Gcp Infrastructure Inves... Share Discussion Threads

[typo56] 04/12/2014 10:30

The FTSE decision was made yesterday, based on the market caps at close on Tuesday.

According to the company, dealings in the placing shares commenced on 25th Nov, making a total of 513,848,242 shares in issue. However, I see that FTSE aren't going to recognise that until Mon, 22nd Dec, the start of the new quarter. They presumably decided there hadn't been sufficient increase in the number of shares in issue to warrant inclusion between reviews. That's strange because the FTSE Ground Rules state that changes of over 10% are included between reviews and this change was about 14%. Ah well!



Page 13:

[jonwig] 03/12/2014 20:49

Typo - I think it's the placing, as you suggest.

Current MCap of £602m vs £578m for GMD.
At 30 Sept the MCap of GCP was about £535m. There was a placing programme in between which raised £70m or so.

It may be that the decision was made before 21 Nov, when the placing result was announced. The free float is taken into account, but that looks OK.

Next quarter perhaps?

[typo56] 03/12/2014 19:45

I wonder why GCP didn't qualify for promotion to the FTSE 250 in tonight's index review. GMD got promoted instead. GCP aren't even on the reserve list. Perhaps the recent placing shares haven't been included in this review.

[jonwig] 27/11/2014 07:32

Infrastructure investment must be treated as a wholly independent sector rather than a bolt-on for real estate or private debt investors, according to a panel of experts.

More:



There might be implications for institutional asset allocation, I don't know.
Any comments?

[wirralowl] 01/9/2014 17:48

Received my divi payment today..

[wirralowl] 29/8/2014 11:34

Thanks jonwig. For some reason I'd missed this RNS in July, so was wondering if the payment was going to be pushed back to Sept. However, payout date was stated as 27 Aug, so no worries because as you rightly say, you do tend to have to wait a couple of days before the brokers pass it on.



RNS Number : 2828M

GCP Infrastructure Investments Ltd

15 July 2014

GCP Infrastructure Investments Limited

(the "Company")

Headline: Dividend Declaration and scrip dividend alternative

15 July 2014

The Board of the Company is pleased to announce a dividend of 1.9 pence per ordinary share, for the period from 1 April 2014 to 30 June 2014. The dividend will be paid on 27 August 2014 to holders of ordinary shares recorded on the register as at the close of business on 25 July 2014.

[jonwig] 29/8/2014 11:25

Wirral - I have it noted as payable today. With these CI funds, payment tends to be a few days late into the account. Not to worry, I'd say!

[wirralowl] 29/8/2014 10:43

Was expecting a dividend announcement/payout this month, but looks like its going to be September now...?

[wirralowl] 13/2/2014 14:00

Thanks for the heads up guys.

I posted in haste on the basis of a quick look in my dinner hour. I'll delete my original post, as don't want to lead anyone up the garden path.

[rik shaw] 13/2/2014 12:42

Be careful as I understand that you will be buying C Shares for £1 which will be converted at a later date into ordinary shares at an unspecified conversion rate based on relative NAV. Do not look at it as a 9p discount to existing.

[jonwig] 13/2/2014 12:39

They are 'C' shares which will have an immediate NAV of 100p less a bit for admin.
Once the C shares are fully invested (or almost so) they will be converted into ords but not on a 1:1 basis.

This means that neither new nor old shareholders are diluted.

[wirralowl] 16/12/2013 10:16

I'd agree the results were impressive. NAV is reported as 104.35p, so premium is more like 8% though, arguably favourable when compared to HICL (approx 12%) and in line with JLIF (both of which I also hold). The yield of 6.7% is also higher than their peers.

Edit. Apologies asmodeus, had missed the last reported NAV of 101.4 at end of November, which presumably takes into account the 3.8p declared dividend (now ex-div). So to purchase now, you're correct the premium is 10%+.

[jonwig] 16/12/2013 10:09

asmodeus - yes, true! But typical: 3IN, HICL, JLIF the same.

GCP makes loans rather than equity, so might be safer.

[asmodeus] 16/12/2013 09:51

Was going to buy today after seeing results - until I found 10%+ premium.

[jonwig] 20/5/2013 07:58

GCP Student Living - first dealings today. 100p issue price, £70m. EPIC is "DIGS". (!)

[jonwig] 13/5/2013 07:54

cnx - thanks. I read about this in Investors Chronicle last month and there was a suggestion of possible conflict of interest.

Anyway, I won't be able to subscribe at IPO, but might look when dealings start.

[cnx] 11/5/2013 18:48

from killik


GCP Student Living - 23/04/2013

Gravis Capital Partners (GCP) the specialist investment advisory firm, formed in May 2008, plans to launch a new UK Real Estate Investment Trust (REIT) on the Specialist Fund Market (SFM) of the London Stock Exchange (LSE) next month. GCP Student Living will target an initial 5.5% annual yield, and an 8% to 10% total return by investing in newly built, fully let, purpose built student accommodation and teaching facilities located in London and branded under Scape Student Living.

In 2010, GCP launched GCP Infrastructure Investments (GCP-LON) on the London market, a feeder fund into the GCP Infrastructure Fund, providing exposure to a portfolio of subordinated debt securities issued by operational UK infrastructure assets. GCP'S total assets under management now stand at c. £700m and whilst the current fund specialises in all UK social infrastructure assets, the management team have considerable experience in student residential and educational property assets, having advised on projects totalling in excess of £500m in value over the last 10 years. The lead fund manager of the new fund will be Tom Ward.

The company will target an initial capital raise in excess of £50m, which will be used to acquire the Scape East Building, a property housing a total of 588 studios and 20,000 sq. ft. of teaching facilities located directly opposite Queen Mary University of London in Mile End, London. The property was fully operational in time for the start of the 2012/13 academic year and is currently at full occupancy on 51 week tenancies and with a stand-by waiting list. The proceeds of the issue will be used to acquire the property, independently valued at £93m (equating to a net yield of 6.3%). £35.2m of the purchase price will be paid to the initial asset vendor and £57.8m of debt will be assumed. It is expected that approximately £13.3m of the debt facility shall be repaid by the company (based on a £50m raise) reducing the loan-to-value (LTV) to 48%. The company has set limits of between £43m and £70m for the IPO raise and the amount of the debt facility which will be paid down will be adjusted accordingly. The LTV could therefore range between 26% at the maximum and 55% at the minimum. The long-term plan is for gearing to be no greater than 30% of gross assets. The existing debt facility (which was initiated for the development phase) has a 2.5% margin on a 2.75% fixed interest rate swap, equating to a rate of 5.25%. This facility matures on 20 July 2015. Management have forecast a refinancing rate of 4.25% on a now operational asset, based on a conservative premium on current debt markets for a property on a 50% LTV. However, this financing event clearly poses a risk and leaves the fund susceptible to rates rises between now and 2015.

All occupants of the building are required to be in full-time education in a Higher Education Institution (HEI), of which there are 40 in London. 63% of current revenues come from direct leases on a 51-week term (with the remaining week used for cleaning and restoration work). 31% of revenues are generated from the leases arranged through a ten-year RPI-linked agreement with a HEI (INTO). Further rental income is generated through a 30-year lease of teaching facilities (c. 6%) and food retail outlets (0.5%) in the property.

Full-time student numbers in the UK have increased by c. 65% since 1995. Applications into higher education did decline in the 2011/12 year in the face of the increase in tuition fees, however, these declines were small and were in large part seen due to the comparison with record number of applications in the previous year as fewer domestic students deferred applications ahead of the fee increases. Strong growth continues to be seen in the numbers of overseas students, which now make up 17% of all students in higher education in the UK (nearly 26% in London). With university-owned halls of residence in short supply and often only provided for first-year students, private, purpose-built student accommodation is increasingly in demand. Data from Jones Lang LaSalle shows historical rental growth in the sector has proved robust, delivering steady and rising rents, in excess of RPI since 1994.

The Specialist Fund Market (SFM) is the LSE's regulated market for specialist investment funds, targeting 'institutional, professional and highly knowledgeable investors'. This specialist listing may mean the fund falls off the radar of main-market listed investors which, along with its initial small size, may disadvantage liquidity in the secondary market. However, the company intends to grow the fund in size and this may mean a main-market listing is considered in the future. The fund has a right-of-first-offer to acquire two further Scape properties with estimated value of over £160m – Scape Greenwich (due for completion in 2013/14) and Scape Shoreditch (2015/16). The funds secondary, Channel Islands Stock Exchange listing will make the offering eligible for ISAs in either the secondary market or via the placing.

It is expected that initial charges will equate to 3% of gross proceeds, meaning the initial NAV will be 97p on a 100p issue price. However, this disclosed cost also includes all acquisition costs of the initial asset and the charges involved in the transfer and repayment of the existing debt. The externally managed structure will also carry an annual management charge of 1% per annum, based on net asset value. The company will have no specific discount control measures in place other than the ability to buy back up to 15% of issued share capital per annum. Protection against the risk of the company not making further investments and increasing the size of the company is achieved through the proposal to convene a conditional continuation resolution if, by its third annual general meeting in 2016, the company is the owner of no more than one student residential property. A continuation resolution will also be held at the fifth annual general meeting in 2018.

The focus on operational student residential property assets makes this a unique offering for the London market. The economics of the student housing market, particularly in London, remain strong. Notwithstanding a widespread change in global student trends, immigration laws, or competition from alternative living arrangements, we believe this fund provides an attractive opportunity to play the sector and provide long-term inflation-linked cashflows. There is clearly concentration risk in the initial single asset and potential refinancing risk between now and 2015. However, GCP have successfully executed their strategy on the existing listed fund and the significant personal investment in the fund from both the new and existing partners of the property asset adds extra comfort. The order book is due to close in the first week of May, with trading expected to commence on 20 May.

[jonwig] 04/4/2013 14:06

NAV 101.96p on 28/03, making this the biggest premium of the four infrastructure funds I hold.
But the fact that they do loans not equity perhaps increases the safety margin. And quite an interest rate charged!

[jonwig] 27/3/2013 06:28

Yes, all the infrastructure funds are firm: 3IN, HICL, JLIF and this one.
The government's commitment to infrastructure spending should ensure plenty of investment opportunities.

[drewz] 27/3/2013 02:22

Moving up nicely.

[jonwig] 26/11/2012 11:54

FT today:

BlackRock, the world's biggest manager of money, is to launch its first foray into the global infrastructure debt market as it seeks to fill the void left by banks that are no longer prepared to invest in big government projects.

Investors say the entry into the market by BlackRock, the giant fund manager with $3.67tn under management, will encourage other asset managers, pension funds and even sovereign wealth funds to invest in infrastructure.

[badtime] 04/10/2012 09:34

thnx jonwig

[jonwig] 04/10/2012 08:05

June and December (xd a month before) 3p - 4p expected each time.

[badtime] 03/10/2012 23:27

Excuse for asking...when r divs paid?