Delek Glbl Share Discussion Threads

[kenny] 25/5/2011 15:18

tilt's,

Good luck with REO. I have my "lottery" money in Hirco (HRCO), which is either going to pay out big or lose the lot. I will look at REO but at present I have a rather full allocation of "hope and pray" stocks; including MCKS!

[tiltonboy] 25/5/2011 14:55

Kenny,

Yes, McKay Securities.

Battersea is a different proposition. The scheme has just been demerged out of the wreck that is Real Estate Opportunities. I bought Convertible shares of REO on the basis they were going to be equitised into Battersea. It's an awesome scheme, with the first stage of the development costing £5.5bn.

If you get chance have a look on the website and see what they are doing to a run-down, but iconic, landmark. I'm hoping that the very nature of scheme, and it's location, will ensure it's success, but I'm taking nothing for granted.

[kenny] 25/5/2011 14:46

Did you mean MCKS - McKay Securities? I have a few of those and am quite disappointed with their performance. I did not know they had any property near Battersea; do please let me know more.

[tiltonboy] 25/5/2011 14:40

Might buy some MCKS once the next lot of proceeds come through.

My big bet is on Battersea Power Station, and if they find a wealthy backer who is willing to put a decent sized equity valuation on the scheme, I will be a very happy man.

[kenny] 25/5/2011 14:24

Just looked at some more figures which are relevant to the next buyback. The ILS300m in bonds DRE has to repay in September is equal to roughly £52.8m. DRE holds 85% of DGRE so to receive £52.8m the buyback has to be roughly £62m gross.

A £62m buyback at 126p is about 49.2m shares. That as a fraction of 234.956m shares is about 20.9% of the current issued share capital. Not written is stone as the 2.13p dividend just announced gives DRE £4.25m so the buyback may be about £60m or 20.25% albeit this dividend of 2.13p seems to have been declared to make up a small shortfall on repaying the ILS200m due at the end of May.

In conclusion, it looks like the second buyback will be at 20% give or take.

[tiltonboy] 25/5/2011 13:29

Kenny,

Jenkins has adjusted his price on the back of me adjusting my buy price following the xd.

The seller has had a change of mind, so the share price isn't an accurate assessment of the situation, as you can't actually buy any.

[kenny] 25/5/2011 13:13

Thanks grollfam - that article implies we can expect the next buyback before September (well before the turkey season!) as that is when DRE have the next bond repayment.

Tilt's - better buy in before then, if you wish to. Price on Jenkins down another 2p today to 63p; all very strange, can only assume we have a distressed seller. The need to pay off the next bond means the next buyback is "written in stone"; so it's about 40% of your outlay back within a matter of months. Having just spoken to Jenkins, there is a big problem with this strategy - there are no shares to buy below 100p!!

[tiltonboy] 25/5/2011 13:11

A bit concerned that the buyer has had to donate his organs...lol...

[grollfam] 25/5/2011 12:06

also out in English on globes business site....

[kenny] 25/5/2011 12:01

Google translation from a site tapuz.co.il. Below is the translation and it looks like it comes from an announcement DRE made on 5 May or 24 May (probably yesterday):
======
05.05.2011 was signed by a subsidiary (100%) of Delek Global Real Estate plc (which the company holds 85% stake), an agreement with a third party sale of all property rights in the building known as Bell Canada, and in consideration total of 281 million Canadian dollars (about -1 005 million at the exchange rate as 24/05/2011). The balance of the loan for the property, which under the agreement Thomahah buyer, is the amount of about 117 million Canadian dollars (about -418 million h). השל;מת המכ;יר•2; כפו;פה, בין; הית;ר, לקב;לת איש;ור•7;ם רגו;לט•3;רי97;ם ואי;שו—2;י האו;רג–4;ים של הקו;נה ושל; הבנ;ק הממ;מן וכן; להש;למ—4; בדי;קת נאו;תו—4; על ידי; הקו;נה. Completion of the sale is subject to, among other things, regulatory approvals and permits for the buyer's organs and bank financing and completion of due diligence by the purchaser.
נכו;ן למו;עד זה, אין; ווד;או—4; כי העס;קה תוש;לם. As at this date, there is no assurance that the transaction is completed.
========
It is useful as it also confirms the original loan is at C$117m - I have taken C$120m in my above calculations.

[grollfam] 25/5/2011 11:44

where did you pick up this info Kenny?

[kenny] 25/5/2011 11:27

I think the Bell Tower in Canada is exchanged but not completed at C$281m but it is stated there is no certainty that the transaction will complete. Somewhat lower than the C$290-300m they hoped to get but still well above book value.

I am guessing that the figures work out as follows; C$281, less C$120 original loan, less additional loan C$60m (used as £38m buyback), less C$5m for sale costs etc leaves C$96m. That converts to about £60m.

Assuming the whole £60m is used for a buyback, they may hold some back, at 126p that gives about 47.6m shares. Current, reduced share capital is 234,956,461. That gives a buyback ratio of about 20.25% of each holders current remaining holdings.

All of the above is based on assumptions which may prove incorrect; in other words don't go out and spend the money until it's in the bank!!!

[kenny] 24/5/2011 18:20

bitochon, thanks for the information.

[bitochon] 24/5/2011 18:04

Kenny, looks like they paid me some of your takings. They initially credited my account for sale of c42% of my holding-I thought 'great'! However they took all the proceeds back yesterday and recredited me for around just 13% of holding. Guess Tiltonboy will have to keep looking elsewhere!!

[grollfam] 24/5/2011 15:11

Delek Global Real Estate plc

("DGRE" or the "Company")



Proposed Interim Dividend





The board of DGRE announces that it resolved in its meeting held earlier today (24th May 2011) to declare an interim dividend of 2.13 pence per DGRE share. The dividend is payable to shareholders on the register at 24th May 2011, and is payable on 8th June 2011 (or as soon as practicable thereafter).







For more information, please contact:



Delek Global Real Estate plc

[kenny] 23/5/2011 16:03

Just heard from Barclays and they admit they "made a mistake"! But they assure me they are going to learn from it!!! A total of 11 shareholders in DGRE, presumably the sum total of shareholders holding via Barclays, are to have their accounts amended to take the further shares and credit the cash for those shares.

So I guess Barclays are going to become involuntary shareholders and have a fair slug of shares in DGRE - tiltonboy you may get your order; if Barclays decide to sell via JP Jenkins.

[tiltonboy] 20/5/2011 07:02

Kenny,

I have put a "cheeky" bid in at 65p, and will not chase it.

My reasoning is very much in line with your views of what is likely to happen in the next 18 months. If I can re-coup my investment and hold the residual holding at nil cost while I wait for the balance to come back, is something I am happy to invest in.

[kenny] 19/5/2011 22:12

tilts,

I think 70p is a very good price. You will be well aware, however, that you should consider the fact that but for share buy backs and dividends, there is no easy or cost effective way of selling shares in DGRE. It does look like most of DGRE is to be sold and distributed to us but that is likely to still leave a large rump - in particular the NCP car parks with attached swaps, as it is not possible to unwind the swaps in a cost effective fashion until interest rates rise quite a bit.

On the other hand, you may be taking the view that you are likely to receive 70p or so in the next 18 months from further buybacks and dividends, leaving you with the shares at effectivily nil cost.

I am sure you appreciate all the the above but I would be interested in learning your reasoning for a purchase at 70p. I am tempted to follow you (!) but will not because I have such a big holding in DGRE.

[tiltonboy] 19/5/2011 17:57

Kenny,

Sounds like a decent sized (six figure) seller. I've put in a bid for 50K.

[grollfam] 19/5/2011 17:35

nope.........

[kenny] 19/5/2011 16:44

grollfam - I don't suppose you are with Barclays? They have made a total balls of my tender and are suggesting I was scaled back to about 3% - not even the basic 11.38% which is all I tendered. I am trying to sort it out with them but they are all trained to believe Barclays is always right and the customer does not know what they are talking about.

[kenny] 19/5/2011 16:35

Do Jenkins definitely have a seller or have they just marked the price down to reflect the fact the buyback has gone through? A price of 70p would be tempting were it not for the fact I still have so many DGRE.

[tiltonboy] 19/5/2011 16:21

Jenkins have lopped 30p off the Delek price, and it looks as if there is a seller around.

Any takers?

[tiltonboy] 19/5/2011 13:35

I tendered all of mine.