Yep Deutsche bank is a lender too with GABI on the Collective so it's a syndicated facility |
Yes after posted was wondering if they'd be returning £75m or almost half their market cap in a few months Possible that they cut up the loan with other funds they manage or syndicated the loan - or indeed that they hold a junior position |
WC
I'm having trouble reconciling this with the June 24 interims & factsheet. Round figs, Assets at £254m and largest asset shown as 5%; largest co-living (Old Oak?) 5.1%, so largest asset £13m. And none of the problem / watchlist loans seem to fit for Old Oak. And I don't see this releasing £60m of cash for GABI.
6% reduction in NAV = £15m.
I sold my (small) rump holding about 3 weeks ago, but was wondering if returning made sense - and I don't know!
Andy |
From Greenstreet News - likely this is what caused the write down - on the plus side could be near £60m cash coming soon Henderson Park is understood to be under offer to buy Old Oak Collective, subject to surveys, for just under £60m.The London-headquartered investor is familiar with the rental market, having partnered with Greystar in 2017 to deliver build-to-rent sites across the capital.After deploying capital from Henderson Park's debut $3bn fund, last year the duo began selling stabilised assets, including the £300m sale of Ten Degrees in Croydon and Equipment Works in Walthamstow.Green Street News revealed in November that GCP Asset Backed Income, a lender to the collapsed The Collective, had appointed Cushman & Wakefield to market the building for around £75m. |
I think 3 things can be gleaned from today’s statement:-
1. Asset calculations conducted by third-parties must incorporate an element of bias towards the interests of their employers (i.e. let’s not bite the hand that feeds us!)
2. The new NAV will have incorporated a “kitchen sink” element. Gravis, the managing company will have regard to their future and will not want to have the embarrassment of further downward revisions. My guess is that the final result will be better than today’s revised NAV.
3. There remain dodgy individuals operating in our capital markets. Over the last 3 to 4 weeks the fall in the share price occured at the same time when 2 and 10-year Gilt yields were significantly declining. In reality, if anything, the share price should have firmed up; however, only a select few knew of the diminution of asset value calculations! |
Previously 12% of the portfolio was classified as problem/watchlist loans. Clearly you'd hope the write-down today has been caused by some of these loans and not new ones.
They have £15M cash now (7p per share). I guess not enough for a capital return? |
I'm not usually the one to get the low, low spike prices, but luck randomly found its way to me this morning! |
In a way, it's not a bad thing as it has had a major wobble this morning. Worth buying back in spades here. Was (only arguably) slightly too expensive at 76p (post capital return) but appears excessively cheap now.
It really does appear that someone had some good insight into this! |
Yeah, clearly the company and it's advisors gave their mates the heads up before announcing it... |
NAV down 6% in 6M to 85.47p on 31 Dec.
Ex 1.58125p 20 February
Paid 21 March
Explains recent falls in last few days Insider trading. |
2wild, I sold out completely as it was getting richer (by no means overly so) with the diminishing loan pool. Nevertheless, it has fallen 3p in real terms since the 2nd capital repayment and it's worth having a few again. |
Yes pans due quarterly dividend announcement.
I sold out at 80.1p before 2nd capital repayment. Got back in this morning at just below 73p. Looking a bit ober sold. |
Are we expecting a dividend announcement here shortly ? |
i did see that GCP made a couple of assets sales to Brookfield who continue to hoover up assets. As for GABI, next quarterly announcement is next month is it too soon to hope for another compulsary purchase or other form of distribution? |
I think GABI have done such a great job in restoring value through an efficient wind down to date, they may well have created a rod for their own backs regarding GCP.GCP could ease its issues simply by selling what they were attempting to sell, then engaging in a huge share buyback but it looks as though the buyer has failed to get financing. |
Interesting, thanks for sharing. I'll ponder. GABI is basically spending money for me, none of the returns been reinvested anywhere. It is always nice to hear other people's motivations and thought processes. |
https://x.com/wshak1/status/1879831000420913607?s=46&t=q_jw7jJGzgD9vyGNfCfKjw |
Prior, its in the RNS. |
Has the latest dividend been paid out on number of shares held prior to or after the most recent partial redemption? |
Yes, topping up GCP with the proceeds |
And, of course, less than 10 minutes after asking the question it lands in the ii account! |
Yes, received in FreeTrade ISA |
Anyone had their redemption cash? From memory(creaky, at best) it was due on or around 29/11/24? |
What is the average current loan duration following recent redemptions? |
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