European Real E Share Discussion Threads

[orinocor] 18/8/2016 12:05

"My spreadsheet says selling at 188p is selling at a market cap of £14.5m v NAV of £18.8m (including £13.6m of net working capital (mostly cash))."

I think there will be another redemption before the end of the year. They do not need to sit on all these funds. In liquidation mode. NAV of 235p and showing 185p to sell. No thanks!

[spob] 18/8/2016 11:04

I agree flyfisher

sold my remaining today also at 188p

personally would like to buy back around 145-150

as you say, many moons before La Gaude decision

[spob] 18/8/2016 11:02

note

remaining shares sold today 188p

after the 2 recent redemptions 13.33% @225p and then 49% @235p (44.2% remaining)


looking to buy back at a suitable discount to remaining assets allowing for risk

no council decision on La Gaude before 2018

[eezymunny] 18/8/2016 10:46

Interesting flyfisher. I've sold some post last redemption and kept some. It's tricky.

My spreadsheet says selling at 188p is selling at a market cap of £14.5m v NAV of £18.8m (including £13.6m of net working capital (mostly cash)).

Clearly cash dwindles from here as there's no income (but I guess pretty slowly unless they "do something" with La Gaude).

Lots of variables, La Gaude, wind-up costs, exchange rates etc. I think risk/reward is still good here, tho obv not as good as prior to recent redemptions.

At your "I thought it would fall to" 165p price market cap £12.7m. Seems unlikely (tho perfectly possible if La Gaude white elephant and/or unforeseen wind-up costs).

Just that possibility that la Gaude might be worth much more than stated current NAV that keeps me interested! I'm happy to wait a year or two to find out.

[flyfisher] 18/8/2016 09:56

Redemption payment received today with H/L.

That marks an exit for me, having sold the residue in the market in recent days.
I expected it to fall back to about 165p after the last redemption and was pleasantly surprised that it held up.

La gaude could well surprise to the upside, but I do not like the heavy influence that the local council have on future use, or that conversion to residential use cannot be considered until 2018.
They also seem to be having trouble closing down the german subsidiaries, with potential tax issues having been partly mitigated by an insurance contract, it is difficult to put a timescale on the final outcome.

Good luck.

[rj allen] 17/8/2016 12:35

Many thanks for the worked examples

[flagon] 17/8/2016 09:07

My example showed what would happen if holding for either the 6th or 7th redemption but not both. If both Sleepy is correct.

[redhill9] 17/8/2016 08:51

Flagon, I don't think your example is quite correct?

The starting position for the second redemption won't be 1,000 share but the shares remaining after the first redemption - in your example, 867. I'm assuming the two redemptions are sequential due to being a week apart whereas your example seems to suggest they are simultaneous.

[sleepy] 16/8/2016 21:42

And taking both of the above into account you should have 442 shares or thereabouts

[flagon] 16/8/2016 19:13

6th Redemption

13.33% of 1000 shares would have been redeemed @ £2.25 each ie 133 x 2.25 = £299.25 leaving you with 867 shares.

7th Redemption

49% of 1000 shares would have been redeemed @ £2.35 each ie 490 x 2.35 =
£1,151.50 leaving you with 510 shares.

[rj allen] 16/8/2016 15:09

Could someone be kind enough to tell me how much cash and shares I should have received on 11th August for say 1000 shares?

Many thanks

[orinocor] 12/8/2016 21:33

I see some sold out. I was going to sell some when the NAV was 225p but when it rose to 235p for the 2nd redemption I changed my mind. I just refuse to sell at 200p when the NAV is 235p and probably actually a good deal more than that when La Gaude is sold.

[n1mgn] 12/8/2016 09:15

thank you ,

at £2 gives us a valuation of 15.4 mil gbp - valuing la guade plus excess cash at 18 mil euros ish - would be interesting if anyone knows how much cash is left in ERET ?

so assuming we get change of use the upside could be very large from, here.

best of luck

[redhill9] 12/8/2016 08:43

n1mgn, RNS today giving the share figure you are looking for:

Voting Rights and Capital as at 12 August 2016

In conformity with the FCA's Disclosure and Transparency Rules (DTR 5.6.1), the Company notifies that the Company's issued share capital consists of 7,735,321 participating shares ("Shares") further to the redemption of 7,431,453 Shares effected on 11 August 2016. None of these shares are held in Treasury, therefore, the total number of shares with voting rights in the Company is 7,735,321.

[orinocor] 12/8/2016 07:53

Boo. nothing received yet from the first redemption from either iwebsharedealing or jamesbrearley

[redhill9] 11/8/2016 22:42

Thanks Flagon, it's an old article but as you say interesting information about La Gaude. It's not difficult to see from the photographs why ERET believe it would make a suitable residential conversion - impressive looking building.

[n1mgn] 11/8/2016 20:21

thats excellent thank you ,

after the share buy back tomorrow , can anyone tell me how many share will be left please ?

It could be a bit pf a long play but very interesting one if the share price drifts .

Good luck to all

[flagon] 11/8/2016 17:22

Cash received from TD Waterhouse today for recent tender.

The following link discusses ERET and has some information about La Gaude that I found useful ... hope not posted before.

Link ->hTTps://www.valueinvestorsclub.com/idea/European_Real_Estate_Investment_Trust_Limited/136177

[eeza] 11/8/2016 15:42

It's not that they can't cope....

[spob] 11/8/2016 14:44

God knows how Barclays will cope with two redemptions in the same stock so close together

should be interesting

[redhill9] 11/8/2016 14:01

Cash received in Hargreaves Lansdown accounts, nothing yet (predictably) in Barclays. They'll need another couple of days minimum based on past experience, as it's so complicated...........

[flyfisher] 11/8/2016 13:00

The cash from the first redemption has been credited to my account today.

[redhill9] 08/8/2016 08:27

Yes, the next redemption is to be at 235p per share. The last paragraph in the extract below looks interesting suggesting further information perhaps on La Gaude with end of August statement.


8 August 2016

European Real Estate Investment Trust Limited ("the Company")

Return of capital

Further to the announcement made on 1 August 2016 in respect of a return of capital of €20.7m, the Board is pleased to confirm that the Seventh Redemption will be effected at the estimated unaudited Redemption Net Asset Value per share as at 28 July 2016 of 235 pence per share. The NAV per share of 235p (including the distribution of 30 pence per share made on 4 August 2016) is an unaudited estimate and will vary contingent on a number of matters including the sterling euro exchange rate and the realisation proceeds from the La Gaude asset when that asset is sold. There may also be liabilities associated with representations and warranties that have been given in respect of properties sold. Any liquidation costs associated with the structure are not included in the estimate of NAV. The Redemption will be effected pro rata to holdings of shares on the register at the close of business on the Redemption Record Date, being 11 August 2016. On this basis 49.00 per cent. of the Company's issued share capital would be redeemed on the Redemption Date.

The Board will be reviewing its options in respect of its remaining assets in due course and will look to give further information in its interim financial statements expected to be released at the end of August 2016.

continues.......