Invista Share Discussion Threads

[skyship] 20/9/2011 08:19

Could be a buying opportunity if they decide to delist - see final para:

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OUTLOOK

It remains the case, as stated in Invista's announcement of 7 December 2010, that ongoing discussions with third parties in relation to the realisation of value from a number of specific assets could realise value at a discount to net asset value and that cash proceeds ultimately returned to shareholders may be at a discount to net asset value as at 30 June 2011. Future capital distributions to shareholders are largely contingent on further asset sales (in particular Invista's interests in IREIF and IREOF). It is not currently clear that acceptable offers (compared with holding the interests) will be forthcoming.

Taking stock of the above, there is the clear continued possibility that the market environment for the execution of asset sales (in the sense of accepting the best price currently available) does not maximise the Company's ability to realise value for shareholders and is not consistent with the interests of shareholders and that therefore it is not clear that the remaining asset sales processes will achieve prices which will be acceptable to the Company. In that event, recognising further that shareholders will not wish the Company to sell assets at any price, a realistic possibility will be to execute the strategy over a longer time frame and for the time being to continue to own the remaining balance sheet assets and potentially the associated fund management capability.

However, given the reducing scale of operations of the Company going forward, the Board is to consider cancelling its AIM admission at an appropriate time and expects to put forward proposals to shareholders in this regard in due course.

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[scburbs] 19/9/2011 19:15

Results tommorrow. Surely they must have made some progress on selling the rest of the assets such as Big Orange Self Storage.

"Invista Real Estate Investment Management Holdings plc will announce interim results for the six months ended 30th June 2011 on Tuesday 20th September 2011."

[scburbs] 15/9/2011 10:49

AlanJI,

My view is they have retained the management contract with an instruction to sell the properties. They will get a reduced fees for this, but what they should have done is asked for an incentive fee if they perform well (i.e. achieve above book value), something similar to their revised IERE management agreement.

Whether they have done this is an unknown and I am only speculating that they are being retained to sell, but as the owner is Kaupthing this seems like a given!

[alanji] 15/9/2011 09:16

The interesting point is that Invista is still being paid management fees, albeit at a reduced rate. We know that the large managemant contracts have been terminated (with compensation). In my calculations of residual value I had only included 1pps for the value of IREIM (excluding Lloyds compensation) but I now think it is likely to be a good bit more than this.
Any views?

[scburbs] 14/9/2011 20:37

Lending bank have taken over ownership of the French Celsius assets (in the books at nil). IREIM gets a token €250k payment plus appear to retain the management contract with the reduced terms undisclosed.

"The Company today announces that it has completed the sale of its entire interest in Celsius European Holdings S.À.R.L ("Celsius") to Sjavarutvegssjoourinn ehf (the "Buyer") for a price of EUR4, being paid in cash at completion. The Buyer is a subsidiary of Kaupthing Bank hf.

...

Under the IMA, IREIM managed £81 million of assets as at 31 December 2010 and during the 12 month period ending 31 December 2010 earned revenues of EUR800,000. Following the sale of the shareholding in Celsius, IREIM will receive an upfront payment of EUR250,000 to vary the IMA, including a reduced fee basis, to manage the Celsius assets."

[horndean eagle] 14/8/2011 18:16

Sunday Times reporting Schroders and Duncan Owen are going to take over the IFD contract. Hopefully we get a decent payoff for early termination. Glad to see us getting rid of Owen a few of his team without having to pay him off. Its really disgusting to see how the sheer incompetence of INRE management in not disposing of the fund management business early has left us totally out of pocket.

[hugepants] 21/7/2011 13:04

Surely Weiss must be expecting at least 20p back on liquidation.

[alanji] 21/7/2011 10:39

Good to see (rns today) Weiss have increased their holding. I was about to top up yesterday at 14p when the offer jumped to 16p (now 17p) so they may be still buying.

[praipus] 21/7/2011 10:36

Weiss Asset Management topping up



Track the rest of their holdings with charts in post 3 of the following thread:

[alanji] 08/7/2011 10:16

Huge Pants (and others interested)
You are correct in saying the shares are in many ways now more attractive. nav now is nearly all down to the value one places on the two limited partnerships IREOF and IREIF, about which little info is available.
My current guesstimate of realisable value is 20 to 25p

[hugepants] 07/7/2011 21:01

Or is one to assume the remaining assets are worth less than book value?

[hugepants] 07/7/2011 19:59

The market makers can't count. Surely INRE is more of a buy now than it was pre-cash return.

ie. the share price before the cash return was 31p. Lets say NAV was 40p.
So discount to NAV = 22.5%.

They return 18p per share cash. So new NAV is 22p. Current share price is 14.25p.
Current discount to NAV = 35%. To maintain the 22.5% discount the share price should be 17p.

If you assume pre cash return NAV was 38p then discount to NAV was 18.5%.
Discount to NAV now = 28.75%

If you assume pre cash return NAV was 42p then discount to NAV was 26%.
Discount to NAV now = 40%


Keep an eye on NSN who are returning a chunk of cash shortly. I bet the market makers screw up the new share price after the cash return.

[skyship] 07/7/2011 14:42

A nice round 550k just traded @ 14p - made up of c20 automatic trades.

[alanji] 05/7/2011 16:07

Woops - and there was me thinking www.architectural-review.com and hoping for some further info. Any suggestions anyone? Google brings up a lot of suggestions but ploughing through them.........

[horndean eagle] 05/7/2011 15:51

annual report

[alanji] 05/7/2011 15:37

What is "the AR", please?

[hugepants] 05/7/2011 13:47

what would you guess to be the liquidation value from here Eagle?

[horndean eagle] 05/7/2011 13:39

Look in the AR for further details on the funds. One has no gearing. The other has relatively modest gearing. Write downs should be modest on any disposal.

[skyship] 05/7/2011 13:18

Now now you lot - all of you are above such BB badinage...

Bit of a disconnect here. ADVFN chart showing 13.75p , but the share price = 14p-15.5p.

They could still be cheap, but unable to assess the value of the crucial holdings in IREIF & IREOF.....

[badtime] 05/7/2011 10:40

Erm i was speaking clearly SIR!

[praipus] 05/7/2011 09:09

lol sorry I thought you were on about the dividend, please speak clearly in future! Dont worry about the bid offer hold for the liquidation IMHO.

[badtime] 04/7/2011 22:54

the sell at 15p

[praipus] 04/7/2011 22:22

hmm 18p!!!! Last week 29/6/2011 via Selftrade one of the few theyve paid on time.