Would certainly be happy with 67p - then up my position in ASLI - the next golden apple to fall... |
Yep - that's commendable Managed to quickly reverse my small profit take without losing too much |
This is the counter party: |
The rumoured £350m bid level from PE was IIRC about 63p If this is for almost all then likely to be above that level My best guess it's about 67p |
Explains the recent office sale - IMO these discussions been ongoing since before the last NAV d/g. Could come relatively quickly now. |
65p and some surely... |
65 pence if we are lucky...... |
"abrdn Property Income Trust Limited (“API” or the “Company”;) notes the recent press speculation and confirms that it is in advanced discussions with funds managed by GoldenTree Asset Management LP for the sale of the entire share capital of abrdn Property Holdings Limited (“APH”), a wholly-owned subsidiary of API.
Any sale would involve the disposal of the Company’s entire investment property portfolio, with the exception of its interest in the land at Far Ralia.
There can be no certainty that any binding sale agreement will be entered into, nor as to the terms on which any transaction may occur. API has not received any offer in respect of the issued share capital of API."
Not convinced "Advanced discussions" ties with not having received any offer - clearly the price is known.
Just the junky Far Ralia they don't want. |
Nice swift response. |
Nice bump Just took a little profit at 58.6 |
A very sudden spike UP. From 57p to 58.7p in a matter of minutes...
A leak of something good perhaps. |
I expect that LMP were brutal in their valuations when marking down non core assets. In any event, it's hard to compare a fully let building in Edinburgh to a half empty office in Manchester, particularly when we don't know the yield achieved for either sale. |
Hidden in LMPs announcement this morning about an acquisition was this
"Separately, LMP has sold a further office asset in Edinburgh for £6.0 million. It is let to HSBC for a further five years' term certain and was acquired through the CTPT takeover. LMP has now sold 14 of the 16 non core CTPT assets at an average of 18% above original underwrite values"
Demonstrates that with patience value can be realised. |
So if the share merger had gone through then this asset would still likely have been sold of It might be the bottom of the market in terms of rate cycle, but office, particularly regional offices haven't bottomed yet, that's a structural change that will take 5-7 years to play out - just as retail did |
Rates probably about 35-40% of passing rent Service charge likely c£5-7 psf So add that all up and you're likely looking at a negative net operating income asset The more relevant question is what it's sold for psf, what capex needed to go in and what return there would be on that, eg what IRR did API give up by selling Against that forgone IRR, if we actually had a recession you could see the current asset value fall 50% - it's basically a development rather than an investment asset so much more volatile |
The NOI delta with the asset sold is likely positive |
Business rates for empty space will have been a big negative for API.
I'd still liked to have seen the rent that it was pulling in though.
Can't help but think API shareholders would have been better off with the all share merger they turned down, rather than wind down at the bottom of the market, alongside associated costs.
I'm in for the break-up, obviously, but - even now - I wouldn't be averse to a resurrection of an all share merger if the numbers stack up. |
At 42% occupancy the yields not that important, the net operating income is going be very low after rates/utilities on void space Value psf more relevant Either way; it's a problem that's now gone |
At 2023 interims, Princess St was valued at £4-£6m with 38% occupancy
At year end, it was valued at £4-6m with 42% occupancy
It's now been sold for £4.3m so quite a discount.
It is one of the few properties that API have that has a very low % occupancy rate - albeit the upper floors of an old building. |
it would have been useful if API had said what the exit yield was on the sale.
I wonder why they didn't do that? |
The sale of this property must be seen in the context of the overall sale of the portfolio.
Yes the value was marked down and that would take account of the vacancy rate but to shift an office asset with a high vacancy rate at a further very modest discount looks a very good deal to me.
The June NAV was over 73p so if what looks like one of your poorest assets can be sold at a further small discount this does point to 70p or very close for the whole portfolio.......Not including bulk buy discount!!??? |
Ps, although the sale itself wasn't too bad when I saw the headline, I was hoping for something a bit more substantial. |
Sky The vacancy rate was known at previous valuation and already heavily discounted. |
 9/8/24
"Two asset sales completed during the quarter (as previously reported) totaling £13.2 million and a further two assets are under offer for sale. As noted above, the Board is also assessing the potential for selling most of the rest of the portfolio in a single transaction. It is likely that such a sale, were it to take place, would be at a discount to the NAV reflecting the value of a more immediate return of capital and the reduction of risk associated with individual sales over a longer period. There can be no certainty that a portfolio sale can be achieved on acceptable terms. The Board will keep shareholders informed."
Well it looks like we've had our two additional sales.
With industrials making up a large part of the portfolio I would want these sold to an industry buyer (not a VC fund)at a price at or close or at NAV.
A substantial cash return could be made and the remainder sold at a better prices than in a job lot.
As someone once said "no you don't always get what you want"
(with Q3 drawing to a close we are still eligible for a 1p dividend in November) |
Register for Free to get streaming real-time quotes, interactive charts, live options flow, and more.
Hot Features
Premium
