Cls Share Discussion Threads

[m_kerr] 03/4/2024 08:53

Yes SERE does seem a valuation anomaly and they've had no problem refinancing either (their assets are are in France. Germany and NED for those that don't know). Yields are generally lower in France and Germany with a lower cost of borrowing.

France and Germany accounts for approx 55% here.

[spectoacc] 03/4/2024 08:39

True :) Also, quality offices will always find tenants. And we're not in as bad a position as the US.

[cwa1] 03/4/2024 08:33

Specto, of course, you're correct in that respect BUT, for me, the important thing is the tide MAY be starting to turn a little bit. Instead of further disposals there are mild signs that things are, slowly, moving in the opposite direction. So perhaps a bottom may have been found in the offices market. I naturally confess I have my rose tinteds on ;-)

It's certainly better than hearing that Deloitte have dumoed even MORE offices...

[skyship] 03/4/2024 08:28

Posted this on the EBOX thread this morning. OK, CLI not logistics, but the main crux of the matter is that Euro rates are not UK rates!

========================================================

Excellent refinancing news from SERE today. Direct read across to EBOX:

Schroder European Real Estate Investment Trust plc, the Company investing in European growth cities and regions, is pleased to announce that it has completed the refinancing of a €8.6 million loan with the existing lender Saar LB, secured against its Rennes logistics investment.

The new five year facility is based on a margin of 1.6%, a slight increase from the existing 1.4% margin and is due to expire on 26 March 2029. The total interest cost has been fixed at 4.3% being the five year euro swap rate (c. 2.7%) plus 1.6% margin...................

.................


Raphael Berdot, Lead Investment Manager for France at Schroder Real Estate Investment Management Limited, commented:

"The lending appetite for well located, institutional quality logistics remains strong. With competitive margins and swap rates falling, the overall debt cost remains accretive when compared to the current asset valuation yield of c.6%. The availability of debt on competitive terms gives support to current values and liquidity."

[spectoacc] 03/4/2024 08:25

"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.

[cwa1] 03/4/2024 08:22

Just posted an article on Deloitte returning to the office two years after abandoning them in the commercial property thread if anyone is interested...

[spectoacc] 03/4/2024 06:53

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.

[m_kerr] 02/4/2024 21:10

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....!).

[spectoacc] 02/4/2024 20:48

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..

[nickrl] 02/4/2024 16:55

Closing in on a 10% yield here extraordinary

[spectoacc] 02/4/2024 15:55

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.

[wapping67] 02/4/2024 15:53

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

[skyship] 02/4/2024 14:03

Jeez - seem to be piercing through it!

[skyship] 28/3/2024 16:42

Hopefully these will bounce off the double bottom:


free stock charts from uk.advfn.com

[skyship] 28/3/2024 16:36

ghhghh - they granted themselves massive options a few days ago - no need for them to lay out cash; just con shareholders with free options!

[ghhghh] 28/3/2024 14:54

Surprised zero director buying, implies they are inside on something?

[essentialinvestor] 22/3/2024 23:31

It's falling now against a stronger sector this week.

[nickrl] 22/3/2024 22:30

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.

[spectoacc] 22/3/2024 09:05

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."

[strathroyal] 22/3/2024 09:00

See the Decision Notice 21/03/24

[ammons] 21/3/2024 17:34

Any links, strath? and thanks

[strathroyal] 21/3/2024 17:18

9 Prescot Street - Change of use turned down by Tower Hamlets council.

[skyship] 21/3/2024 07:42

XD. 5.35p payable 2nd May.

[m_kerr] 16/3/2024 17:08

Agree, surely a tender offer or buyout by the majority shareholder is in the pipeline.