"Deloitte returning to the office" needs reading in context - they exited 250,000 sq ft, now adding back 70,000 sq ft.
Can bet the 70,000 is on a better deal too. |
Just posted an article on Deloitte returning to the office two years after abandoning them in the commercial property thread if anyone is interested... |
Indeed, but vacancy rate not great/seemingly going the wrong direction, and the 10-year moving out. I'm with you - cheap - but granted there's a bear case too. |
Almost 10% yield now - transactions seem to be picking up in the London office market as well. THeyve had no difficulty refinancing either.
The SPV structure also mitigates risk, and they have hotel and student accommodation holdings trading well for which there would be good investor demand should they need to sell.
THeir offices are generally good quality and well located with good transport links. Debt is uncomfortable now but rates are widely expected to fall over the medium term. Cheap as chips (I may have said that at a price 50% higher though....!). |
10% yields not so uncommon tho - eg SEIT, GSF (12%!), GCP (nearly), NESF. That's not counting the winder-uppers, which I'm sure holders will be hoping for 15%+ pa on (eg ADIG, API, GABI, VSL).
Think CLI being tarnished by both the US offices implosion (which could have years to run) and the wholly predictable RGL train wreck.
CLI is no RGL, but where will the price settle.. |
Closing in on a 10% yield here extraordinary |
Not sure if/when to average CLI - SERE also looks very decent & have a subscale holding.
As many have pointed out - there's been no more director buying, only the gift of very low price options. |
10year gilt yields have spiked today from 3.93% to 4.08% and certainly not helping the real estate sector with LAND off 3.4% and the sector softer across the board |
Jeez - seem to be piercing through it! |
Hopefully these will bounce off the double bottom:
free stock charts from uk.advfn.com |
ghhghh - they granted themselves massive options a few days ago - no need for them to lay out cash; just con shareholders with free options! |
Surprised zero director buying, implies they are inside on something? |
It's falling now against a stronger sector this week. |
9.2% yield now and a 66% discount to NAV. Certainly a big chunk of the fall is warranted given the significant increase in interest charges and one can't ignore the increasing vacancies in UK which don't seem to being addressed by planned disposals as they largely targeted at Germany. |
Not come across this before:
"(2) PURCHASE NOTICE
If either the local planning authority or the Secretary of State refuses permission to develop
land or grants it subject to conditions, the owner may claim that they can neither put the land
to a reasonably beneficial use in its existing state nor can they render the land capable of a
reasonably beneficial use by the carrying out of any development which has been or would
be permitted. In these circumstances, the owner may serve a purchase notice on the
Council in whose area the land is situated. This notice
will require the Council to purchase their interest in the land in accordance with the
provisions of Part VI of the Town and Country Planning Act 1990." |
See the Decision Notice 21/03/24 |
Any links, strath? and thanks |
9 Prescot Street - Change of use turned down by Tower Hamlets council. |
XD. 5.35p payable 2nd May. |
Agree, surely a tender offer or buyout by the majority shareholder is in the pipeline. |
Seems absolutely no advantage to the family having this listed and trading down at a 60%+ discount.
Buy it in OR sell it on. Then the trustees can diversify instead of having all their cash tied up in office properties. |
@m_kerr some of the vacancy is development but its the metric that i always look for in REITs and for most its pretty fragile then i look at leases on breaks/expires 12mths ahead. Yes there was time where that was seen as a positive on the reversion and probably still is in industrials but not in retail and offices. Even the odd ones who tell you they've let something above ERV fail to declare that the ERV has been hammered down over last few years furthermore you never hear about all the other lets below ERV or done with a hefty rent free period or capex contribution.
At least here there has to be a chance that the family will take it out in the end. |
Noticed Uk vacancy now up to about 16% which is a worry given that these assets nowadays absorb large amounts of capital, not including being on the hook for business rates. |
Happy to sit on it here. You'd struggle to see the catalyst for a rerating atm tho.
Take the yield until things improve. |
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