|Property Recycling Group
||EPS - Basic
||Market Cap (m)
|Real Estate Investment & Services
Real-Time news about Property Rec. (London Stock Exchange): 0 recent articles
|fairdeal2008: Thought I would start a list of undervalued property companies (recognising that recently a few have gone on to achieve substantial share price recoveries).
1. the name of the company;
2. the EPIC;
3. three or four clear bullet points explaining why the company is undervalued and deserves a re-rate.
|9461dick: From Hardman & Co January newsletter
Property Recycling Group has placed its Stanton, Suffolk distribution site on the market through Savills. The agents appear to be suggesting a possible sale value of in the region of £9m, compared to the £1m book value. This suggests a possible profit, if a sale is achieved, worth 22p a share. We would caution that valuing a site of this nature (93 acres with B8 permission for a major distribution depot) is far from straightforward. Also, putting a property on the market is by no means the same thing as selling it. However, the current share price is only 32p.Investors should be hugely encouraged by this. Also, Property Recycling Group has appointed J M Finn Capital Markets as its NOMAD. The announcement has unfortunately done nothing to stem the weakness in the shares, which we think is probably due to clients of the previous NOMAD selling. The shares have now halved from their mid-2006 peak and are trading significantly so far below their probable real asset value that they really stand out as a value proposition even in the hard hit property sector. Book asset value is 32.4p, but this figure is very historic and almost certainly a considerable understatement. There are several interesting points on individual properties that could benefit from further information. First is the Stanton site, where Ikea had an option to purchase that it allowed to lapse at end-December. There are very few new sites in Britain with the appropriate planning permission that are capable of hosting a major distribution base, but this is one of them. It is an old WW2 airbase, is situated close to the A143 and was purchased in 1997 for just over £0.7m. It is zoned for commercial and industrial use, and covers 93 acres. Ikea had taken out its option many years ago when property prices were considerably lower than they are now, and the fact that the option has expired unexercised should lead to a significant increase in value for this site. This property now has B8 planning approval for a 1.2m sq. ft. distribution centre. The eventual buyer will have to find approximately £2m to fund section 106 off-site highway improvements. Another site of great interest is the 44 acre property at Hensby near Huntingdon. This is zoned commercial and industrial and has a waste management licence for composting, a business that is hugely popular at the moment. The site is let and producing £260,000 p.a., but is only two years off a rent review. It was purchased for £1.8m - or £41,000 an acre. It is worth a great deal more now, even in the current difficult market for property, and the value will leap once more on a favourable rent review|
|energyi: (From a thread on GEI- anyone interested in US property here?):
QUOTE (Rudi @ Dec 28 2007, 01:21 AM)
Although I agree that the builders may be a leading indicator for direction,
I don't agree that they will move together in the way you are suggesting with that chart.
The chart shows the history of how they HAVE moved together in the past.
Look, I do agree that House prices will be more "sticky" to the downside. We are seeing that already, I think. But so long as the builder stocks remain under severe downwards pressure it should make sense to stay away from buying property. And even if there is a bounce which turns into a move breaking the downtrend, I still think you will have another 6-12 months before UK property hits bottom.
I watched how well this bellwether worked in the UK, and then used HK property developer share price movements to help me time my aggressive move into Hong Kong property, just under one year ago. I will remain learn, andwatch for signs of a breakdown in that indicator.
Here's the cycle from another thread:
I think the US builders may bottom in 2008 or 2009, after a sharp fall*
...and the UK builders maybe a year later. I would then be alert for a buying opportunity within 12 months of that bottom.
- - -
Here's an update of the CTX/Centex chart for the last ten years
It is not impossible that we have seen the lows already.
But the 18 1/3 year cycle would suggest a low next year (2008) or maybe 2009.|
|gavis: An article in a local newspaper today that Ikea have withdrawn plans to build their distribution centre at PROP's Stanton site. Therefore they have not taken up their option to purchase the site. I thought PROP might have issued an RNS today regarding this.
I though that Ikea taking up their option may be a spark for the share price to start moving in the right direction.
May not be too bad news for PROP in the long run as I am sure they will have other options for the site, but short term IMO it will not help the share price.|
Thanks for posting the above articles.
As regards the Ipswich waterfront £500m facelift,would be interesting in what capacity PROP are involved (some future land redevelepment deal or just an advisory role) if any.
At least PROP under Paul Rackham's property and business building experience and contacts,are on the prowl to sign brownfield/land redevelopment deals,I think it was mentioned that they wanted ten redevelopments to be on the go,at any one time,as apposed to four on the go at present.
It should bode well for the share price,as and when any news is released in the public domain.It makes you think a deal must be on the horizon,considering its been quiet of late.|
Property Recycling share price data is direct from the London Stock Exchange