The Local Shopping Reit Share Discussion Threads

[badtime] 01/7/2016 13:03

Time to get back in me thinks

[tiltonboy] 01/7/2016 12:23

Somebody is keen to get out. My bids got quickly stuffed in!

[gfrae] 24/6/2016 09:46

Borrowing costs set to go down here,Libor is falling.

[tiltonboy] 23/6/2016 10:35

I would hope that LSR themselves will have completed their sales by now, and it may be that Damille have lent on them to expediate the sales process.

[strathroyal] 23/6/2016 10:06

Latest announcement from DIL2 which may have an effect on LSR:

hxxp://www.damilleinv.com/files/20160623%20ANN%20Proposal%20-%20Clean.pdf

[skyship] 19/6/2016 16:26

Excellent spot Strath....looks as though they are finally deciding to get on with it - about time too!

[strathroyal] 19/6/2016 15:42

LSR have also entered at least 8 properties in the Acuitus auction on the 7th July, cat nos 8, 16, 28, 50, 55, 60, 74 & 81. Anticipated receipts £3.5M+.

[tiltonboy] 17/6/2016 16:21

You tempted to put a few bids in on the portfolio SKY!

Some of the "lots" meet your yield criteria...

[skyship] 17/6/2016 16:02

Buy-to-let landlords move into shops
By: Natalie Stanton - Moneyweek
10/06/2016


In recent months, the government has been gradually chipping away at the appeal of investing in buy-to-let residential property. Hence some prospective buyers seem to be looking for alternatives, such as semi-commercial property, also known as mixed-use buildings – essentially any property that has both residential and commercial elements, such as a shop on the lower floor and a flat above.

One fifth of property investors are now considering these types of property, according to research from Mortgages for Business, a broker, more than twice as many as were doing so in November 2015.

The increased appeal of semi-commercial property is largely due to the new stamp-duty rules that came into force in April. The government introduced three percentage point surcharge on second homes and residential buy-to-lets – but commercial and semi-commercial property remains exempt.

Indeed, recent changes to commercial property rules have been more favourable to investors. In March, the government overhauled the stamp-duty regime for these buyers, charging a different rate for each band of the property’s value rather than paying a flat rate. The Treasury reckons this will lower stamp-duty bills for 90% of buyers. As a result, a buyer of a £300,000 buy-to-let property would pay £14,000 in stamp duty. But a buyer of a mixed-use property for the same amount would pay just £4,500, says The Daily Telegraph.

Commercial property has also managed to dodge another new policy that is aimed at cooling the buy-to-let market. At the moment, landlords are able to claim for interest on buy-to-let mortgage payments when they complete their tax return, allowing them to offset mortgage interest paid against rental income. But in future, higher-rate taxpayers won’t be able to make this deduction.

This will increase taxes and running costs for landlords. However, the change won’t affect individual landlords who buy mixed-use properties, who will still be able to claim tax relief on mortgage interest after the new regime is introduced in April 2017.

Of course, there are other reasons why individual investors have tended to favour residential property rather than commercial buildings. One is that commercial mortgages tend to have relatively high interest rates, compared with buy-to-let mortgages. However, if commercial property becomes a more popular choice among traditional buy-to-let investors, this could change: mainstream providers might begin to offer commercial mortgages at lower rates in order to take advantage of growing demand.

Another obstacle is that owning and renting out a second flat or house is a relatively small step for an investor who already owns their property. But stepping into commercial property for the first time may seem a bit more intimidating.

This explains why buy-to-let investors are apparently focusing on mixed-use properties, where at least the residential component is familiar, while the presence of a small commercial business means an opportunity to diversify. Of course, the big question is whether this blatant loophole in the new buy-to-let stamp-duty rules will quickly be closed if investors begin to flood in.

[tiltonboy] 16/6/2016 11:15

Is it possible to track the results on line as each lot goes through?

[tiltonboy] 16/6/2016 10:55

It would be interesting to find out the selection process in putting forward properties to auction. Also be interesting to find out if the guide price is in line with the holding value.

Looking at the available yields, I would hope that the "lots" provoke good interest, and potential for prices above guide.

[strathroyal] 15/6/2016 22:45

The catalogue for the 6th July auction at Allsop is now on line. I see that Eversheds (LSR's solicitors) are solicitors for a number of the properties of which I can see that at least 8 (cat no. 5, 60, 64, 80, 95, 125, 126 and 143) are on the LSR Gallery. Most of these consist of more than one unit of course.

Potential sale proceeds (at offer price) total around £3.25M and perhaps the most interesting is cat. no 95, offers around £1.90M which makes it one of LSR's top 8 properties by value. The blurb for this property also states that it is being sold on the instructions of a major fund manager, presumably Internos.

[holts] 26/5/2016 08:19

Dexy , problem is this shower seem particular bad at doing their job , but turkeys don't vote for Christmas either.

[leedsu36] 24/5/2016 08:27

A lot of heavyweight shareholders leaving a sinking ship and millions more to go,15p on the cards on lead up to Brexit.

[skyship] 24/5/2016 07:21

Rohkap - the continuation vote was in respect of DIL2 themselves. If subsequently they find that, say, 50% of holders want to withdraw in 2-3yrs time, then DIL2 would need to sell down their stock portfolio to pay out retiring shareholders.

Obviously they can't sell LSR in the Market; but they could look for a bidder, or another activist holder to take over the mantle.

All conjecture...

[rohkap] 23/5/2016 18:23

Haven't read the resolution but DIL2 holds 20 mil shares so wouldn't they have voted in favour of continuation? Or not allowed to vote?

[skyship] 23/5/2016 16:01

Mr Dexy - what yield did that provide?

[mr dexy] 23/5/2016 14:37

Annecdotally,

Just sold a shop ( with office above ) in Bethnal Green Road ( East London )for a shade over £500k... plenty of interested parties at that price, and no need to go through Agents, even though the street market that that particular road hosts has long seen it's glory days.

Couldn't escape the nagging feeling in the back of my mind that the general market for such properties has peaked, for now, at least.

Regards


Mr D

[tiltonboy] 23/5/2016 13:37

DIL2 will want full/good value for their holding, and hopefully will find a willing buyer for them!

[skyship] 23/5/2016 13:30

Strath - well spotted re the DIL2 Continuation Vote - see below.

Of course, should DIL2 need to divest, then their stake would give a bidder a 24% start to pick this up on the cheap - but hopefully nowhere near as cheap as they now are!

===============

"The resolution put to the Company's shareholders that, in accordance with Article 172 of the Company's Articles of Incorporation, the Company continue its business as a closed-ended investment company, did not pass. (12,916,410 votes cast in favour, 27,911,089 against and none withheld.)

In accordance with the Company's Articles, the Directors will, as soon as reasonably practicable, bring forward proposals intended to afford an opportunity for those shareholders who so wish to realise their investment in the Company (whether by liquidation, share redemptions, share repurchases or otherwise) and proceed with an orderly disposition of such part of the Company's portfolio as may be necessary to effect such proposals."

[spooky] 23/5/2016 13:28

Definitely possible, but strange that they popped this morning. They could have begun hawking the stake around at a discounted price - 25p?

[strathroyal] 23/5/2016 13:16

Could this have anything to do with the fact that DIL2 lost a continuation vote earlier this month?

[tiltonboy] 23/5/2016 10:38

Somebody has been very keen to sell, hitting multiple levels at the same time.

I've picked a few up at 25.25p, and got more to do.

[spooky] 23/5/2016 10:14

Well something happened this morning, could the potential buyer of the block of properties have finally backed out?

[deadly] 23/5/2016 10:08

Sharp fall today; any news??