The Local Shopping Reit Share Discussion Threads

[hillofwad] 27/3/2017 15:49

Lot 126. £150k guide sold £220k !!! Lot 127 guide 130k sold 172k Incredible . Begs the question why havent they been using Allsopps before !!

[hillofwad] 27/3/2017 12:20

The sale of the Corals at 5.8% in Gravesend is really pleasing They must have quite a bit of similar stock let to good covenants where there is 6-8years remaining on the lease

[hillofwad] 27/3/2017 12:04

Great results

[tiltonboy] 27/3/2017 10:54

Lot 21 goes at £582.5k on a 7.3% yield, against a 540k guide.

Looks like a good morning's work, with just a bit of dross in the afternoon session.

[ntv] 27/3/2017 10:36

TB
lot 8 sounds like a good sale

[ntv] 27/3/2017 10:35

I bought some items in an auction recently paying well above the guide price and then sold them a few days later over three times the price i paid including the fees
nice bit of fun and paid a few bills!!

[tiltonboy] 27/3/2017 10:35

Lot 8 was sold on a 5.8% yield, so hopefully a bit above book.

In the range of 500k to 1m LSR have only 18 properties with an average yield of 9.6% .

Lot 13 was sold at the top end of guide at 350k on a 7.4% yield.

[ntv] 27/3/2017 10:31

most things in auction have a low guide price to attract buyers so getting sold well above guide price is not always good
Are they selling above LSR's nett asset value after costs?
we have no idea of that

[tiltonboy] 27/3/2017 10:22

Great start with Lot 8 going for £710k v 550-575 guide.

[strathroyal] 26/3/2017 17:48

On the subject of auctions, whilst no properties appear to have been sold prior this time, Allsop have tightened up the reserves on lots 13 & 21 which may suggest that there has been some interest.

Also the lots are now shown on Pugh's website for the April auctions. LSR are interested in lots 33,59, 82 & 112. Additionally, and regarding the February auctions, lot 192 (Grimsby £20k) is now showing as sold and lot 76 (Fleetwood £75K) which was not offered at that auction and was due to be included in the April one hasn't been so it's presumably been sold. Internos doing a decent job hopefully.

[tiltonboy] 26/3/2017 09:09

The gallery appears to have been updated with some new properties.

Hopefully we get a decent result tomorrow.

[hillofwad] 25/3/2017 06:13

Jamiejark
Auctions

"with particularly strong bidding seen for lots coming forward in the £1m to £5m value range,


"demand for properties within the M25 was exceptionally strong towards the end of the year. In December, all the London lots sold and the average lot size rose to £1.4m.2

Yes the auction houses are good homes to unwind LSR's proeprties but investors increasingly are movin gtowards quality investment where yields are compressing

I dont think that is the case to £50-£400K lots up North or Scotland which are unlikely overall to achieve the book value where leases are very short with the prospect of having an empty shop to deal with

This has been evidenced by the mixed bag of results at the recent auctions. LSR have a few well located shops let to Corals in the South with shortish leases coming up at the next auction The results of these will be very telling could sell for a capital sum reflecting a net yield from anywhere from Sub 8-10%

[badtime] 24/3/2017 23:41

Second top lasts sentence should be noted as well

[jamiejark] 24/3/2017 22:59

It seems to be a growing trend that more and more buy-to-let investors are moving into the commercial auction market which should bode well for LSR over the next 12 months. Transactional volume in auctions is growing which is always the key yard stick for a healthy property market. Yields also appear to be continuing to compress.

The recent article in Property Week below seems to support this...


"The volume of investment-grade commercial property sold at auction in 2016 grew by 10% to £820m, the latest Commercial Property Auction Data (cPad) report has revealed.

The report, which was prepared by MSCI and auction house Acuitus using auction sales data from the Essential Information Group, showed that the number of lots sold last year grew sharply as well, by 33%.

The strong performance, which contrasts with the sharp drop in transaction volumes across the wider commercial market, was driven by high demand from high-net-worth investors put off the residential sector by the increasingly punitive tax regime.

Acuitus founder Richard Auterac said he expected this trend to continue to drive sales this year.

Activity in the first auctions of 2017 suggest that high-net-worth investors will remain active in the auction room - Richard Auterac

“Activity in the first auctions of 2017 suggest that high-net-worth investors will remain active in the auction room, with particularly strong bidding seen for lots coming forward in the £1m to £5m value range,” said Auterac.

“With ongoing economic and financial market uncertainty, which will undoubtedly persist over the coming 12 months, the commercial property sector is capturing investor predilection for real investment assets.

“Furthermore, the compounding of tax increases for residential buy-to-let investors is also driving large-scale investors in this sector to switch capital towards commercial real estate.”

In the immediate aftermath of the Brexit vote, investors showed little sign of being put off London.

Although the proportion of London assets sold fell, demand for properties within the M25 was exceptionally strong towards the end of the year. In December, all the London lots sold and the average lot size rose to £1.4m.

Office gains

Retail continued to dominate the auction room, but the sector’s share of transactions dipped from a long-term average of 67% to 64% last year.

Meanwhile, the office sector gained share thanks to a large number of high-value assets offered for sale, notably from institutional funds and banks looking to take advantage of strong demand from high-net-worth investors.

The office sector also recorded the biggest movement in yields, which were down 48 basis points year on year. Yields hardened across all sectors last year except leisure.

Auterac said this trend might not continue in 2017 as pricing on riskier assets came under pressure.

“Despite the evident and growing demand for commercial property among private investors, there are challenges to the market,” he said. “The current economic backdrop means that the future income of some assets will inevitably be more uncertain.

“This will be reflected in the adjusted risk assumptions of investors and therefore in the necessary pricing of such assets.”

[badtime] 11/3/2017 13:53

How the other half live ..sigh

[skyship] 11/3/2017 12:55

Hmmm - Belgian Truffles - you'll be popular back in the office on Monday!!!

[tiltonboy] 11/3/2017 12:40

In Brussels for the weekend, and just come across the number plate 1-LSR-666...I'm out of the stock on Monday!

[hillofwad] 11/3/2017 09:00

Tilts Yes Mixed bag with realistic guides Whatw edont know is whether the guide is book value e However 79 let to Shelter-they have a break clause in their lease next year and the Thomas Cook an empty shop with 2.6 years rent from Thomas Cook prices could end up anywhere Dread to think what VP values are in these towns when most recent lets are charity shops

[ntv] 11/3/2017 08:08

thanks for the DMA info
will look into it over the next couple of weeks

[tiltonboy] 09/3/2017 18:51

I will re-iterate again that I'm not a property expert, but some of those Scottish properties look really good value at guide.

Looks like Thomas Cook are paying the rent on 84 for another 2.6 years, but it appears to be a closed footwear shop at the moment, hence the low price perhaps.

[strathroyal] 09/3/2017 16:43

Acuitus auction 30/03/17, lots 10, 40, 61, 72, 78, 79, 81, 84 & 86. 7 of the properties are in Scotland, reserves £1.185M. With no Pugh auction in March, these and the Allsop lots presumably form the next cycle of property sales.

[cockerhoop] 09/3/2017 11:03

I use Idealing for DMA.

[badtime] 09/3/2017 10:38

Do you know any tilts? :)

[tiltonboy] 09/3/2017 09:46

...or get yourself a good broker!

[spectoacc] 09/3/2017 09:39

Yes to both - you want "L2 dealer". They charge about 10bps each way (so broadly comparable to GNI, unless you were on a special deal). Have found them wholly resistant to negotiating down costs, probably because there's so few retail DMA providers left.