Matrix European Real Estate Share Discussion Threads

[alanji] 02/11/2011 15:33

Cash received in Sippdeal

[zangdook] 02/11/2011 13:31

There was no mark-down on the ex-div (or whatever you call it) day, and there's a big markdown on the payment day. Does the market not understand what happened?

Cash appeared in HL.

[specuvestor] 02/11/2011 12:27

No sign of my cash yet, although the share allocation has been readjusted downwards.

[zangdook] 02/11/2011 10:14

ouch. less than 11,000 sold and nearly 10p off the price?

[geng] 02/11/2011 09:45

Anyone got their shares/cash yet - been a week now!!

[mathisvale] 02/11/2011 06:59

I am hoping that his skills mean that he can negotiate a higher selling price than anyone else. If not then why hire him.

If he can squeeze £105m out of properties, when anyone else can only get £100m, then I will happily pay him £2m for his services

[kramch] 29/10/2011 10:43

thanks Zangdook, I missed it.

"Any performance fee payable at the 7.5% rate will be capped at £1 million. In the event that an aggregate of £1 million of performance fees have been earned by Klockensteijn, the performance fee shall reduce to 3.75% of Shareholder returns in excess of the hurdle rate."

- not very clear, are they trying to say that over £1m, the rate of performance fee falls to 3.75%?

Are we paying agents commissions on top of this? Why can we not just get a good international agents to sell the properties?

I don't understand what magic Mr van der Vlist is bringing to the process?

K.

[zangdook] 29/10/2011 05:18

see the most recent rns

[kramch] 28/10/2011 16:48

zangdook, I missed the the engagement of Klockensteijn, when did this happen?

Is it 7.5 or 12.5%? As you say it seems extrordinary to pay this type of commission to sell commercial property. This sounds wrong.

K.

[zangdook] 28/10/2011 16:16

It's due next week.

[tricia51] 28/10/2011 15:58

anyone received the money yet?I haven't but my shareholdings have been reduced.

[chinahere] 28/10/2011 11:42

£2.8 million could employ something like 53 people on average UK salaries for 2 years.

[alanji] 28/10/2011 10:17

Yes, the disgusting thing is that this is simply a contract for disposing of property not for managing the company/assets. What is he actually being paid for? Instructing agents to market and sell the assets? Tricky work!!!

IERE are in the same situation and appointed a NEW manager to supervise the liquidation. However, they will replace the existing manager - and on more demanding terms than Klockensteijn. The company is actually going to save euro1.6m on fees!!!!

IERE terms:

Under the heads of terms, the Company has agreed, subject to final contract, to pay Internos a management fee of 1.25% per annum on the net asset value attributable to the Company's ordinary shareholders, subject to a minimum of €1.0 million per annum. Assuming an unchanged level of NAV, this would be approximately €1.6 million per annum lower than the management fee payable under the existing IMA with IREIM, representing a reduction of 47%.



In addition, the Company will pay Internos a realisation fee equal to 12.5% of the amount by which cash returned to ordinary shareholders exceeds €82.8 million (being the average market capitalisation in the 30 days preceding this announcement converted at the £/€ exchange rate at the close of business on 29 June 2011), compounded at 10% per annum.



In the period between signing the IMA and assuming responsibility for the day to day management of the Company, Internos will conduct a full strategic and operational review of all aspects of the Company's property portfolio, banking facilities and administrative arrangements (with a view to achieving additional cost reductions for the Company), for which it will be paid a fee of €75,000 per month.

[zangdook] 28/10/2011 01:37

cash returned to Shareholders from 25 October 2011

So that includes the cash we're about to receive, even though he had nothing to do with that. And we're still paying for management, at the same time as paying this guy. Unfortunately:

the engagement of Klockensteijn to provide consultancy services including those of Mr van der Vlist (under the terms set out above) requires (i) the approval of a majority of the independent Directors and ii) a fairness opinion in respect of such transaction from an independent adviser.

So a shareholder revolt might be difficult.

Is it so hard to sell high quality property that you have to pay a consultant £2.1m plus e405k pa just to realise NAV?

NAV 100.223m - hurdle 57.53m = 42.693m

42.693m x 7.5% = 3.201975m

3.201m - 1m @ 7.5% leaves 2.201m @ half that rate (3.75%) = 1.1m

total £2.1m

say he stretches it out for a couple of years, we're looking at around 3% of NAV, just to achieve NAV, and that's just for consultancy; there are management fees to pay for the next year and there'll be other fees associated with sales.

[dogeared] 27/10/2011 19:47

Are the " divis" taxable?

[badtime] 27/10/2011 19:45

geez..far too low a hurdle rate!

[alanji] 27/10/2011 17:55

"Under the terms of the engagement of Klockensteijn, the Company has agreed to pay an annual consultancy fee of EUR405,000 together with a performance fee equal to 7.5% of the amount by which cash returned to Shareholders from 25 October 2011 exceeds a hurdle rate of 160 pence per Share (this being GBP57.53 million of capital), increased at a rate of 5% per annum."

Am I losing the plot? Assets at 30 June were 269pps (£100.223m)

Nice work if you can get it. Shareholder revolt anyone?

[alanji] 27/10/2011 15:44

Sippdeal now showing share split.
Bid down 3p but as we are effectively getting 10pps we are actually up 7p today - roughly in line with the real estate index.

[b3842517] 27/10/2011 14:18

Should be within 5 working days

[nigelwestm] 27/10/2011 14:08

I like the idea of them paying me £2.50-plus for the shares that are being redeemed, but I want real money to replace the shares that I've given up. Does anyone know when that should appear in my account?

Otherwise I have several thousands of pounds of shares that are just going to disappear bit by bit from my account...

[b3842517] 27/10/2011 12:45

I'm still showing my original amount of shares. I wonder what would happen if I tried to sell them...

[alanji] 27/10/2011 12:42

Nothing in Sippdeal yet

[nigelwestm] 27/10/2011 12:00

Okay. I've just checked my account. I do indeed have 3.85 per cent fewer shares, but no money seems to have replaced the ones I've lost...

[zangdook] 27/10/2011 11:46

Turns out it was just Hargreaves Lansdown being unprepared. They've cut my shareholding down now. Pretty unprofessional if you ask me - having the wrong figures in my account for 3 hours or so.

[zangdook] 27/10/2011 08:26

I'm puzzled. I thought I was going to wake up with 3.85% less shares today. Am I being dim - did they do a subdivision so my 96.15 old shares became 100 new ones? Or is my broker still looking for his right sock under the pizza boxes?