The Local Shopping Reit Share Discussion Threads

[strathroyal] 12/11/2016 09:56

Turnover for Nos 2 in the yr ending 30/09/14 was just under £6m which seems to consist mainly of rental income. According to that set of accounts, East, Veitch and Faber didn't resign as directors until 7th August 2014 so the new directors wouldn't have had much time to implement their policy before the year end.

[skyship] 12/11/2016 08:28

Strath - can you perhaps see their statement in the previous year's accounts - that might confirm the earlier sales.

[skyship] 12/11/2016 07:51

Of course they actually bought c£79m of property (see below); so a lot must have been sold prior to Sept'15 if the last bit regarding the remaining is to be believed - and why not!? The rate of sale is remarkable. This means that they are effectively all cashed up to come back for the 2nd half of LSR...
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"Sale of property-holding subsidiaries

The Local Shopping REIT plc announces that it has completed the sale of two of its property-holding subsidiaries, NOS 2 Limited and NOS 3 Limited, to Farraday Limited, an investment vehicle owned by certain funds managed by Värde Partners, for a cash consideration of GBP11.2m.

Between them, the two subsidiary companies own 235 properties with a net rental income of GBP7.07m. The transaction represents an implied property sale price of GBP79.3m and the subsidiaries will take with them third party fixed rate debt totalling GBP66.7m."

[hillofwad] 12/11/2016 04:40

The irony is that the Chinese takeaways are likley to attract the owner-occupier buyer playing the yield gap beween its investment value and comercial mortgae borrowing rates Whereas the residential upper part often represents a management issue to investors th eowner occupier cna sweat the asset .Precisely the sort of stock which should be heading into an Allsopp's auction

[strathroyal] 11/11/2016 19:14

Skyship - Re my earlier post I'm not sure if I misread the amount of sales and now wonder if they have actually sold more properties than I originally suggested so I've copied out the relevent wording as it appears in the Notes to the accounts for Nos 2 Limited for others to consider.

'Since 30 September 2015 £16,018,000 of proceeds has been received relating to properties disposed of. The Directors are currently in advanced negotiations to sell properties with expected proceeds of £14,938,000. The remaining properties are planned to be disposed of at auctions in October and November 2016.'

[skyship] 11/11/2016 16:26

"I'm hoping for a 3rd party coming to the party!"

Exactly - this activity will hopefully flush out the previous reluctant buyer, or after Strath's revelations, even the Canadian pension fund returning for a second bite from a fruitful cherry...

[tiltonboy] 11/11/2016 15:17

orinocor stop being an idiot.

£40k is a good sized holding for more than an average investor.

How big are your balls!

[orinocor] 11/11/2016 15:05

skyship has definetly gone up in my estimation. It takes balls to admit, on a public forum no less, to holding so few shares.

[eeza] 11/11/2016 14:50

I wouldn't.
But don't. :-(

[orinocor] 11/11/2016 14:47

SKYSHIP11 Nov '16 - 11:59 - 1580 of 1582 0 0
At the moment my paltry 140k are headed into the THAL camp. If DIL2 & Tilts go the same way - JOB DONE!

140K. Is that all? Paltry yes and I'd be embarrassed to admit to holding such a tiny number of shares.

[gfrae] 11/11/2016 14:13

With regard to the sold portfolios. I would be interested whether they have sold off the larger more liquid properties and are now left with the chinese take-aways in back streets ?
I am looking forward to hearing LSR's response.

[tiltonboy] 11/11/2016 13:10

I'm hoping for a 3rd party coming to the party!

[skyship] 11/11/2016 11:59

eeza - I'm afraid that it does increasingly seem like that; and you've been consistent in that view...

At the moment my paltry 140k are headed into the THAL camp. If DIL2 & Tilts go the same way - JOB DONE!

[eeza] 11/11/2016 11:21

Stringing it out for as long as they can, to keep on leeching.

[hillofwad] 11/11/2016 11:00

Allsops December auction catalogue comes online tomorrow which will be stuffed full of similar stock to LSR Strange that Allsops have been appointed to sell the portfolio failed and yet to convince Internos that auction is the best route Other forces clearly at work

[onwego] 11/11/2016 10:45

@gfrae agreed re funds, don't forget THAL's market cap is only £8.30mio (and they themselves only trade on 0.37 of Book Value - doesn't exactly inspire confidence)

Old profile of Soukup in the Telegraph.

[redhill9] 11/11/2016 10:24

Thal could perhaps offer to take over LSR by a share deal 1:1 plus a little cash, say 2p per share? Thal share price currently 36/40p although it maybe unclear why anyone would want Thal shares with their recent history. The cash adjustment could be funded from LSR's cash which must be accumulating despite the high operating costs. A fanciful suggestion I know.

I think the main benefit to existing LSR shareholders of Thal's interest may be some boost to the share price by short term speculation leading up to the EGM that "something might happen" which may give us an opportunity to move on at an acceptable price. I bought yesterday and this morning at 27.8p in small tranches to add to my long term holding and am looking for a quick c.15% gain from here.

[gfrae] 11/11/2016 10:11

Not enough dosh ?

[hillofwad] 11/11/2016 09:41

Thats the price they had to pay Whateley to remove him from the equation No point in going in mobhanded unless he was off the premises Fight you over the last £ Maybe they are lining up a bidder for part of the portfolio before tabling a bid to make it more mangeable certainly worth hanging around at this level to find out

[cockerhoop] 11/11/2016 09:34

Why were THAL so keen at 34p yet seem uninterested in mopping up stock at 28p? It would seem a no brainer for them to slowly accumulate up to 29.9% while there's stock around.

[tiltonboy] 11/11/2016 09:21

The seller is playing again this morning, so obviously not keen either way!

[skyship] 11/11/2016 09:14

Strath - ahh - very interesting. Well spotted indeed. So perhaps Internos have indeed been sitting on their hands to suck out the fees...

Perhaps the Minard buyers will now bid LSR for the 2nd half, having already been so successful in selling half of the first half!

[strathroyal] 11/11/2016 08:34

Skyship - Nos 2 Limited's B/S to 30.09.15 (signed off 16/08/16)states that since 30/09/15, £16M proceeds have been received relating to property disposals and that they are in advance negotiaitions to sell properties with expected proceeds of £14.938M in October and November. The figures for Nos 3 are £1.699M and £4.191M respectively. So that's around half the portfolio disposed of, as I say a different strategy to Internos.

It also accounts for why there appeared (to me) that there were a large number of LSR properties being sold at auction as the LSR gallery which I have referred to in the past includes some Nos 2 & 3 properties.

[hillofwad] 11/11/2016 08:11

This portfolio has done the rounds and has been on the market for 2 years The portfolio is a complete hotchpotch of properties and at the overblown asking price of £90m was too big for all the likeley property company purchasers Too messy for institutional purchasers too Max lot sizess hould be around £20m to bring it to a wider audience How long do you need to have to realise the strategy has failed
Its clear that most of the properties should now be sold individually this company has been on death row for far too long

[skyship] 11/11/2016 07:36

Strath - could you elucidate on that 2nd para please.

It is interesting to look at the prospectuses (prospecti!) for both Project Minard (sold) & Project Renouvier (still in play); the LSR portfolio was pretty much split in half. We were by no means left with a rump as some gainsayers suggest. That is why I am still hopeful that the buyer in the wings may yet return...and the current action could well prompt them to now re-emerge.