Clever deal that |
Yes - 44% NAV discount. However debt a real problem with very short term maturity. Also 10% of income from tenant WeWork - in bankruptcy!
Yield just 5.1% - way below other REITs with far better credentials. |
Topped up again- think this is way too cheap |
In for a few - got to be value here. Only dead fish swim with the tide and all that... |
I remember this stock being tipped in 'Fleet Street' magazine over 40 years ago. Glad to see it's surviving ? |
Got to be value here |
Grim, real estate collapse, they are probably disguising the worst of it, catastrophic collapse ahead, London is already starting to see the fall out from China. How many Canary Wharf office buildings empty due to Chinese property companies defaulting and repossessed in a falling demand for large space offices?
I wouldn’t look at any uk property companies until after end of October to see if we have survived a market crash, calm before the storm me thinks. Continue to AVOID |
Seems to be a shift back towards working in the office, as opposed to watching boxed-sets at home, so I topped up today on a modest basis. I appreciate recent opinions on this thread, very helpful. I live in London and the centre is becoming very busy over recent months. |
NY, I would not expect many defaults at their end of the market,
HLCL once again showed their shrewd timing by disposing of their largest asset recently. But yes it's a tough sector ATM and UK longer term rates are rising as is their vacancy rate.
It depends whether you think there will be longer term demand for London grade A office
space, that's key and the share price currently indicates market doubts on this. |
Based on the business model that HLCL operate, the defaults of the lower grade buildings actually work in HLCL's favour since they are able to acquire them at lower prices.
Moreover, they have a very strong balance sheet, able to withstand an almost 50% drop in property value before convenants become an issue. |
An awful lot of defaults coming up in the commercial real estate imo
Sector avoid for me |
Fall on sector wide interest rate concerns i wonder? Adding for a long term hold. Buy and forget. |
Thanks EI, appreciate your view. GPE released an upbeat TU which is a nice read across and consistent with what Helical have been saying “Whilst the macro-economic volatility persists, we remain confident that we are well placed for these market conditions. We anticipate that the uncertain outlook in the near term will exacerbate the shortage of new deliveries in central London, supporting rents for the best spaces and, given our low levels of leverage, present opportunities in the investment market to add to our development pipeline and expand our Fitted and Fully Managed offers” |
I think best in class London office is the safest in the office sector, however location is a big part of that. GPE looks the
sector play on London office given their locations. |
Well timed buy last month EI. I have been reading a lot about how London office space is in predominantly poor EPC rated buildings will upcoming regulations. Seems like Helical is almost 100% in modern energy efficient office space so i have taken a maiden position but had to pay £3.04. The TFL JV looks excellent strategically so this is one to tuck away and not worry too much if i have found the bottom. Any views welcomed. |
GPE looks the lower risk play. |
Bravo!
Transport for London selects Helical as preferred commercial office portfolio joint venture partner
-- Helical is selected to progress to preferred bidder stage with TfL for its commercial office portfolio joint venture
-- Portfolio will create well-connected, sustainable and inclusive workspaces across central London and includes three over-station development sites at Bank, Paddington and Southwark
-- New partnership is part of TfL's wider property development programme, which is delivering operational benefits and generating vital revenue to allow TfL to keep the city moving and invest in safe, green and reliable public transport
Transport for London (TfL)'s wholly owned commercial property company, TTL Properties Ltd (TTLP), has announced it has selected Helical as its preferred investment partner for its sustainable commercial office portfolio across central London, subject to contract negotiations and a 10-day standstill period. |
Any views here folks following the H1?.
They have significantly reduced gearing. |
Where does the latest asset sale leave LTV, below 30%?. |
Standby for takeover. |
Could have braver yesterday as this was available near £3.30 following my very small buy. |
Bought back 1,000 shares to keep this on my screen.
In the March 2020 COVID plunge HLCL got down to £2, you could only buy a
few hundred shares around that level.
Currently on an approx 40% discount to
NAV, but so are many others. |
Spec, thanks for the reply. Perhaps looking to add value through development, redevelopment. I can't see them buying an existing grade A office building. |
Missed it, was ironically in London yesterday :)
"Marginal premium to book value", but I'd say flogging that looks like a great deal. BCPT, CTPT have done similarly wise London disposals, eg CTPT's at 3.2% can't be far off calling the top of the market, when interest rates alone will get to there before long.
Always staggered by London - this is a 148 year leasehold, somehow worth £158m (looks like about 5% yield).
If I were a holder, I might rather they looked at buy-backs rather than:
"...Recycle the proceeds from the sale into delivering new highly sustainable 'best-in-class' Central London office schemes, where occupier demand remains strong.""
Doesn't yet look a buyer's market to me. |
Spec, you no doubt noticed yesterday's disposal.
Still holding off. |
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