Caledonian Share Discussion Threads

[spob] 07/2/2018 08:39

yes sure

patience to be rewarded, lots of hidden value

what the company quotes as NAV per share is nowhere near to the actual hidden value due to accounting rules

[alaneagle] 07/2/2018 08:21

Spob That would be nice but it might take a liitle longer to unleash the hidden value from the developments. They won't accelerate that programme until the cash is in the bank.

[spob] 07/2/2018 07:26

i'd say nearer to 400 than 300p

[alaneagle] 06/2/2018 21:18

By my counting it takes the Nav to about 240p after tax. but what about the other undervalued assets? The resultant acceleration in developments will probably push the Nav through 300p two years from now.

Who was the recent buyer?

[spob] 05/2/2018 07:07

Proposed sale of St Margaret's House, Edinburgh

Caledonian Trust, the Edinburgh-based property investment holding and development company, announces that, on 2 February 2018, it entered into an agreement to sell St Margaret's House, 151 London Road, Edinburgh ("St Margaret's" or the "Property") for a cash consideration of £15.0 million (exclusive of VAT) (the "Consideration") to Drum Property Group Limited ("Drum" or the "Purchaser"), an established and award-winning Scottish-based property development and investment company (the "Proposed Disposal").



St Margaret's is the Company's largest property development and located in Edinburgh, approximately one mile from the Parliament and Princes Street and adjacent to Meadowbank Stadium. The existing building is a 92,000ft2 multi-storey building that is currently fully let out with the main tenants being Edinburgh Palette, a registered charity, and the Registrars of Scotland. The Company has planning permission in principle (PPP) at St Margaret's for a 231,000ft2 mixed-use development of residential and/or student accommodation, a hotel, offices and other commercial space, together with parking for 225 cars.



The Consideration which would be payable under the Proposed Disposal is significantly above the book value of £5.0 million which was attributed to St Margaret's as at 30 June 2017 in the last audited accounts published by the Company. For the year ended 30 June 2017 St Margaret's generated gross rental income of £158,717 for the Company and an operating profit of £138,919. The Company also incurred a valuation gain of £500,000 on St Margaret's in the year ended 30 June 2017.



Under the terms of the missives entered into on 2 February 2018 by Caledonian Trust and Drum completion of the Proposed Disposal is conditional on the Purchaser obtaining, inter alia, detailed planning permission and all other consents to their entire satisfaction for a mixed used development of student and residential accommodation. It is anticipated that it will take up to 18 months for the conditions of the missives including detailed planning permission to be obtained and completion of the Proposed Disposal to take place.



The agreement contains a long stop date for the Purchaser obtaining all the necessary consents to their entire satisfaction of 18 months from the conclusion of the missives, such long stop date being capable of extension in certain specified circumstances.



Under the terms of the signed agreement the Company has the potential to receive additional cash consideration should the planning permission process result in the development comprising additional student bedrooms and/or additional housing units. Based on the discussions that the Board of Caledonian Trust has held to date with the Purchaser it is not envisaged that there will be any material change to the overall gross value of the development or any material change to the housing mix as a result of the planning permission process. As such the Board of Caledonian Trust believe it is unlikely that any additional consideration will be received over and above the £15.0 million which will be payable on completion of the Proposed Disposal.



The Company intends to use the net proceeds from the Proposed Disposal to provide funding to accelerate the Company's existing property development programme, re-invest into new property developments, repay certain existing debt and provide general working capital.



The Company will release further announcements on the Proposed Disposal at the appropriate time.



Douglas Lowe, Chairman and CEO of Caledonian Trust, commented:

"We are delighted to enter into this agreement with Drum Property Group, a successful and award-winning property company in Scotland, for the sale of St Margaret's for a cash figure that is significantly in excess of our net book value and the last independent valuation undertaken on the site. The development is in a prime location in Edinburgh for student accommodation and affordable housing. Having owned St Margaret's since 1988 we are pleased that Drum Property, with their expertise and resources, will become the new owners of the St Margaret's site once the Proposed Disposal has completed. The net cash proceeds from the Proposed Disposal will, when received on completion, significantly strengthen the Group's balance sheet and provide funding to enable the Company to accelerate the Group's existing property development programme."

[cjohn] 21/11/2017 08:10

Hi Profdoc, I helped the poor old MM out by selling down some of my large position at around 1.50.

best regards and thanks for the explanatory post.

[profdoc] 17/11/2017 09:22

Hi CJohn,
My guess is that they can't get more out of the MM. Sometimes it difficult to buy even 3,000.
Another guess: the MM took a risk in agreeing to sell so many at £1.95 because he/she then had to wait for sellers at £1.50 - £1.60 to get the shares in stock.
If our enthusiastic buyer wanted say 50,000 the MM might just say no because they don't have that much on their books, and are not confident of getting hold of them - unless. of course, the price went to £2.50 - £3.00

[cjohn] 16/11/2017 11:23

36k sterling more or less.

Hi Profdoc,

If they were really sure, wouldn't they have bought more?

[profdoc] 10/11/2017 09:20

Intriguing - why would someone pay £1.95 simply in order to get a large volume of shares in the bag quickly (large for Caledonian that is)? Why not build a holding slowly? What does this person know that we don't know?

[picnic] 09/11/2017 12:41

18794@195p just gone through delayed from 9.02

[spob] 09/11/2017 12:39

perhaps someone has put in a big buy order

[cjohn] 09/11/2017 11:37

Thank you for the detail, PICNIC.

I note the sharp increae in the share price this morning. Is there any special reason for that? Or is it just that they're ridiculously under-valued?

[picnic] 09/11/2017 11:29

looks like they have finally got the 2 semis built (43a and 43b brunstane road south)and on the market(Knight Frank)
Each for £445k or more.
Maybe they can get a move on with their other projects now?

[profdoc] 26/6/2017 09:49

Still neglected - oh well.

[rhomboid] 23/6/2017 19:44

Sold today as there was a buyer around & I wanted to up my AVG holding, 30%+ in 3 months but I suspect I've left loads on the table🙄

[rhomboid] 01/6/2017 16:25

Well no ones falling asleep today , has anyone been tipping it somewhere?

[profdoc] 03/4/2017 11:08

Hi Rhomboid

After a number of conversations my conclusion is that both directors do not want to work through another property downturn. I cannot be completely certain, but my impression is that the current plots will either be sold as-is or, more likely, built on and then sold. Cash will accumulate. It will be paid out in dividends until there is little left. But this process will take time. Edinburgh has only just got going again. The directors are quite slow at realising value but they will get there in the end - hopefully most of the sales will take place in the run-up to the next boom.
Why the "premium" label - can't we open this up?

Glen

[rhomboid] 01/4/2017 19:45

Hi profdoc
Can't argue with the scale of undervaluation here, my concern is how the upside is unlocked, do you have a sense for where Mr Lowe is intending to steer the company as he's now an octogenarian?

[rhomboid] 30/3/2017 16:47

Well I managed to buy some at 94p , but this is ridiculously illiquid, I got filled for 2k & then the price popped up into the close. I'll buy more when everyone falls asleep again ..

[papy02] 20/2/2017 09:25

Any views on why the drop on fri? I didn't view the rns at that dire? Does the delay on the 2 semis knock on to other things maybe?

[spob] 16/2/2017 10:15

Hopefully no management buyout or cheap bid to steal that value from us.

[cjohn] 15/2/2017 09:16

Yes, and pre-Brexit nerves created a truly spectacular buying opportunity. Despite the rise since then, these are still significantly undervalued.