Real Estate Opportunities Share Discussion Threads

[the big fella] 10/2/2011 16:05

Chaps - nice posts. I traded out of the ords for a nice 40% turn this am. I think a 600 mil equity valuation is on the low side. CULS / ZDP are a strong hold.

[jambo172] 10/2/2011 16:05

Tilton.

As a ZDP holder I am nervous that they will not secure funding to pay off the original vendors. If they do, ZDP/ CULS holders will make a fortune and ordinary holders may get their money back.
Not a good risk and reward in my very humble opinion.

[tiltonboy] 10/2/2011 15:58

Jambo,

If you were to believe some of the rampings on here and on 3aye, from those buying the Ords, then CULS and ZDP holders are going to make an astronomical amount of money. Ord holders might even double theirs...lol...

I quite like the £860m equity valuation, but would happily settle for £600m.

[jambo172] 10/2/2011 15:32

Sorry the last post has not come out well.
What it shows is that if conversion value is £500m (possible), CULS / ZDPs are worth 15p and ordinary shares 1p. For the ordinary shares to be worth current 4p price, valuation has to be £600m and CULS/ZDPs would be worth 48p.

[jambo172] 10/2/2011 15:23

The relationship between ordinary and ZDP / CULS are shown below.
This came from the company's brokers.

I think it shows that if the ordinary shares are correctly priced, the other ones are massively cheap.
Or if the CULS / ZDPs are correct, the ordinary shares are very overpricd.
Or all three are worthless, if they cannot get funding.
All in all, buying ordinary shares is madness.
IMHO of course.


BPS economic value(£m) 460 500 550 600 650 700 800
3rd party share of equity(%) 93 86 78 72 66 61 54
Recovery rate (GBp in the £)
CULS 6.3 14.7 33.9 48.0 62.2 76.3 104.5
ZDP 2.7 6.2 14.4 20.4 26.4 32.4 44.4
Value per share (GBp)
CULS 6.3 14.7 33.9 48.0 62.2 76.3 104.5
ZDPs 6.3 14.7 33.9 48.0 62.1 76.2 104.5
Ords 0.4 1.0 2.8 3.9 5.1 6.2 8.5
Upside per share(%)
CULS -3 +126 +422 +640 +856 +1074 +1508
ZDPs -3 +126 +421 +638 +856 +1073 +1507
Ords -88 -73 -28 +2 +32 +62 +123

[lbo] 10/2/2011 12:58

The next stage is for REO to raise money for the project, which is expected to cost £5.5 billion

[badtime] 10/2/2011 10:06

cant c the 5bn property contract in tht posting

[flyingswan] 10/2/2011 09:59

UK commercial property maintains positive growth in January



The CB Richard Ellis UK Monthly Index produced a total return of 0.7% and capital growth of 0.2% in January 2011.

This comes after a stronger than anticipated finish to 2010, with annual returns of 16.1% and capital growth of 8.9%, the highest since 2006. Central London continued to outperform in January, with City offices seeing stronger results than the West End.

January UK Monthly Index snapshot:

• All property values rose by 0.2% over the month, producing total returns of 0.7%.
• Industrial return rebounded in January, and they were the top performing sector, with capital growth of 0.3% and total returns of 0.8%. This was helped by a strong income return.
• All retail sub-sectors recorded positive capital growth in January, albeit at a slower rate than in December. Retail warehouses outperformed with capital growth of 0.3%, whilst shopping centres and shops saw a marginal 0.1% increase this month.
• Rest of UK offices saw a further correction in values after a poor 4th quarter of 2010, and were the only market sub-sector to record negative total returns over the month at -0.1%.
• Overall offices saw positive capital growth of 0.2%, thanks to another strong month for Central London.
• All Property rental values fell marginally over the month, down by 0.1%....

[badtime] 10/2/2011 09:52

lol..yes i can y..looked at the culd when 6p and dithered ..sigh

[tiltonboy] 10/2/2011 09:50

badtime,

Bought just over a million. On the basis that the CULS should be 12x the Ords, I just hope the Ords hold up at this price...lol...

[badtime] 10/2/2011 09:46

wd on the culs tilts if memory serves me right u bought a fair number at 4p

[tiltonboy] 10/2/2011 09:40

Flying Swan,

Where is the property contract for £5bn? Please point me in the right direction.

[flyingswan] 10/2/2011 09:22

I just thought I would remind people that REO can be put in an ISA.

With a property contract worth over 5 Billion Pounds.

I an expecting the share price to reflect this, over the coming weeks.

[flyingswan] 10/2/2011 08:28

Real Estate Opportunities REO Chart #ADVFN $£1

[flyingswan] 10/2/2011 08:01

I am expecting an interesting day.

[jp5000] 10/2/2011 06:33

predevelopment architects link under works section full presentation

[flyingswan] 09/2/2011 22:14

Images of the Battersea Power Station development can be found at:

ftp://Press:[e-mail]

[tiltonboy] 09/2/2011 22:09

crafty,

Those two classes take a far higher stake in Battersea than the Ords, and as there are less shares around than the Ords, the multiplier comes out at around 12x. In addition, as part of the re-capitalisation, CULS and ZDP holders also dilute the remaining Ordinary capital.

[the big fella] 09/2/2011 21:36

I have both now. Bought a few ords today for a trade. Been holding the CULS for a while and they are nicely in the money.

[craftyspeculator] 09/2/2011 21:35

Tiltonboy can u explain where u get the 12x multiple from? Just interested...

[tiltonboy] 09/2/2011 20:43

Unless you are short-term punter, why buy the Ords. After the equitisation of the CULS and Zero's into Battersea equity, the aforementioned should trade at 12x the Ord price.

[lbo] 09/2/2011 20:42

Déjà vu! This site has always had planning of various types yet nobody gets any further as the sums never add up

Planning Milestone for Battersea
Publication Date: 15-NOV-2006



Last night Wandsworth Council gave consent to six planning applications and one variation concerning detailed designs for the Battersea Power Station site.

These consents, representing a total area of 4.5 million sq ft mean that, for the first time, the project can now move forward towards the construction stage and leasing programme.

Victor Hwang, President of Parkview International said yesterday, "Today is an important day for the Battersea Power Station project. We have appreciated the unwavering support of Wandsworth Council who have seen us through in excess of 50 submissions since 1996.

[the big fella] 09/2/2011 20:03

I don't think many saw the news due to the timing of the release. Bearing in mind the performance of some wildly speculative penny shares today, if the heard turn up tomorrow this could do anything. This should be fun tomorrow.

[northster2] 09/2/2011 18:57

will take a small punt on these in the morning, been luking since nov and with this news they could become a takeover target

[broadwood] 09/2/2011 17:47

Shares in Real Estate Opportunities (REO) jumped after the communities and local government secretary Eric Pickles approved the company's plans to build flats, offices and shops on the site of the former Battersea Power Station in London.