European Real E Share Discussion Threads

[praipus] 22/11/2012 15:15

Sand dollar, pardon me for asking why did you buy so many and why sell now?

[sand dollar] 22/11/2012 14:23

Just sold 16398 shares, but it doesn't show on the trades yet, I guess there must be a big delay.

[jonwig] 16/11/2012 08:31

Q3 IMS to 30 Sept:



No progress on disposals since H1, market frozen. Next valuation 31/12 ... expectations low, I think.

[skyship] 04/11/2012 12:40

Jonwig - could you perhaps drop the new website address into the Header:



RE APT v. MERE

Firstly, I like the confidence shown by WEISS and I like the unambiguous (if perhaps optimistic) objective to sell down the property portfolio by End 2013.

My concern is the marketability of all those large assets, almost trophy assets in some cases. That can be an advantage; but not in current markets and outside the principal cities.

I prefer the much smaller APT assets which have attractions to private investors as well as pension funds, especially those in West Germany (63% of assets).

I do agree with you that the APT Board has been rather woolly in their official pronouncements regarding the changing Strategy. Personally I think liquidation is inevitable in view of the end 2015 Continuation Vote. However a far earlier end game would save AXA further embarrassment.

Indeed, it seems to have gone relatively unnoticed that the Strategy Change RNS does actually confirm asset sales as part of the deleveraging, so when they do finish their "Consultation" with shareholders, they will already be well down the liquidation track:

21st Aug'12 - Deleraging & Strategy Statement:


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Focus on Deleveraging

Considering the ongoing challenging macro-economic climate and adverse property and debt environments the Board has decided that it would be appropriate for the Company to conservatively review its current investment strategy. The Board believes that, given the current market environment, it would be in the best interests of the Company to reduce its level of gearing. In order to achieve this the Company intends to realise assets considered as non-core in an orderly manner over the next 12-18 months with a view to further paying down the Company's current debt and does not intend to reinvest any capital during this period, except for necessary tenancy works in order to maintain or enhance value.

Shareholder Consultation

The Board has in consultation with the Manager carefully considered the sustainability and future of the Company taking into account the small market capitalisation, the wide discount to Net Asset Value and the relatively high TER of the Company.

The Board therefore believes it is appropriate to continue to engage with shareholders with a view to determining the future strategy of the Company. Once the debt obligations of the Company have been stabilised, the Board will undertake a consultation exercise to determine whether the Company should continue in its current form or whether the Board should implement a new strategy, such options to include a broader reconstruction or winding-up prior to the 2015 continuation vote.
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[jonwig] 04/11/2012 12:13

SKYSHIP - if they can/will sort the charts, that's good!

I see you're interested in APT.
A quick comparison:

ERET: MCap £36m, Gross Gearing 67%, NAV 206p at 30/06, disc 48%.

APT : MCap £28m, Gross Gearing 50%, NAV. 60p at 30/06, disc 54%.

ERET has, maybe, one advantage - it's already in the process of asset sale and new managers Schroders (good people) are incentivised for speed and value. It has one property (in Spain) which might be problematic. Its banks will support as it's doing what they would be demanding.

APT has better numbers (LTV, gearing) but hasn't committed itself to a strategy - and may not even go for total disposal. I can't comment on their individual properties, nor on the managers.

So I'll stick with ERET for the cash return, maybe 160p by end-2013.
I'd buy APT around its current price if it had a definite strategy.

[skyship] 04/11/2012 11:54

The trades show WEISS paid:

105p for 85,0000 & 105.75p for 1,000,000

[skyship] 04/11/2012 11:28

Jonwig - I've asked ADVFN to adjust the ERET chart to reflect the history:

===========================================
MERE has changed its name - new epic = ERET.

Could you please update the ERET chart with the MERE history please.

Link to new thread below:


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[jonwig] 01/11/2012 07:40

Good - reminds me I need to keep track of holdings in the header!

[praipus] 31/10/2012 20:20

Thanks Jonwig,

In celebration Weiss have bought some more inceasing to 11.95%


I'm tracking the rest of their holdings on the WAM thread.

[jonwig] 31/10/2012 18:14

Matrix European I T changed its name on 10 Oct 2012 and agreed a change of manager from Matrix to Schroders.

It's active in the disposal of its portfolio and return of capital, and the manager is incentivised to do the job speedily and profitably.

The old MERE thread is at ...



Latest NAV: 206p on 30/06/12

Significant Holdings (total 33.2m shs) 01/11/12:

Weiss Asset Mgt ... 3,964,287 ... 12.0%
Leon Baroukh ...... 1,000,460 .... 3.0%