Segro Share Discussion Threads

[zangdook] 30/12/2009 14:30

jonwig
Yes, the FT says the total debt was £120m, so it adds up.

[scburbs] 30/12/2009 10:17

Luckily SGRO have already done the work for us (page 12 of the attached acquisition document).

If values are flat across 2009 then combined NAV is 485p. If they are down 5% it is 440p and 10% equates to 395p.

[scburbs] 30/12/2009 10:11

SGRO's year end NAV is going to be very interesting. The uplift on the BXTN assets is likely to be eyewatering (with Colliers predicting asset values back to Jan 2009 levels and BXTN reported a massive fall in H1 2009). Remember SGRO purchased at a significant discount to the BXTN valuations which have proven to be the absolutely trough of the market.

[jonwig] 30/12/2009 08:45

Z, I haven't checked the exact situation, but they state that the Gross Asset value (GAV) is £174m - ie. £87m for SGRO. If debt attached to the property is £60m, the Net Asset Value (NAV) will be £27m.

[zangdook] 30/12/2009 07:46

News. Disposal.

I must be missing something here. SGRO's 50% is worth £87m and produces £5.65m rent, and it's been sold for £26.9m?

[scburbs] 04/12/2009 12:26

This recent disposal is a great example of what a good deal the Brixton acquisition was.

"The sale price of Great Western Industrial Park represents a 10% premium over the book value at June 2009 after allowing for the capital expenditure to be incurred in connection with the GeoPost pre-let, and also a 34% increase over the implied valuation at the time of the offer to acquire Brixton."

[scburbs] 04/12/2009 10:41

I am back in here. SGRO look like they have bought BXTN at a significant discount to the bottom of a market that has now bounced strongly.

"Eight months' of yield compression for prime UK commercial property assets have reversed around 40% of the investment yield lost since 2007. In Cushman & Wakefield's December Business Briefing on the UK property investment market (its 'prime yield report'), the company says that strong demand and supply shortages forced a further 38 basis point yield fall in November.

...

Yields in the industrial market are now down to their lowest since August 2008 as bidding becomes increasingly aggressive. UK funds are dominating a market which is currently seeing a much anticipated improvement in the occupier market with the availability of grade A space falling. This in turn is increasing demand for secondary industrial assets."

[damanko] 17/11/2009 16:25

Seems good to me. Just contacted my SIPP provider, to ask whether I can buy some of the new bonds in my SIPP.

I'm looking at it this way: It's November 2009. Base rate is 0.5%. Savings accounts are paying bloody awful rates (obviously).

Where else can I put (say) 10K, receive 6.75% income, paid twice a year? And receive another 20% gratis, thanks to the upfront tax relief. And then get my initial capital back.

I don't like the phrase "No-brainer", but I'm struggling for a better one right now......

[zangdook] 17/11/2009 16:12

Yes, I was forgetting the debt. Market seems a little sniffy at first though.

[jonwig] 17/11/2009 16:07

Maturity and rate are excellent value for the company.
They do have issues with Brixton debt, and this is a great help!

[zangdook] 17/11/2009 16:03

Hm. Taking on more debt, for vague reasons. Are they going shopping again?

[hectorp] 07/11/2009 15:28

Tipped in Shares mag, along with Land Secs. 'BUY'.
But they have recovered a very great deal in recent months.
Whats the upside?

[james111] 06/11/2009 07:59

what a great rns this morning , a sale for £110million at a price 34% higher than the valuation at the time they took Brixton ,with more to come,
All I say is bring it on!

[scburbs] 08/9/2009 13:34

I am not holding at the moment, but this looks pretty positive news to me. BXTN had a large part of its portfolio in Park Royal.

"ING Real Estate Investment Management has completed the £41m purchase of Powergate Industrial Estate in Park Royal, NW10, at an initial yield of just under 7%.

...

The property was marketed at a yield of 8% in July but interest from investors, driven by its good location and strong tenant covenants, helped drive the price to around 100bp higher.

The 310,451 sq ft park comprises 13 units from 6,800 to 119,000 sq ft and is let to occupiers including retailer Sainsbury's and data centre operators Telecity UK and Iron Mountain."

Source: EGi

[ydderf] 06/9/2009 12:43

Isn't this what happened to Brixton?



I think they might have remained independent without the hedges.

What a mess - difficult to be bullish, there must be better property speculations, surely.....?

[martincc] 26/8/2009 14:45

Agree, I wouldn't have accepted the offer for longer dated bonds.

I had shares in BXTN, and also the 30dec2010 EBX1 bond.
Just checked back, bought at 72.15p on 7th May, so being redeemed this early at par is great. I see paying the accrued interest to date too.

Am intending to hold the SGRO shares, think they got a good deal with the BXTN t/over.

[scburbs] 26/8/2009 12:37

That's a pretty low acceptance on the discounted bond offer (for the longer dated notes). This is illustrative of how sentiment has changed massively.

Previously these notes looked like a large bad debt risk (given a falling property market) with a coupon no where near sufficient to compensate for the bad debt risk.

Now the bad debt risk has shrunk they look like a reasonably safe income return at a significant premium compared to current base rates and, therefore, noteholders are not going to accept a significantly discounted offer.

[explorer88] 24/8/2009 09:02

o/t IERE just breaking out from 20p to 60p :-)

(IERE NAV > 100p)

[das3] 24/8/2009 08:39

Chart looks good. Anyone have a handle on the NAV here?

[frizsand] 17/8/2009 08:51

Distressed commercial property sales rise

By Daniel Thomas, Property Correspondent

Published: August 17 2009 03:00 | Last updated: August 17 2009 03:00

The number of "distressed" commercial properties coming to the market rose in every region in the world in the second quarter, with the UK in particular seeing a rise in interest in property sold by owners experiencing problems.

According to a study today by the Royal Institution of Chartered Surveyors (Rics), more than three- quarters of the 27 countries surveyed saw a rise in distressed property sales in the second quarter compared with three months earlier.

This rise came despite generally low interest rates, which have provided some support for landlords facing financial difficulties, as well as help by some governments to banks lending to the sector.

Rics said that low interest rates had so far limited the problems, and predicted that falling rents and rising corporate bankruptcies were likely to further increase the incidence of distressed properties in the coming quarters...

[swiftnick] 14/8/2009 23:56

Extraordinary run. Five weeks ago I bought some of these as a long term investment. Now I'm wondering whether or not to bank a 50% profit.

[das3] 14/8/2009 08:48

I hope some of you out there are enjoying this :-)))

[typo56] 07/8/2009 17:14

Anticipating a comment about the closing auction I'll say that I think the volume may be due, at least in part, to the increased FTSE index weighting which takes effect from Monday.

[rafieh] 07/8/2009 09:07

The inevitable profit taking, albeit at low volumes. Short term holders leaving.