The Local Shopping Reit Share Discussion Threads

[deadly] 13/4/2016 14:55

This has fallen back sharply recently, despite the promise of liquidation of assets at a premium and good news in the budget. Any reason why, apart from the director voting issues? Looking good value otherwise..

[eeza] 31/3/2016 16:11

5: Re-elect Nicholas
Vetch as a director
of the Company.
12,757,510 2,000 6,050,749 0 18,810,259

Sky, yes 32% of the total amount of shares to be polled - BUT, almost 50% of those actually cast.

His position is surely untenable, I would have thought.

Unless his skin is thicker than a Rhino's.

Obviously, No Contest !!!!

[skyship] 31/3/2016 13:06

eeza - actually looks like 32% against - but certainly DIL would seem to be anti!

Nicholas Vetch - Non-Exec Director:

Having trained as a Chartered Surveyor, Nick Vetch became Chief Executive of Edge Properties which he co-founded in 1989. In 1998 he co-founded Big Yellow Group PLC, of which he is Executive Chairman. Nick is also a non-executive director of Blue Self Storage S.L, which operates in Spain. He chairs the Audit and Remuneration Committees

[eeza] 31/3/2016 09:47

Lol !!!!!

50% vote against re-electing Vetch.

[gfrae] 17/3/2016 10:36

Presumably,directly in the case of vacant properties.
CGT changes are also beneficial to those with gains on commercial property.
Last but not least, reductions in Stamp Duty for commercial property valued at under £1.05m.
These changes taken together should make it much easier to shift the properties,particularly the smaller ones,and generally make commercial properties a much more attractive investment class.
Where else can you get yields of 5%- 10% ?

[skyship] 16/3/2016 14:41

BRC scare-mongering pays off - a great result on Business Rates for the small High Street shops. Indirectly good news for LSR.

[spittingbarrel] 09/3/2016 14:44

Thanks MRF

[my retirement fund] 09/3/2016 14:04

some info:












plenty more out there if you care to search and read about it

[spittingbarrel] 09/3/2016 13:47

Is that bullish or bearish?

[my retirement fund] 09/3/2016 13:12

Typical cup and handle formation on the chart.Feel free to laugh freely.

[8w] 03/3/2016 09:02

Thanks for info.

[gfrae] 03/3/2016 08:56

Every June from the original agreement with Internos in 2013 (from memory).

[8w] 02/3/2016 19:10

Is that June 2016 ?

[gfrae] 02/3/2016 17:15

Of course,regarding timing the "effective date" is very important sometime in June I think. After the effective date the hurdle increases by 8%. The original hurdle was 36p.
Internos receive 5% of the total return over the hurdle price ex income.

[gfrae] 02/3/2016 14:51

That would be deeply disappointing.

[my retirement fund] 01/3/2016 14:50

May wake up one morning to find the entire portfolio has been sold with 40 pence to be returned to the long suffering shareholders, that said if the price creeps above 35p by early summer I'll be surely tempted to sell

[my retirement fund] 01/3/2016 09:45

Good volume coming in. They must have sold something imo ...someone must know news leaks

[skyship] 01/3/2016 09:12

Redhill - no problem - 30th March the next official date here - that for the AGM. Good to see them break through 30p today, the day after the BRC painted a far too bleak day for the High Street!

I suspect that was timed as a lobby for the Chancellor ahead of the Budget. The High Street would obviously like more Business Rates relief.

[redhill9] 01/3/2016 08:39

Apologies for my confusing comment about expecting a RNS - I was misreading my spreadsheet and read a date for APT as being for LSR without thinking whether it made sense.

[skyship] 28/2/2016 17:55

I gather they are still concentrating on a large portfolio sale; though one or two properties are finding their way into the auctions...

[redhill9] 28/2/2016 17:44

Encouraging read Skyship, can we assume Allsops are still acting as agent for selling LSR's remaining properties do you think?

Hopefully we should get RNS from LSR tomorrow, or within a day or two at least?

[skyship] 28/2/2016 12:56

George Walker at Allsops also believes that the change in the BTL tax regime will benefit tertiary “High Street” commercial property:



The rise of buy-to-let is well documented – it’s estimated there are over 2 million private residential landlords in the UK, owning 1 in 5 of all homes – and the very British fascination with owning property still dominates many a broadsheet and blog, says George Walker, partner, Allsop commercial auctions.

“The returns on residential investment have been appealing: in 2015 year they stood at 19.5%pa, reinforcing the decision made by many high–net-worth investors to stay within the sector. Plus, there’s the seemingly perpetual history of capital growth.

The times are a-changing however, and savvy investors are finding the commercial property sector compelling. Impact of buy-to-let reforms Recent changes – in the pre and post-election Budgets and last autumn’s statement will affect the rental yields residential investors receive.

The Chancellor has reduced the level at which interest can be claimed against rent for high rate taxpayers from 45% to 20% of the interest bill on a sliding scale, starting in 2016 and ending in 2020. He has also abolished the 10% ‘Wear and Tear Allowance’ from April 2016. This second change will impact both geared and cash investors. Lastly, he has added 3% to cost of transactions for second home owners and smaller scale investors, with less than 15 units which will impact most private investors.

These changes have the cumulative effect of reducing the annual return on a residential purchase made with significant debt to a fraction of what it was, the larger the purchase the bigger the impact.

The attraction of commercial assets:

On purchase of commercial assets Stamp Duty is charged on a sliding scale starting at 1%, rising to 4% above £500,000 which is less than half equivalent cost for residential investors.

On the rental income, tax allowances for interest remains unaltered.
Commercial investors also typically enjoy long leases that place the duty of repair on the tenant, and in the majority of retail and leisure (think Pizza Express and JD Wetherspoon) lettings tenants are responsible for fitting out their own units. Plus, the average retail yield is around 6.5%, leaving the lucky owner margin enough to pay down some debt or build up a fund for the next round of auctions.

What’s the catch? You are relying on a historically difficult environment on the high street although this is again well documented and at one level easy to read. Assessing the strength of a property can be a matter of careful valuation and observation – how many shoppers are walking around with full bags? How many buyers are waiting to get a new phone or a sausage roll and a cup of tea?

Moreover the indications are that, with one in five buyers at every commercial auction being there for the first time, it may not be long before the property sector’s best-kept secret is out, and yields will fall as a result -

[skyship] 12/2/2016 17:32

Perhaps someone knew of LSR success at the recent sales. The two largest Commercial Property auction sites – Allsops & Acuitus – report successful January auctions. Hopefully LSR will have had a few lots in there:

ACUITUS:


ALLSOPS:
The UK's leading auctioneers

Allsop Commercial raised nearly £66m following their first Commercial Auction of 2016 earlier this week, reflecting a success rate of 81%. A total of 112 lots have now been sold including 16 in excess of £1m, and was our biggest February sale since 2007.

The highest value lot sold in the room was Lot 79, a substantial retail parade on a 0.8 acre site with development potential, adjoining Ruislip Manor Underground station, which sold on behalf of Receivers for £7.2m (3%), our largest lot sold under the hammer since March 2007.

Other notable lots included Lot 6 – a Tesco Express convenience store in Dunstable which sold for £565,000 (4.39%), Lot 33 – a retail parade, majority let to the Post Office, in Reading which sold for £2.01m (7.64%) Lot 78 – a public house in Hackney which sold for £1.1m (5.16%), Lot 88 – a bank & shop with consent for 7 flats in Brentwood which sold for £1.9m (4.58%), Lot 89 – a Burger King Drive-Thru & car wash in Aldershot which sold for £1.8m (6.99%), and Lot 102 – a 2.1 acre industrial site in Grimsby which sold for £1.355m (6.98%).

6 convenience store investments were sold, together with 6 bank investments, 8 betting shop investments, 6 car park investments, 7 industrial investments and 8 office investments.

Duncan Moir, Partner and Auctioneer comments;

"This sale was a great start to the year for our clients, and gives us an encouraging indication of what we might expect to see in 2016. Demand for the larger lots in the South East was very clear, with prices being pushed to levels significantly ahead of expectations.

The appetite also extended away from the South East, which helped the sale of a 15-lot portfolio across the UK on behalf of Receivers, all of which sold raising 40% more than the pre-sale estimates."