Creo Medical Share Discussion Threads

[ljdabc] 02/12/2008 11:29

The broker has been terrible. However this stock remains substantially undervalued and is oversold. The portfolio comprises fully let revenue generating assets, with further acquisitions in the pipeline. The firm has also a low level of gearing and facilities fixed until end 2010. With their 4 years on the ground experience, the pipeline for further expansion is in place.

Medium to long term this is a solid investment, particurlalrly at this heavily discounted price. If the assets were all sold off tomorrow, worst case scenario would be no less than £6 per share and that's being really pessimistic.

Totally oversold, which is a shame for now, but it will come back.

[lbo] 26/11/2008 18:09

China cuts interest rates : China's central bank has cut interest rates to 5.58% from 6.66%, representing the fourth cut in ten weeks. The deposit rate was also lowered, falling to 2.52% from 3.60% and the changes will come into effect as of tomorrow. The cut in lending rate was the largest since October 1997, while the reduction in the deposit rate was the biggest since June 1999.
This will lend support to a 4 trillion yuan spending plan and is good news for the global economic demand, with China alone representing
27% of global growth last year.

[lbo] 26/11/2008 17:58

China Real Estate Opportunities (CREO) has announced that it has acquired a
7.21% interest in RREEF China Commercial Trust (RREEF CCT), a Hong Kong-listed
Real Estate Investment Trust (REIT). The average price paid for the stake was
HKD2.58 per share through on-market purchases. As at June 2008, RREEF CCT
had a net asset value (NAV) of HKD6.04 per share. This purchase therefore
represents a 57.3% discount to NAV. RREEF CCT listed on the Hong Kong Stock Exchange in June 2007 and currently owns an international grade A office and retail complex in the Chaoyang District of Beijing. The property, Beijing Gateway Plaza, is a strongly performing commercial real estate asset of approximately 130,000 square metres, with occupancy of over 95%, and is consistent with CREO's long-term investment and operating philosophy. The individual asset has a gross property value of HKD8.56 per share (HKD3.99 bn or £347.0m).

CREO recently announced that it had entered into a call option agreement to
acquire up to a 25.65% stake in RREEF CCT to be exercised on January 12th 2009
at a price of HKD3.25 per share. It is not yet clear whether CREO intends to fully exercise that option or whether this first purchase means that it will exercise less of the other option, given that it is struck at a higher price.
CREO is currently trading at 210p versus its June 30th NAV of 974p. That NAV was
calculated based on the prevailing sterling/renminbi exchange rate at that time (£1= 13.6559 RMB). Since then, the RMB has appreciated 24.6% against sterling (£1 = 10.2909 RMB). Simply applying the current exchange rate to the last stated NAV implies a NAV today of 1214p. As such, the stock is trading at an 83% discount to its NAV.

[lbo] 26/11/2008 17:19

CREO has announced the acquisition of a stake of up to 32.9% in a Hong Kong listed real estate investment trust (REIT), RREEF China Commercial Trust. This move should immediately enhance underlying net asset value and earnings and adds Beijing offices to the group's investment portfolio. The REIT's sole asset is Beijing Gateway Plaza, a grade A office and retail complex located in Beijing's Chaoyang District. The 130,000m2 property is over 95% occupied and appears to be a good fit with CREO's investment strategy.


2008 Strong third quarter
The shares have been hard hit by a recent shift in sentiment towards the prospects for South-East Asia's economies, but this was not reflected in Q3 trading. The period saw 10-50% growth in office rents on lease renewals and new lettings, on a portfolio between 92-97% let. CREO's retail properties saw on average a 16% increase in rents, from 21 renewals or new lettings. The group's current valuation, at a steep 81% NAV discount, reflects a pessimistic outlook that appears out of proportion to the strong performance of a high-quality portfolio.

[crimeprotection1] 25/11/2008 19:53

Why the big sells? Societe Generale dumping?

[lbo] 20/11/2008 10:36

The November trading statement said that CREO had boosted office rents by between 10pc and 50pc since July this year. Its retail division had completed 21 lease renewals and new leases over the period and these achieved rent increase of up to 40pc while averaging 16pc growth. Occupancy rates at its three Shanghai properties range between 92pc and 97pc.

According to an analyst's report from Libertas Capital on the same day, 75pc of CREO properties are generating yields of 8-9pc when leases are renewed with the cost of debt around 7.5pc.

"The portfolio was valued at £760m in June last but after currency movements this is now £850m. This should take the net asset value per share from £9.74 at June 30 to £11 putting CREO shares on an 85pc discount (to its share price at the time)."

Two days later as the share price recovered slightly the discount had reduced to 81pc according to Edison investment research, which provides CREO with research services. It argued that the valuation appeared anomalous "relative to positive trading, Q3 rents uplift and further NAV in the pipeline".

Edison also pointed to the appreciation of the Chinese yen against sterling

For euro investors the sterling weakness is not as much of a carrot as it is for the British but a lot of that weakness may already be factored into the share price. The recent improvement in the share price may also have factored in the Chinese government's investment plan.

Nevertheless, over the long term the Chinese appear to have the human and financial resources to sustain growth. This augurs well for the share price as does CREO's pipeline of office, retail and warehousing projects in Shanghai and Beijing.

[djalan] 19/11/2008 21:04

With the DOW crashing I can´t see LBO surviving

no advice intended

[crimeprotection1] 18/11/2008 21:06

Maybe so, but I'm happy with a penny rise each day in this climate!

[djalan] 18/11/2008 21:03

LBO
On your head be it

[lbo] 10/11/2008 14:56

Strong rental boost for Treasury in China

[lbo] 10/11/2008 09:46

Chinese market Surges 7.3% on economic stimulus plan

[lbo] 06/11/2008 00:10

Irish China property group outperforms


China Real Estate Opportunities (CREO), the China-focussed property company backed by Treasury Holdings, today delivered an update on its trading since July, saying it has continued to outperform the market.

It says that CREO's income producing assets, which represent 75pc of its total portfolio, have continued to perform strongly in the third quarter.

CREO said its three-year rollover on leases, which is standard practice in China, has enabled the company to continue to drive income growth in the short-to-medium term.

The AIM-listed group achieved between 10pc and 50pc rental income growth from lease renewals and new leases since July.

Occupancy rates in the investment assets remain strong: Central Plaza is 92pc occupied, City Center is 95pc occupied and Treasury Building is 97pc occupied.

Finally, across its retail estate, CREO has completed 21 lease renewals and new leases since July 1st; it has achieved up to 40pc increase in rents on individual transactions and an average of over 16pc growth from letting transactions in the period.

[pillion] 05/11/2008 22:23

This doesn't look good for China

US shares plummet after election





Dow on a downer ?

[lbo] 05/11/2008 20:55

China Real Estate Opportunities (CREO) has issued an update on its trading since July 1st 2008. It says that CREO's income producing assets, which represent 75% of its total portfolio, have continued to perform strongly in Q3. Three-year rollover on leases, which is standard practice in China, has enabled the company to continue to drive income growth in the short-to-medium term. CREO achieved between 10% and 50% rental income growth from lease renewals and new leases since July 1st. Occupancy rates in the investment assets remain strong: Central Plaza is 92% occupied, City Center is 95% occupied and Treasury Building is 97% occupied. Finally, across its retail estate, CREO has completed 21 lease renewals and new leases since July 1st; it has achieved up to 40% increase in rents on individual transactions and an average of over 16% growth from letting transactions in the period. CREO's development programme has continued to make progress throughout the period. Construction on Beijing Logistics Park is due to start in November 2008. Completion of this development is expected in 2009, and the company has already received strong leasing enquiries. At Central Plaza, the office tower refurbishment work is on schedule for completion before the end of 2008 while the remainder of the refurbishment programme is on track for completion in 2009. At City Center, short-term refurbishment work will be completed in Q1 2009. On financing, the company has said that the maturity profile of CREO loans secured against its investment properties remains unchanged with all existing loans locked in until Q3 2010. In addition, CREO has recently secured a new development loan facility from DBS Bank in relation to the construction of Beijing Logistics Park. The net asset value per share of CREO as of June 30th was 974p and since then, the Chinese renminbi has continued to appreciate. Based on current exchange rates, we estimate that the net asset value is now close to 1,180p. As such, we believe the current share price offers a significant investment opportunity.

[lbo] 30/8/2008 13:55

Irish China property group NAV up 17pc

[lbo] 29/8/2008 14:18

Its time to short then! Seems the bubble is bursting in the short term for CREO.

China Real Estate Opportunities sees more growth


The revalution of the group's property portfolio, which included the recent acquisition of two additional sites at Tangdao Bay, saw diluted net assets per share increase by 16.8 percent to 9.74 pounds over the six months to end-June. The value of the group's property portfolio increased by 18 percent to 712 million pounds, helped in part by the strength of the Chinese currency in the period.

Pre-tax profit for the period amounted to 15 million pounds, compared with a loss of 3.1 million for the period from December 5, 2006 to end-June 2007.

[hieronymous1] 23/7/2008 23:14

Investors rush to join the emerging property boom

By Laura Cohn

Published: July 21 2008 03:00 | Last updated: July 21 2008 03:00

[lbo] 17/7/2008 09:45

Chinese growth still above 10%

[lbo] 06/5/2008 13:49

Treasury Holdings-backed firm taps into Chinese growth

[lbo] 01/2/2008 15:09

CREO portfolio valued at £635m
Barry O'Halloran

The value of the properties owned by the Treasury Holdings-backed China Real Estate Opportunities (CREO) has grown by more than 12 per cent to £635.36 million since its reflotation last July, according to the latest valuation of the company's portfolio

CREO said yesterday a recent independent survey found that the aggregate gross value for the properties, located in Shanghai, Beijing and Qingdao, was £635.36 million on December 31st. The company added that when it relaunched on London's Alternative Investment Market last July, the same properties were worth £566 million, based on a valuation carried out the previous month.

The increase in the gross value of the company's portfolio over the period was close to £70 million, indicating growth of more than 12 per cent.

Landsbanki analyst Charlie Murphy predicted in November that the company's net asset value (NAV) would grow by about 30 per cent a year from its flotation in July to the end of 2010. He said that its NAV would increase from £7.68 a share, its flotation price, to about £17 by December 2010.

Meanwhile, Treasury Holdings announced yesterday that it was apppointing Richard David, managing director of its China subsidiary, to its board.

Mr David, former head of Australian giant Macquarie's Chinese real estate operations joined Treasury Holdings China in August. The company manages CREO.

Property players Richard Barrett and John Ronan own Treasury Holdings, which in turn has a 58 per cent stake in Real Estate Opportunities, which is a 16.5 per cent sharholder in CREO.

Mr Barrett and Mr Ronan directly own 19 per cent of CREO between them.

[lbo] 22/1/2008 12:05

Creo pays €19m for sites at Olympics location
Barry O'Halloran

Treasury Holdings-backed China Real Estate Opportunities (Creo) is buying two sites with a Chinese company at the location of this year's Olympic sailing events near Shanghai for €19 million.

Creo said yesterday that it had bought two sites at Tangdao Bay, Qingdao, in partnership with Shanghai Industrial Investment Corporation (SIIC), the real estate investment arm of the Shanghai municipal government.

The sites are next to its existing property at Tangdao Bay, which will host the sailing events in the Beijing Olympic Games.

Creo said it was paying £14 million sterling (€18.8 million) for its 50 per cent interest in the two sites.

"The plan is to develop the three sites as a single integrated project, with the completed development having a total gross floor area of 430,167sq m (4.6 million sq ft), comprising residential, retail and hotel components, with an estimated completion value in excess of £360 million," Creo said in a statement.

London-listed Real Estate Opportunities (Reo) owns 15.9 per cent of Creo. Treasury Holdings, owned by developers Johnny Ronan and Richard Barrett, controls more than 50 per cent of Reo. Creo is also listed in London.

The company owns commercial properties in Shanghai, including the Treasury Building, which it bought from Reo in July for £16.1 million in cash and more than £20 million in debts.

The group raised more than €380 million when it listed on London's Alternative Investment Market (AIM) last summer. At the time it said it intended using the cash to buy commercial properties in Shanghai and Beijing.

Richard David, managing director of Treasury Holdings China, Creo's investment manager, said the deal reaffirmed the company's commitment to both SIIC and the Qingdao market.

[lbo] 29/11/2007 14:54

Landsbanki came out with a buy note on CREO on the 21st of November and expect to see big NAV increases (30%) by year end. Circa £10 NAV versus the IPO NAV of £7.68

It bases its bullishness on the fact that CREO's "refurbishment/repositioning" programme will drive the income from its portfolio up by 10pc "irrespective of the underlying strength of the property market".

[ragandboneman] 21/11/2007 13:02

Interesting volume and price movement today. Mind you any movement on volume and price would be interesting on this after months of stupor.

[lbo] 05/9/2007 08:39

They have just bought a million shares at £7.09. They must be confident