European Real E Share Discussion Threads

[ifthecapfits] 11/2/2015 16:12

All gone quiet.

[hugepants] 06/1/2015 13:20

the weak euro must be hitting the nav

[colonel a] 05/1/2015 10:53

Yes,
And although you can't argue with the reality of the share price the discount seems ridiculous.
No debt and a significant % of the NAV is cash or in escrow and the bulk of the property value is in solid Deutsch.
There are also perhaps small signs that Spain's economy could be climbing from car crash status - Panrico being something of a binary bet - much as it hurts short term ERET has to right to look for a longer term result.
Happy new 2016 ??

[redhill9] 05/1/2015 10:14

Two RNS anouncements, one encouraging the other less so:

2 January 2015

Further to previous announcements, the Board of European Real Estate Investment Trust Limited ("the Company") is pleased to confirm that on 30 December 2014 the Company completed the sale of the property at Murcia. The property was purchased for a total price of €1.855 million, which will be received by the Company in instalments over a period of 18 months. This amount, combined with amounts received from the insurance company as a settlement following the fire that occurred in Summer 2013, is in line with valuation as at 30 June 2014.

5 January 2015

Valuation Announcement

The Board of European Real Estate Investment Trust Limited (the "Group") announces the valuation of the Group's property portfolio as at 31 December 2014.

The value of the property portfolio as at 31 December 2014 was €53.7 million. This compares, on a like-for-like basis (following the sale of the property at Murcia), to a 30 June 2014 value of €54.5 million, a decrease of 1.5%.

The valuations are provided by the independent valuer (CBRE) in accordance with the Royal Institution of Chartered Surveyors (RICS) Appraisal and Valuation Standards and show the "Market Value" assuming an asset sale of each property and allow for acquisition costs incurred by purchasers.

This announcement is not a preliminary statement of the Group's financial results. The financial information contained herein is not audited and is subject to change. The Group expects to publish its financial statements for the year ended 31 December 2014 in March 2015.

[flyfisher] 01/12/2014 17:46

An internet search will also find that UGECAM, a French nurse training institute has also occupied a building on the ibm site, but again I think it is one of the said outbuildings.

The eret part of the site was referred to in the prospectus as being of four buildings, but a view on google earth shows a greater number on the whole site.

[flyfisher] 01/12/2014 12:47

Looking at the la gaude site on google earth, i would guess that the malongo development is at the north end of the site in some outbuildings that are not part of the eret site, probably having been split off before eret bought it, hence the reference to the ibm site.

[zangdook] 01/12/2014 10:11

NAV now 185p

That's the 30 Sept statement, NAV at 30 June. The Nice stories linked above are dated 20 Oct.

[redhill9] 01/12/2014 09:46

IMS here:



No mention of the Nice developments mentioned in above posts, so that appears not to include ERET.

NAV now 185p but cautionary comments regarding liquidity of properties and timescales for distribution.

[flyfisher] 03/11/2014 11:48

I wonder if ibm have any other sites in la gaude that it could relate to, is it definitely the eret site.

[redhill9] 03/11/2014 10:27

This looks potentially an exciting development, but if a deal has been done we should have seen an RNS from ERET by now. Could that news article be a bit ahead of itself?

[loldemort] 03/11/2014 08:28

Sorry, I was being slightly off topic and reading the bit about where IBM were moving their staff to.

[janvrot] 02/11/2014 20:24

It sounds like la gaude is sold? Does not sound like a lease to me?

[loldemort] 02/11/2014 18:53

Fascinating. From the school of you-couldn't-make-it-up, the signing of the lease on the new IBM site in Nice was accompanied by strike action on the part of some members of staff. Though it seems that IBM are actually only there to suck at the teat of the French government, so it's the French people who'll pay in the end.

Strike that, I mean of course the German people :)

[flyfisher] 02/11/2014 10:11

Potential la gaude news on the horizon?

The State Council gives go-ahead to the pioneer of fair trade coffee to create its city of coffee on the former site of IBM in La Gaude (Alpes-Maritimes).
The investment to build the 25,000 square metres of unity roasting but also the workshop of Assembly of machines to coffee and a Museum of coffee Malongo, on the former site of IBM in La Gaude (Alpes-Maritimes), is estimated at more than EUR 50 million.
The unit will accommodate 400 employees currently installed in several buildings on the industrial zone of Carros a few 10 km in the Plaine du Var (Alpes-Maritimes).





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[chevalierdaven] 26/10/2014 23:53

Gents, lets not get too excited, I think they did not mention a specific incentive on KAISERSLAUTERN because it is relatively much more straightforward to sell, and it is very likely the first asset to be sold in the medium term.

[loldemort] 26/10/2014 22:35

That is indeed reassuring! Thank you, Colonel A.

[zangdook] 24/10/2014 14:28

Thanks for dealing with that, Col A, I agree it's not made clear in the RNS.

[colonel a] 24/10/2014 14:17

Have received two replies.
Firstly explaining that the incentive is 15% of the upside above the the June valuation.
Great.
Second simply saying that this is already clear, no correction required.
I agree with Loldmort that this is not the case but am reassured and will retain the email.

[janvrot] 21/10/2014 16:17

I though the interesting (and possibly positive) was that there is no incentive for Kaizerslautern. I thought this may imply that a deal is pending.

[colonel a] 21/10/2014 14:17

Yuk,
Missed that.
The implication being that the June valuation is no longer valid.

I'm about to hit the road but I will get in touch with them on return.
That's a very odd way to set an incentive.

[loldemort] 21/10/2014 11:37

Well it will have to exceed it by more than 15%, since they are getting a share of the gross. I'd hate to see it go for 101% of the valuation!

[colonel a] 21/10/2014 11:29

I missed the RNS on the 8th but the following excerpt seems significant.

b) a conditional fee equal to 15% of the gross sales price received by the Company for any sale of its Nice asset which exceeds the valuation as at 30 June 2014;

A positive reading would be that this is where they think they can add value and the company wants them to be motivated to put a serious effort into getting a result.

Hope they make millions.

[flyfisher] 10/9/2014 17:48

ERET has already said that an improvement in the panrico covenant is needed before sale.
This extract from a Spanish publication suggests profitability in 2015 and would likely make the asset easier to sell.


Panrico expected profit in 2015 for the first time in 10 years

09/08/2014 Fontgivell Cristina Barcelona

The company controlled by Oaktree Fund prepares to launch their new product lines that will allow frozen start exporting.

The deep restructuring plan launched a year ago by Panrico begins to have an impact on the income statement of the company.

In September 2013, the American fund Oaktree, owner's signature pastries, made-an expert Carlos Gila business- Panrico restructuring ahead to execute a record of employment regulation (ERE) to 700 employees and achieve savings 50 million per year.

[asmodeus] 28/8/2014 18:42

28 August 2014

The Board of European Real Estate Investment Trust Limited ("the Company") is pleased to announce that on 27 August 2014 the Company received consideration of €1.25 million from the insurance company in respect of the fire damage at the property at Murcia. This is in accordance with the terms set out in the announcement dated 11 June 2014.

Under the settlement agreement reached with Panrico, Panrico has agreed to purchase the Murcia property for €1.9 million. This amount, combined
with the insurance proceeds referred to above, is in line with valuation as at 30 June 2014. The sale is expected to complete in September 2014 once certain conditions have been achieved.

[flyfisher] 30/7/2014 09:10

Panrico is considered by the eret management to be the largest risk in the portfolio.

The protracted strike at the panrico Barcelona factory ended several days ago, with workers voting to return to work.

Whilst this property is not part of the eret portfolio, the return to full operations for panrico should complete the current panrico restructuring, which has been ongoing for several months.

It seems a step in the right direction.