Castle Asia Share Discussion Threads

[waldron] 09/9/2007 06:19

€20bn listing boosts wind farm growth
Spanish group to float world's largest renewables company as green power industry blows hot
By Tim Webb
Published: 09 September 2007
Iberdrola, the Spanish energy giant that bought ScottishPower last year, will raise up to €4bn (£2.7bn) when it floats the world's largest wind power company.

The Spanish hope to list their Iberenova division, which analysts say will be valued between €16bn and €20bn, next month – in Madrid and not in London, like the parent company.

Iberenova is the world's largest wind farm operator and owner, with a portfolio of wind farms with 6,500MW capacity, as well as 350MW of hydro power in operation – equivalent to about a tenth of the UK's total generating capacity – and a further 40,000MW of planned wind farms in the pipeline. Included in the portfolio are the wind farms owned by ScottishPower, made up of 1,750MW operating capacity in the US and 360MW in the UK.

By selling one-fifth of the subsidiary's shares, Iberdrola will raise capital to finance its planned developments. The construction of wind farms requires a large upfront investment – typically just under £1m for every MW of an onshore farm. However, wind farms cost almost nothing to run compared to coal and gas plants.

Credit Suisse, JPMorgan, Merrill Lynch, Morgan Stanley and the Spanish bank BBVA are handling the float. Bankers are still working on the shareholder prospectus and are planning roadshows for prospective investors.

Iberdrola confirmed last month the division would be spun off in the final quarter. It wants to get the float away early next month if possible, with the new company having an English name.

Iberdrola bought ScottishPower in November for £11.6bn in cash and shares. Banks arranged a debt financing package of £8bn to pay for the acquisition and help refinance debt. Raising up to €4bn from the float to fund Iberenova's expansion will help free up Iberdrola's balance sheet.

The wind farm industry has grown massively in recent years as government subsidies, high oil prices and economies of scale start to take effect. Airtricity, the Irish wind farm company run by Eddie O'Connor, with over 10,000MW of wind farms at the planning stage, is rumoured to be looking to sell its US operations for a reported £1.5bn. The company, which is 51 per cent owned by infrastructure company NTR, could also be floated by its parent.

Mr O'Connor has ambitious plans to build dozens of huge offshore wind farms between the UK, Germany and the Netherlands in the North Sea, connected by a European offshore "super grid" to provide the continent with renewable energy. Spreading the wind farms wide enough should ensure that the wind is always blowing and the turbines turning somewhere.

Airtricity has already submitted plans for the first stage of the project, to build a 10GW wind farm – enough to provide power to over three million homes – consisting of about 2,000 turbines which would cover an area of 3,000sq km.

Despite moves towards more economic and regulatory integration, a Europe-wide electricity market has yet to emerge. A North Sea grid, which would need international regulation, could be the first step towards this. Mr O'Connor wants support from the three countries and the European Union, as well as a commitment from the European Investment Bank to underwrite the debt required to finance the project.

[waldron] 03/9/2007 05:58

Best locations for your home abroad
Simon Lambert, This is Money
1 September 2007
UK house prices continue to race ahead of European neighbours. The cost of a home in Britain has risen by 90% over the past five years - faster than property in any other eurozone country except Spain, according to a new report from Halifax.



A PLACE IN THE SUN: Spanish house prices continue to rise more quickly than those in the UK



And the rise in home equity and comparative good value of property overseas has led more people to consider a foreign home as a worthwhile investment.
Almost a quarter of people would like to own a property abroad according to research by money exchange specialist Foreign Currency Direct – with one in six saying they would consider it as a good investment.

For many of the thousands of Britons who have purchased homes in Spain, the most popular overseas destination for UK buyers, returns have been healthy with Spanish house prices rising by 100% over the past five years.

This compares to a 73% rise in France and 56% increase in Greece over the same period, according to Halifax.

Tim Crawford, group economist at Halifax, said: 'UK house prices have risen more rapidly than in its eurozone neighbours over the past five years.

'UK house price growth, however, has slowed in the past couple of years compared with the likes of Belgium and France recording bigger increases.'

The cost of a home in the euro currency countries has risen by an average of 40% over the past five years – slightly higher than the 36% increase in the value of homes in the USA and Canada.

However, those looking to purchase a foreign home are advised not to rely on past performance as an indicator of future returns, with the US housing crash and warnings about the Spanish property market illustrating the problems of doing so.

A downturn over the past 18 months has led to a slump in American property prices, with an annual fall of 1.3% to the first three months of 2007, according to Halifax.

Meanwhile, a combination of oversupply and rising interest rates has brought problems to Spain's housing market.

Financial information service Bloomberg reported that Madrid research firm RR de Acuna said 700,000 new homes will go on sale in 2007 – 300,000 more than predicted demand.

The rapid rises in house prices in traditional British buyers' favourites Spain and France has led to property there looking less of a bargain.

A typical home in Spain now costs £150,000, while a property in France costs £120,000, compared to an average of £187,000 in the UK, according to Halifax.

Stephen Hughes, of Foreign Currencies Direct, which offers currency for overseas home purchases, said it has seen more interest in cheaper alternatives in emerging areas.

He said: 'A number of Eastern European countries are delivering better value for money. People are keen on places like Bulgaria but also more traditional holiday favourites such as Cyprus and Malta which recently joined the EU. Then there is Cape Verde, which is billed as the new Canary Islands.'

With bargain properties readily available in many emerging areas, experts advise potential buyers not to get swept up by the holiday feeling and commit to a purchase without fully considering the implications.

'Before people rush into buying they they need to think is it a place they will really go,' says Stephen Hughes.

'People need to spend some time in and around the area and speak to other people who have bought there. It is important to look at how convenient a place is to get to and for developers building to good quality European standards.'


UK & EUROZONE HOUSE PRICES Country One-year change Two-year change Five-year change
Source: Halifax/European Central Bank, House prices to March 2007


1yr 2yr 5yr change

Spain 14% 57% 100%
UK 13% 30% 90%
France 15% 48% 73%
Ireland 12% 33% 71%
Belgium 18% 39% 60%
Luxembourg 0% 24% 58%
Greece 11% 20% 56%
eurozone 8% 24% 40%
Netherlands 5% 15% 38%
Finland 6% 21% 29%
Portugal 0% 2% 7%
Austria 5% 3% 6%
Germany -2% -4% -5%

[waldron] 31/8/2007 15:41

French retailer Auchan to get 291 mln eur from sale of its stake in Moroccan ops
Date : 31/08/2007 @ 15:13
Source : TFN


French retailer Auchan to get 291 mln eur from sale of its stake in Moroccan ops


PARIS (Thomson Financial) - French retailer Auchan said it will receive 291
mln eur for its 49 pct stake in the Moroccan supermarket chain Acima and
hypermarket chain Marjane.
On Aug 24, Auchan announced it would sell the stake to its partner in both
chains, the Moroccan company ONA, for an undisclosed amount.
[e-mail]
mjs/slj

[waldron] 30/8/2007 07:38

Madrid shares TFN at a glance outlook
Date : 30/08/2007 @ 07:36
Source : TFN


Madrid shares TFN at a glance outlook


MADRID (Thomson Financial) - Shares are expected to open higher, extending
yesterday's gains after a strong close on Wall Street overnight, with Altadis
likely to come under pressure following its warning that full-year profit will
be hit by ongoing dollar weakness.
Yesterday, the IBEX-35 index ended up 58.8 points at 14,183.6, after trading
in a range of 14,014-14,209.

FORTHCOMING EVENTS
TODAY
-Spain preliminary Aug HICP
TOMORROW
-SOS Cuetara H1 results.

TODAY'S PRESS
-Metrovacesa invests 340 mln eur to acquire 8 buildings in Germany
(Expansion)
-US' Abercrombie targets entering Spain to compete with Inditex' Zara (Cinco
Dias)
-Santander buys out Banesto technology company for 41.2 mln eur (La Gaceta
de los Negocios)
-Mediapro to file complaint about Sogecable with competition authorities (La
Gaceta de los Negocios)
-Spain's Clos to ease Enel conditions on Endesa, maintains veto (El
Economista)
-Spain property co Fincas Corral closes offices amid real estate slowdown
(Cinco Dias)

LATE CORPORATE NEWS
-*VUELING UPGRADED TO 'NEUTRAL' FROM 'SELL' BY GOLDMAN SACHS, TGT 12 EUR VS
20
-*ALTADIS SAYS DOLLAR WEAKNESS TO WEIGH ON FY 07 RESULTS
-*ALTADIS H1 NET 246 MLN EUR VS 194 MLN
-*ALTADIS H1 EBITDA 590 MLN EUR VS 550 MLN
-*ALTADIS H1 NET REVENUES 1.938 BLN EUR VS 1.934 BLN
-Repsol YPF settles US suit on reserves for 8 mln usd
-Grifols H1 net climbs to 45.4 mln eur on lower costs, higher prices

MARKET SENTIMENT
-The broad market is expected to open higher, lifted by Wall Street's strong
overnight gains amid hopes for a rate cut, with focus later in the session on
key US data.
-Altadis is likely to come under pressure, however, after the company
reported first half results at the low end of analyst forecasts, and issued a
full-year profit-warning due to continued dollar weakness.
[e-mail]
tr/jdy/ejb

[waldron] 29/8/2007 18:12

Madrid shares close higher as Wall Street rebounds; heavyweights gain UPDATE
Date : 29/08/2007 @ 17:11
Source : TFN


Madrid shares close higher as Wall Street rebounds; heavyweights gain UPDATE


(Updates with full report)
MADRID (Thomson Financial) - Share prices closed higher, lifted by Wall
Street's early rebound, with heavyweights such as Telefonica and BBVA gaining,
while Sacyr Vallehermoso remained under pressure on debt concerns.
The IBEX-35 index ended up 58.8 points at 14,183.6, after trading in a range
of 14,014-14,209.
Equities opened lower, depressed by sharp overnight losses in the US and
Asia amid deepening concerns over a global credit crunch, only to turn higher by
midday on bargain hunting.
Stocks moved back in the red by midafternoon as leading banks tracked losses
in US financial peers, but staged a rally by the close thanks to Wall Street's
overall bargain-hunting rebound.
"We expected more panic in the markets today, but we tracked Wall Street's
rebound to close higher on decent volumes," a trader at a local brokerage said.
Main heavyweights closed higher, with Telefonica up 0.04 eur at 17.66,
Repsol YPF adding 0.22 to 25.82, BBVA adding 0.06 to 16.64 and Santander 0.04
higher at 13.18.
Domestically-focused banks continued to underperform amid ongoing credit
concern woes, with Bankinter shedding 0.19 to 10.92 and Banesto off 0.01 at
14.34.
Sacyr Vallehermoso remained under pressure on debt concerns, dropping 0.83,
or 2.9 pct, to 27.80.
Other constructors fared better, with Acciona gaining 3.50, or 2.02 pct, to
176.60, after Citigroup reiterated is 'buy' stance and 265 eur-per-share target
price, praising the builder's renewable energy business.
Grupo Ferrovial gained 0.85 to 63.6 with investors awaiting news as to
whether the company will put up its Duty Free stores business for sale in the UK
in September, as it represents cash-in for the company from a non-strategic
business.
Abertis added 0.21 to 21.57, amid news of stake building by La Caixa.
Among smaller caps, Grifols dropped 0.43, or 2.89 pct, to 34.96, on
profit-taking following recent strong gains ahead of solid first-half results
released this afternoon.
[e-mail]
tr/slj

[bluenose851] 29/8/2007 13:40

d9shell

I am afraid i am a bit too young to have heard of trevor hockey. I was only 6 when you left Brum for scotland.

I will email you and we can compare notes on goalkeping errors!!!

[waldron] 29/8/2007 07:40

Madrid shares TFN at a glance outlook
Date : 29/08/2007 @ 07:38
Source : TFN


Madrid shares TFN at a glance outlook


MADRID (Thomson Financial) - Shares are expected to open lower, extending
yesterday's losses and after Wall Street closed sharply down amid deepening
concerns over a global credit crunch.
Yesterday, the IBEX-35 index closed down 180.7 points at 14,124.8, after
trading in a range of 14,091-14,300.

FORTHCOMING EVENTS
TODAY
-Grifols H1 results
-Spain final Q2 GDP. Forecast to grow 0.8 pct from Q1, 4.0 pct yr-on-yr
TOMORROW
-Altadis H1 results, conference call at 9.30 am. Net forecast: 252.4-259.1
mln eur vs 194.1 mln
-Spain preliminary Aug HICP

TODAY'S PRESS
-Russian magnate Deripaska claims prior ownership of ACS's 25 pct Hochtief
stake (Cinco Dias)
-Mediapro offers truce over football rights with Sogecable until court
decision (Expansion)
-Repsol YPF to pay 8 mln usd compensation over legal claims after reserves
cut (El Pais)
-El Corte Ingles' unions back call for retailer's IPO (El Economista)
-BAA criticised by watchdog for 'misleading' airport shoppers on prices (FT)
-Telefonica's Movistar to bid for Honduras' 3rd mobile licence (Cinco Dias)

LATE CORPORATE NEWS
-OUTLOOK Grifols H1 sales seen robust amid early EMEA approval for new
generation IVIG
-La Caixa raises Abertis stake to 24.619 pct vs 24.547 - bourse
-Renta 4 board to seek shareholder approval for IPO

MARKET SENTIMENT
-The broad market is expected to open lower, extending yesterday's losses
and after a heavy sell-off on Wall Street to the close, amid continuing concerns
over the deepening global credit crisis.
-Grifols will be in focus ahead of first half earnings due before the
opening, which are expected to show solid sales on higher demand and more
favourable price environment for hemoderivatives.
-ACS may come under pressure after a report that Russian businessman
Deripaska is prepared to take legal action to reclaim the Spanish builder's 25
pct stake in Hochtief, to which he claims prior ownership.
[e-mail]
jdy/gp

[tim] 28/8/2007 16:16

d9

If you live there and enjoy the lifestyle and have bought a home rather than an investment then you are doing well. I wish you every luck and happiness.

The people I'm concerned about are the ones that bought holiday homes/investments - the concept of which for the average Brit, will prove to be deeply flawed I feel. Developers and agents who fed of this pyramid are going down with investors, which I feel is entirely apt.

The economy of Spain now has the secong highest trade deficit in the world, and a population with huge debt. A sad legacy of a miracle economy built on houseing.

[waldron] 28/8/2007 16:09

thanks D9, if you carry on like you're going, we all can have a chuckle.

cheers bluenose,tim et al too.

[tim] 28/8/2007 14:29

Taking advice about the state of the huseing market from an estate agent is as perilous as similar advice about stocks from an investment banker, both will say buy regardless and talk up the market. In a bull market its a screaming buy as you can't lose, in a bear market its buy cos stocks/houses are cheap.

Looking at the news today with houseing starts and other woes, its looks like we are about to retest lows on equities around the world. Despite the best efforts of CBers and politicians, it appears the problems in the US won't go away. And why should they. Houseing inventory hit an all time high this week, the highest since the last recession, its reckoned that there are 10 sellers chaseing every buyer in some states. To compound problems fewer and fewer people are able to qualify for loans they require.

The problems were caused by too much and too cheap credit, and the apparent solution seems to be even more and cheaper credit (reduction in discount rate).

Its hard not to imagine this spilling over into the UK next year as houseing as an investment goes from being the most loved assett to the most hated. If the UK houseing market starts to slide, it would decimate the houseing market in Spain.

Given the punative tax charges for renting for non residents (a charge that applies even if the property is left empty)and the huge oversupply, at some stage soon, those hundreds of thousands of investors funding every month a property that they can't sell, but can't afford to keep financeing, will have to come out of denial and sell at what price they can get.

Unless you are buying as a way of life, I would not advise any one to touch Spain with a barge pole. Big accident waiting to happen.

[bluenose851] 28/8/2007 08:38

D9SHELL

Yes I am a Birmingham fan!!

Many years of hurt but it looks like we are slowly turning the corner.

Good Post by the way

[d9shell] 27/8/2007 19:37

As a share trader I usually restrict myself to 'lurking' on the simple principle that if I've got nothing to say I say nothing - there's plenty that seem to like the sound of their own keyboard. But this thread caught my eye; because of the topic and Bluenose's near proximity, so here's my 'apporthworth.

There's something in what Tim says (225) and much in what Bluenose says (238). For sure the cheap holiday apartment market is being exposed by speculative building and over development; and serves some of them right says I. Certainly if you want a dirt cheap property for the hols. you should look east, at least there's less to lose if the crunch comes. And whilst much of the Costa Blanca has succumbed to high rises, there are pockets of more controlled development; in our case Denia. A cosmopolitan town, with commerce, a port; as well as the tourist trade. The English market has largely evaporated, as the German did before it when banking transparency meant 'black' money couldn't be hidden in Spain. But now French, other northern Europeans and even Russians are arriving and we should not forget the more affluent Spanish market, both local and from Madrid who aim for this, their closest coast, because they think it's cool in the summer!!! And there's possibly a ripple effect out of Valencia's renaissance; even talk of the mainline train arriving.

But as Bluenose says, it's quality that will out. There's a lot of 'first round' development that sounds fine on paper but at 400,000 euros + is long overdue for upgrading but it seems there's little incentive to do the work, so properties sit around for a long time. But there's the opportunity. We spent last winter in Dorset (perverse I know) agonising over whether to go back but after a few weeks back in Denia we couldn't find any reason why we would do that - grown up boys, no grandchildren etc., so looked across the valley and found a major do-up project which should get under way soon.

So as the share-boys say FWIW, IMHO, DYOR ad nauseum. But my view is there's enough diversity to sustain the quality end of the Spanish housing market, after all, however cheap other places seem, this coast will always be a do-able drive from Paris, Basel, Hamburg etc., etc..

PS - Bluenose, if you read this, do you get your moniker from being a Birmingham City fan?

[bluenose851] 27/8/2007 11:24

OK senor.....will do

Beunos dias

[waldron] 27/8/2007 11:08

bluenose

feel free to post here from time to time

despite it being a lost leader

and no doubt falling on deaf ears.

but never say never.

good luck and enjoy

[bluenose851] 27/8/2007 10:56

i work in property here so dont forget me should u be looking soon!!!

[waldron] 27/8/2007 10:35

no, in France,so my languages
are like mixed salade.

extended family learning spanish and tends therefore to
visit Spanish speaking countries.



Spain, Morocco,Cuba, Dominican Republic,Chile et al.


always returning with view of buying a casa or finca

[bluenose851] 27/8/2007 10:28

Do you live in Morocco?