The Local Shopping Reit Share Discussion Threads

[tiltonboy] 16/11/2016 09:06

The seller is back!

[skyship] 16/11/2016 08:02

Specto - thnx for that - hadn't seen Pugh Auctions before. 4 small lots at a minimum total price of £225k.

I don't think you've posted here recently, so may not be aware of all the useful info sourced for us by other posters, especially Strathroyal. Most sales in this sector are via Acuitus and Alsopps. The activity in the sector and the successful sales by the Canadian pension fund who bought half of the LSR portfolio two years ago, show there is a good market for these high yielding tertiary props.

[spectoacc] 15/11/2016 15:58

Just spotted these 4 LSR units in auction for 8th Dec - don't hold your breath! Must be 5 years since I sold out of LSR but before I sound too clever - took a hefty loss at the time.

hxxp://www.pugh-auctions.com/Auction/Leeds/20161208

Sandwich shop bringing in £4.8k, Hairdressers bringing in £5,750, Another £7.5k, and a café bringing in £7.5k.

My experience of these small lots is that legals, searches, fees etc are disproportionate, and banks will rarely lend. So cash buyers, willing to take a chance on a single tenant, yields 10-20% (which isn't enough when your tenant does a flit, leaves the place stripped out, and has given you a false home address).

[ntv] 14/11/2016 10:31

selling individual properties through local agents or auctions or to owner occupiers seems the best way forward if the current strategy hasn't worked. refinancing will help reduce interest costs as will removing layers of management reduce cost base.
looking at all the other head costs will probably help as well.
hopefully within a few months plus we will get dividend news

[gfrae] 14/11/2016 10:21

Apologies Mr C Hoop !

[onwego] 14/11/2016 09:30

FT: "Shutters come down on the UK high street"
Flurry of shop closures floods the retail property market with excess space



"...A concern for landlords is that rates of persistent vacancy — outlets that remain empty for a year or longer — have risen fast. In 2013, 23 per cent of vacant stores had been unoccupied for 12 months or more — today that has more than doubled to 47 per cent..."

[cockerhoop] 14/11/2016 08:41

Gfrae, Mr Hoop to you :-)

[hillofwad] 14/11/2016 08:34

In other words they wont sell many individual proeprties as it means that the costly running of the portfolio doesnt make it worth their whileie preserving the staus quo and their remuneration packages

[cockerhoop] 14/11/2016 08:05

They told shareholders in the Interim report:

During the last six months we have been in detailed negotiations with a party for the sale of the majority of the Company's remaining property assets. However, these discussions have not led to a transaction. Our overall aim remains to execute the investment strategy adopted by shareholders in July 2013, in pursuit of which we have now sold £93.9m of property. Whilst we remain open to large portfolio transactions, we will focus on our programme of individual property sales, particularly of uncharged assets, in order to further reduce the LTV ratio of the bank facility and the Company's overall gearing. This will enhance cover over the banking covenants and unlock lower amortisation and interest margins. However, in the absence of a sale of the bulk of the properties sufficient to enable us to speedily dispose of the remainder at sensible prices, we will not continue the individual property sales programme below the level at which running the portfolio becomes unviable.

[hillofwad] 14/11/2016 08:02

Strath The question to be asked is bearing in mind the remainder of the properties have been kicking around the market for sometime why havent they sold ? Deal hungry agnets dont let opportunities slip by unless they are overpriced which speaking to a few of them confirmed

[hillofwad] 14/11/2016 07:52

Yes hes hardly bought them to make a loss I wouldnt rule out Souky raising the necessary The stock is all very bankable and maybe he has someone in mind to take out some of the stock Might be an idea to regionalise the portfolios If he wants to pay 32p for mine he can have them!!!! I think 34p is the high water mark Grahame would not have left any meat on the bone

[strathroyal] 14/11/2016 07:44

There seem to be quite a few on here prepared to accept an offer in the low to mid 30s, presumably worn down by the time the liquidation is taking.

If, as it appears the properties under Project Minard have been sold by the new owners, I'll assume they made a profit on their purchase which was said at the time by the LSR directors to have maintained shareholder value. So that would have been above 40p so surely a sale of the remaining properties could achieve a similar result.

[skyship] 14/11/2016 07:30

32p! Surely unlikely that Soukup will accept a price lower than the 34p at which he bought his first tranche. He doesn't have the firepower to make a bid himself; but if somehow he got the backing to do so then takeover rules state he can't bid lower than his top price of 34p.

So, sorry Hillofwad, you're just going to have to accept a larger wad to add to that mountain of yours!

[hillofwad] 14/11/2016 06:07

Soukop,s plan looks fairly simple remove the various unnecessary layers of costs basically at the moment there are 3 parties with their hands in the pot ,Directors- Internos -Allsops =all just to sell a few properties . There is no news that they are at at an advanced stage of discussion with any parties There is no synergy in parcelling up an unhomogneous set of properties to sell in a package which will require a large discount to attract a sale
Sell in smaller lots or individually He certainly gets my vote Lets hope he can step up to the plate and make a full blown offer 32p will do me thanks You cant go broke making a profit!

[eeza] 13/11/2016 17:19

o/t

Oh, man.
The rant in this video is absolutely brilliant.

[skyship] 13/11/2016 17:05

maiken - exactly. If BoD/Internos come clean with a new policy to liquidate within 2yrs, I personally would stay with them. Anything less than that and it is more likely that Soukup gets my vote.

[tiltonboy] 13/11/2016 14:05

maiken,

That is one serious holding!

I totally agree with your thoughts.

[catswhiskas] 13/11/2016 13:56

I'd look into Soukup towers and other things at Thalassa in order to make an informed decision.

[maiken] 13/11/2016 12:59

In answer to tiltonboy,together with my partner we are now up to 2.7m [3.25%],mostly bought post brexit.
[I realise I'm laying myself open to Orinocor's scorn by admitting this]
We're very sympathetic to getting rid of existing directors but need to know more of what Soukup's alternative plan to realise value is before declaring our support for him.

[tiltonboy] 13/11/2016 11:45

It would be interesting to see how many we have on here, and how many support Soukup.

There was a new buyer in the market on Friday, and it wouldn't surprise me if THAL or friends were looking to take out any loose stock. I offered mine at 34p, but it was declined...lol...

[strathroyal] 13/11/2016 10:23

Only two of Allsop's properties have Eversheds as the solicitor. Lot 127 which is on offer without a reserve and lot 131 which doesn't have a guide price. Perhaps that is Nos 2 and 3 cashing up but on this evidence I will also be backing Soukup as we are getting nowhere.

[hillofwad] 13/11/2016 06:54

hxxp://www.auction.co.uk/commercial/onlinecatalogue.asp?A=0&S=L&O=A&P=2

237 properties all of a similar ilk the majority of which will be sold on the day .prior or just after / LSR could book value reserves and I reckon 65% would go and bring this beast to rest over the next 2 or 3 auctions