Delek Glbl Share Discussion Threads

[kenny] 15/5/2008 14:12

Hopefully the overhang of shares will be cleared in the near future. In the interim, below is a recent article about their NCP development potential:
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Delek plots redevelopment for 40 NCP car parks
09.05.08

Fifty planning applications for additional parking and resi, offices, retail and hotels in pipeline

By Rachel Connolly

Delek Global Real Estate is working on 50 planning applications for 40 of its NCP car parks to develop up to 2.5m sq ft of residential, office, retail and hotel space over the next five years.

Since Delek bought the car park portfolio in 2003, it claims its value has increased by 67% to £1bn and it plans to increase its value by adding development on the estate.

It has 50 properties that have planning consent granted, or where it is working with a developer on submitting an application.

It also plans to add 4,000 parking spaces on 10 of the car parks.

Its development plans feature a car park near Liverpool's Albert Dock, sold to an unnamed developer that plans to redevelop the site.

In Cardiff, three NCP car parks are to be redeveloped into a 967,000 sq ft shopping centre with the St David's Partnership. To service the St David's 2 shopping centre, NCP will build and operate one large car park.

Delek will have 128 NCP car parks once the car parks sale in Cardiff have been agreed. Of the total, 14 are underground.

Sites in Bristol, Birmingham and Leeds are also being considered for sale or redevelopment.

Nadav Zohar, chief operating officer of Delek, said: 'We are normally reactive and wait for developers to approach us. But now we are being more proactive.

'Out of 15 sites in Bristol, Birmingham and Leeds, five have a high potential, and we are working with architects to submit plans. We have specific developers in mind.

'We want to work with areas that have big regeneration plans like Bristol, Birmingham and Leeds.

'We're also keeping an eye on London. We must ensure that we work with NCP to make sure they get their fair share,' he added.

Delek is working with DTZ and CB Richard Ellis to assess the portfolio and take plans to the next level.

Between 40 and 50 car parks are being assessed but more could be added. Delek is focusing on developing surface car parks into multistorey parking or residential or commercial space with parking managed by NCP.

'Some sites are in the finalising survey stage, others are in talks with architects and others are drawing up plans,' added Zohar.
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[peter peters] 13/5/2008 15:02

Big volume; clearly good 2 way business.

[kenny] 09/4/2008 08:11

Further good news!! Today's announcement below confirms that Jelmoli accepts that DGRE and the other buyers do not have to complete on the property transaction. So what remains is a claim for compensation and here, as the company has stated, I do not think Jelmoli can claim against the shareholders of the Swiss company set up to make the purchase. Their only potential is against the assets of the Swiss company purchaser and DGRE has already provided fully against the monies advanced to the Swiss company it and others set up to make the purchase. So we should see the DGRE share price recover further as the market digests this information.
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Zurich, 09.04.2008 07:00

Jelmoli Initiates Process to Create two Independent, Separately-Listed Companies

Division into two independent industry leaders

Separately-listed Real Estate and Investment companies

Removal of dual class share structure in Real Estate company

Plan subject to shareholder approvals

Project completion expected in early 2009


Jelmoli announced today its intention to split the Company into two independent, publicly-traded entities: a Real Estate company and an Investment company. Both entities would be listed on the Swiss Stock Exchange (SWX) and would rank among the leading players in Switzerland in their respective businesses. The intended separation is the outcome of the strategic review, the initiation of which was announced at the extraordinary shareholders meeting as at December 7, 2007.
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[nickcduk] 02/4/2008 09:04

Kenny - Thanks for the article. Would explain why it has generated a few small buys this morning. Its probably market makers marking it up and am not sure if the rise will last. Glad to see its getting a little coverage. Property sector had a very strong day yesterday and the discrepancy between DGRE and it is getting ever wider. I would expect that to correct itself in due course.

[kenny] 02/4/2008 08:56

Here's a copy of the full text from today's Times:

Tiddler to watch

Delek Global Real Estate, the property group that owns NCP car parks, will hold an analyst meeting today. Its shares, off ¾p at 84p, are only 39 per cent of net asset value on fears of falling valuations. They provide a 13 per cent dividend yield. Panmure Gordon, the house broker, has a price target of 152p. A move to the main list is on the cards.

[nickcduk] 02/4/2008 08:28

Cerrito - Thanks for the info. Hopefully its true and generates a little buying interest in the stock. Fingers crossed.

[cerrito] 02/4/2008 08:16

Times

Tempus: Invensys (worth buying on weakness), Whitbread (a solid buy), AG Barr (hold) - Deal of the day: Speedy Hire (new finance director buys 19,800 shares at 752.3 pence each) - Tiddler to watch: Delek Global Real Estate (analysts' meeting today)

[kenny] 01/4/2008 11:48

Very difficult to buy shares in DGRE in the last few days - as usual the market makers are giving preference to their pals. Ordinary punters like me are just cannon fodder and are having to pay over the odds to get any sort of quantity.

Still, I imagine DGRE will be tipped somewhere over the next three months - it is still by far the cheapest property company; even ignoring the massive yeild which is paid out of net rental income (adjusting for derivitive costs being charged to capital).

Any long term investor - that's 5 years plus - will, I belive, be richly rewarded on any purchase at a price below 100p. Existing holders will benefit from holding their nerve as we are due a shake out between here and 100p.

As always do your own research, DYOR, and do not take anything I say as advice - I hold a large number of shares in DGRE and for all you know I may be a "pump and dump" artist. (I am not intending to sell any DGRE because I view this as an excellent high yeilder to build up my pension pot and have only invested funds I do not need to access for about 10 years).

[nickcduk] 31/3/2008 11:39

Continuing to make nice progress today. Large seller is either cleared or taking a break for the time being. Small trickle of buys is pushing it up nicely higher. I would hope the management are undertaking presentations across the city to get the story across. That will generate more interest and take us back closer to where the shares should be trading. I think fair value for DGRE in current market conditions is about 130p.

[kenny] 29/3/2008 18:49

nickcduk - you may be right. Was speaking to a couple of people in commercial property yesterday evening and they are predicting very large falls in commercial property values in 2008.

[nickcduk] 28/3/2008 14:31

A lot quieter today than yesterday. A large buyer waiting in the wings around the 80p level. Seller doesn't seem to be aggressively pursuing their selling. Maybe they have taken time to reflect on what were a pretty good set of results. A few chunky trades of 100k have gone through around 80p. Hoping for a little more action before the end of the day.

Kenny - I do see the merits of your argument for holding DGRE for the long term. In a couple of years it should quite easily have doubled from current levels. That isn't likely to happen until sentiment changes markedly. In the meantime I feel trading in and out of the position is likely to be much more profitable. The re-rating in property won't be led by the likes of DGRE. It will be by the larger players. Smaller companies such as DGRE will lag the move during which time it should be possible to jump on board for the ride. Thats the approach I will be likely taking.

[skyship] 28/3/2008 08:09

Kenny - yes, I saw the provision, however the potential liability is not the sub's capital, it is the likely damages should Jelmoli succeed in their action. In my opinion the Board are being necessarily disingenuous as part of the bluff. Still, I do hope it comes out right for DGRE shareholders. If Jelmoli are vanquished and retire from the scene, the share price could well be 50% higher!

Incidentally - surely with 85% of the issued capital in one party's hands, there is no way they qualify for a Main Board listing. Or have the rules changed?

[nickcduk] 27/3/2008 20:56

I salute you Kenny for reading through the entire announcement and picking up on the Jelmoli comments at note 19. It does help clarify matters and is positive. Hoping for some follow through over the coming sessions and weeks. Getting some new investors on board to replace those stale bulls should help no end.

[kenny] 27/3/2008 16:27

nickduk - I do not think the stock is being shorted. Rather this was subscribed to at 200p in March 2007 by various property funds. Since then, the large number of redemptions those funds have faced have made them forced sellers - despite the fact they are taking large losses on shares they have held for less than a year. It is easier and quicker for them to sell shares rather than actual property.

They do not care about selling DGRE shares for stupidly low prices as it is their unit holders in the property funds who suffer the losses upon redemption.

Crazy situation but a sort of once in a decade opportunity to buy assets at a large discount to their current value - I am not complaining to strongly about the situation!

[jonwig] 27/3/2008 16:18

Actually, Kenny, I recognise this now - I looked at it late last year. What drives the low valuation is, maybe, the fact that it's an Israeli company.

Now before you say "So, what?" it's an unfortunate fact that few (any?) London-listed Israeli companies have served their investors well recently, and most have been downright dogs.

This is nothing to do with race, politics, etc. but just the way it is. Apart from the litigation aspect, which seems to be in hand, the LtV ratio of 68% might also be a factor in the market's rating.

[nickcduk] 27/3/2008 16:05

Ive got my position in CFD on margin so have a relatively short time frame. Happy to trade in and out of the position as choppy markets will create plenty of opportunities to get back in. Seller still hasn't been exhausted. About 2m shares traded today, that equates to about 5% of the outstanding free float. Surely they cannot have much more left. That is unless the stock is being aggressively shorted. Even with the Jelmoli litigation that would be a very risky strategy around current levels.

[jonwig] 27/3/2008 15:57

Thanks Kenny - will have a look and maybe ask some questions soon!

[kenny] 27/3/2008 15:45

Well nickcduk, with the size of investment I had made before today and with the further wedge I invested today, after studying the results, I am sure any investor would be very keen to ensure they had "covered all the bases", as far as is practical.

I should also point out that I have also previously undertaken a lot of research about the Israeli billionaire behind DGRE who also has two other companies quoted on the Israeli stock exchange, namely, Delek Group and Delek Real Estate and also a US gas station company quoted in the US, called Delek US. He also has unquoted interests including an oil and gas explorer and a chemical company. All of this lead me to conclude that with them owning 85% of the share capital of DGRE and a rather big empire, they were/are going to protect their investment in DGRE. If, for example, DGRE were to suffer the financing problems that occurred at MAY, the holding company will step in and ensure it has financing etc (as MAY's main shareholder did there). Difference is DGRE is on a massive discount compared to MAY and even better than MAY can and is paying its large dividends out of net rental income leaving the capital in the business to grow. An imponderable I found out about the ultimate holder is that he takes a long term view and has a reputation of not falling out with people. However, at present all is not roses in his empire, for example, he was just about to commence a $3bn hotel/property development in Las Vegas which will probably have to be mothballed because of current market and financing problems. Also commercial property may fall further in coming months. However, he seems to take a long term view on things, which I find assuring - even if this means he is unlikely to buy DGRE back (as you hope) for, say, 130p per share to make a quick buck out of having floated the company at 200p. I hope you are not disappointed - as consolation, I see a LOT more value here than 130p per share in the longer term.

Still, I could be proved incorrect, but its hard to go wrong when you are buying assets at a 65% discount even if that discount may narrow with further falls in commercial property values.

I must say that with the constant selling before today I was beginning to get worried but I have seen this before - the facts speak for themselves and eventually the market will recognise this albeit it will take some time. Please do not misunderstand me, barring a change in perception of DGRE I imagine the overhang of shares may persist for some further months but the fundamentals are so outstanding as to make this quite irrelevant. Indeed, it just gives me an opportunity to buy more.

Have I convinced you nickcduk to look at your investment on a longer term horizon rather than take a quick profit?

[jonwig] 27/3/2008 14:26

Kenny, go to "EDIT" at the top of your header, and tick the three boxes which will add the charts. Then "SUBMIT".
I'm not a chartist, but when I look at a company, I do like to see what the share price is doing today, recently and long term without going elsewhere.

[jonwig] 27/3/2008 13:35

Kenny ... since you insist!!

But why have you not put the standard three charts into your thread?
Do you know how?

Your comments re MERE are appreciated; but I think the company should be given the chance to explain via its full accounts.

[nickcduk] 27/3/2008 13:09

Battle lines seem firmly drawn around the 78-79p range. If we get a break higher from there we could have cleared the overhang. Wouldn't be surprised if it then made a sharp sprint into the mid 80's to low 90's.