €5.69 million (50% of €11.37 million joint venture loan) with Crédit Agricole matured on 14 December 2012, and the Group has successfully completed negotiations to extend the facility to 13 December 2013. The Group has agreed to pay to the lender any surplus cash received on sales in the portfolio in excess of the allocated loan amount payable under the main loan facility. The payment amount is reduced to the extent that the total cash available to the Group is below €2.00 million. In any event, the Group is obliged to reduce the loan balance to €5.50 million by 14 March 2013 and to €2.00 million by 14 September 2013. The loan is to be fully repaid by 13 December 2013."

[scburbs] 01/7/2013 12:35

Skyship,

Hasn't APT entered into the ludicrously ill advised agreement to pay down the Agnadello loan with any excess disposal proceeds? At least they can get out of this crazy arrangement at the end of the year, but it almost makes you want to hope they don't make too many disposals in 2013 if the cash is just going to go to the Agnadello lender.

I am not up to date with APT, have they since got out of this crazy agreement? I also can't see much progress with the imminent expiry of the lease at Agnadello (which makes the agreement all the more crazy) other than the worrying potential one year extension for a capital contribution announcement in the interims.

"The Company has successfully completed negotiations to extend the Agnadello loan expiring on 14 December 2012. The loan is now extended until 13 December 2013. AXA Property Trust has agreed to pay to the lender any surplus cash received on sales in the portfolio in excess of the allocated loan amount payable under the main facility. The payment amount is reduced to the extent the company's total available cash is below €2 million."

[skyship] 30/6/2013 12:30

"The Company has commenced the managed wind-down of its portfolio with a view to realising its investments by December 2015 in a manner that achieves a balance between maximising the value from the Company's investments and making timely returns of capital to shareholders."

Now look at where we are:

# The main loan facility shows an LTV of 47.4% versus a MAX of 60%.
# The bank balance shows excess funds of £2.1m over f/c 12m Capex.
# The sale of the Dresden and Berlin assets net £3.1m
# The sale of the Koethen & Montabaur assets should net £8.5m
# The sale of the Karben & Keyser Centre (Antwerp) assets should net £13.5m

So, possibly by end Q3 we could be holding disposable cash of c£27m. Possibly.

I may be being a tad optimistic, however a Q3'13 first distribution is a possibility; Q4 a near certainty IMO.

How much could the first tender be? My guess is that they will want to maintain a reasonably low LTV, perhaps a ceiling of 50%. So my guess is repay £12m off the main facility and repay to shareholders £12m with the first tender, ie c20% @ 60p.

[skyship] 24/6/2013 13:18

jaws - sorry, SGRO....had a mental block whilst I was typing! Have amended...

[jaws6] 24/6/2013 12:10

skyship
Thanks, that is sgro new ticker .
will try to check how APT affected with this.plus German property ipo next month by guy hands coming.

[skyship] 24/6/2013 11:52

Taken from the SGRO thread. Could have some bearing on our Agnadello Italian asset;

====================================
THE owner of the Slough trading estate - home to David Brent's The Office - is plotting an ambitious European deal with the Canadian pension fund that looks after Mounties' retirement savings.

Segro, the industrial property specialist, is in talks with the Public Sector Pension Investment Board (PSP Investments), one of Canada's biggest funds, over a logistics joint venture on the continent.

The move comes as property companies scramble to control freight and transport hubs across Europe. The boom in internet shopping, combined with increasingly globalised manufacturing and lengthening supply chains, has driven demand for warehouses in key areas around Charles de Gaulle airport in Paris and the Rhine-Ruhr region in Germany, for example.

There have been low levels of warehouse building since the financial crisis. In a sign of the growing appetite, Prologis, the American industrial giant, teamed up with Norway’s sovereign wealth fund last year to buy logistscs properties.

... More, which is for subscribers.
==================================

[skyship] 31/5/2013 17:14

Quite so - will look for a cheap offer...

[zastas] 31/5/2013 16:38

Thanks Sky, I remain in.

Given much else has been bid up fully, APT is not a bad place to keep cash for now.

[skyship] 31/5/2013 14:27

So, that 2.7% stake went to a New York hedge fund, increasing its stake from 3.5m to 6.2m (6.2%):

"KG Investments Fund LLC is a private investment partnership focusing on companies and special situations believed to be trading at meaningful discounts to their intrinsic value. Headquartered in New York and founded in 2008, KG Investments Fund LLC focuses on building concentrated, high conviction positions with a multi-year investment horizon."

A pretty good sign I would say...

[jaws6] 29/5/2013 09:33

ok,no prob
tks.
seen some more trade today too at 38.25

[skyship] 28/5/2013 16:18

So I see - a 2.7% stake changes hands.

Interesting; but the share price remains in neutral territory for my book...

[jaws6] 28/5/2013 15:34

skyship
2.7 million trade gone today at 37.25 ?

[skyship] 18/5/2013 11:58

BT - Sold the last of my holding @ 37.8p earlier this week.

NAV improvement is currency related and pretty much in line with my 278 above. The statement also slightly more positive; though makes no mention of Italy.

IMO the German properties all look highly marketable; and they remain the bull case here. It is the Italian properties specifically which suggest the risk of a long tail to the liquidation.

The most positive aspect of the Statement was this para, which I believe to be a new indication of staged liquidation payments; and offers hope of resolution within 3yrs:

"The Company has commenced the managed wind-down of its portfolio with a view to realising its investments by December 2015 in a manner that achieves a balance between maximising the value from the Company's investments and making timely returns of capital to shareholders."

I am in two minds over this one. Will be watching from the sidelines as I think they are a BUY @ 36p and a SELL @ 38p!

===========================================================
Working Model GRY stats are as follows assuming a 37.5p SP:

Liqn Value...Liqn Date...Liqn Date
.............31/03/16....30/06/16

52p...........12.07%......11.05%
55p...........14.28%......13.06%
===========================================================

[badtime] 17/5/2013 17:55

Sky u still in?

[skyship] 09/4/2013 09:13

jaws - thnx for that, but the article relates to AXA R.E.I.M. - nothing whatever to do with APT which has all of its assets in Continental Europe - primarily Germany.

[jaws6] 09/4/2013 07:15

APT artical in citiam today

[skyship] 05/4/2013 10:36

Sue - message for you over on the ACD thread.

[jlo10] 04/4/2013 21:23

APT was never a get rich quick scheme - just very good chance of a return much better than bank interest
Not sure how you read such gloominess into it - do all these statements not go on about risks of achieving NPV values
Management have targets - are our interests and theirs not aligned

[smarm] 04/4/2013 17:59

skyship - reading the circular again I think it's doubtful anything like 52p will be achieved. I can't make my mind up whether they are gloomy or angry but I figure the money can work harder elsewhere and I didn't much care for their management fees. You are probably right to stay in but hey ho...decision made.

Yes, thank you, enjoying CIC. Not in DSC...need persuading on that one :-)

ACD is heading for a sell on my chart. A lot of weakness about.

S