Hirco Share Discussion Threads

[hugepants] 06/7/2011 23:05

Hirco (HRCO): It's a similar story at property fund Hirco, which trades at an even greater discount of 90% and has just seen two of its current shareholders increasing their stakes in the company. Weiss Asset Management has increased its ownership from 5% to over 18%, while Prana Master Fund took has taken its stake from 4.25% to 5.69%.

[hugepants] 01/7/2011 10:24

Liberty Hedge got well and truly horsed in the EGM vote. Their open letter was an act of desperation methinks. 90% voted for the resolutions. Hirco can now negotiate from a position of strength.

[nilip] 01/7/2011 08:40

Yep, that is a significant holding indeed ~ 14%

[scburbs] 01/7/2011 08:14

"Real estate investment and development firm South Asian Real Estate has closed a deal for buying a 100-acre piece of land in Navi Mumbai from Mumbai-based developer Silver Oak. SARE and Silver Oak have set up a joint venture company, in which SARE will have a majority stake. The joint venture will develop an integrated township on the 100 acres, which will include mid-income residential development, mainly low-rise. The cost of the land parcel in Panvel is between Rs 150-200 crore, said a source close to the development, who did not wish to be named.

"The total cost of the project will be $350 million (Rs 1,575 crore) including construction expenditure and land acquisition. It will be financed through combination of customer advances, equity and debt," said the source. SARE will infuse Rs 75 crore as equity contribution. Consulting firm Ernst & Young is running the transaction.

The joint venture company is expected to start work on the township in three-six months and is expected to take 5-7 years to finish the project. Many real estate developers are showing interest in projects around Navi Mumbai in the backdrop of several infrastructure initiatives being undertaken or announced by the government, including an international airport here."

[scburbs] 01/7/2011 07:26

Good to see Weiss now well and truly on board with 13.85%.

"The significant shareholder now holds 13,921,829 Shares which represents approximately 13.85% of the Company's issued share capital. The significant shareholder holds its interest in the Company through the following entities in the following proportions:

Brookdale International Partners, L.P. - 9.71%

Brookdale Global Opportunity Fund - 4.14%"

[lbo] 27/6/2011 23:05

Piramal, Godrej, Hiranandani chiefs say supply shortage, increasing development costs and delay in getting approvals are keeping real estate prices high

At the CII real estate summit on Friday, Ajay Piramal, chairman, Piramal group, Adi Godrej, chairman, Godrej group, and Niranjan Hiranandani, managing director, Hiranandani group, suggested that prices could go up even further.

[horndean eagle] 16/6/2011 08:44

Resolutions will get voted through fine. What isn't public knowledge is that there is a single client within HSBC private bank who owns nearly 30% of the company. Has owned that stake since flotation and is taking up his entitlement in the placing.

[hugepants] 15/6/2011 20:26

Yep Weiss have bought another 600,000

[horndean eagle] 15/6/2011 20:08

erstwhile2- Perhaps a little more research is warranted:-



Panvel and Navi Panvel up 15 and 22% in the first quarter of the year. This is following the go ahead given to the new airport. You will notice that rates are substantially more affordable than central mumbai where prices are 7 times higher. A huge amount of infrastructure is going to be built in Panvel and large numbers of corporations will set up in the vicinity. Indiabulls Greens project pricing has gone up from around 3200 to 4500 in the last 9 months. HPG Panvel will price nearer 5100 when the next phase is released.

[envirovision] 15/6/2011 19:50

Weiss Asset Management still a buyer then and taking advantage of present weakness.

[scburbs] 14/6/2011 09:54

Never heard of them, but perhaps someone should let the MBE "independent" board know about them, although I doubt they would get such a favourable response!

[mark1000] 14/6/2011 03:14

Tracing back to the rights issue price of 50p

[brwo349] 11/6/2011 12:00

erstwhile I doubt the Indian courts will do Hirandani any favours. He's never out the news defending some charge or other. How do you think you become as rich as he has in a country like that. Lets just say a few corners have been cut.
On the other hand India needs foreign investment in bucket loads and its certainly in their interests to make sure foreign investors see a return. It looks very very bad that hirco investors are down 90%. They will side with hirco because they have to. Its a decision worth billions to India

[kenny] 10/6/2011 16:24

As a shareholder, I am pleased the dispute with "the Family" is escalating. Post the placing, HRCO will have the money to escalate to formal proceedings if it is not possible to do a deal, either with the Family or another party, to realise value for shareholers.

I am also not frightened by the Family stating funds may not flow until 2021 because it is still a good rate of return even if I have to wait that long.

[skanjete2] 10/6/2011 15:56

Well, to give us an idea of the minimum underlying value here : the Family proposed a merger in which Hirco plc owners would get something less than 50% of the projects equity.

The board obviously considers this to be a ridiculous proposal, but in fact that gives an idea of the minimum value of Hirco at this point. Suppose the projects are economically viable, then the Hiranandani proposal entitles Hirco owners to some 50% of the total.

If the board agrees to the Family merger tomorrow, hirco plc shareholders will get a little less than 50% of projects estimated to be worth some m844£. The value of Hirco plc would in that case be, let's say, some m400£. This valuation may be too high, but there quite a margin of safety, I'd say.

In view of the marketcap of some m50£, I can understand the Weiss investment.

[horndean eagle] 10/6/2011 15:15

They will continue the build out as they contractually obliged to. If they stop building then they will be in breach of the agreement between HRCO and themselves. What they might try to do to delay the cash being returned is build facilities early on in the project which are not necessarily needed. That is another reason why the date has been pushed out to 2021. HRCO don't accept the report that was prepared. It was unduly influenced by Hiranandani input. An independent review by another party is likely.

[tim000] 10/6/2011 14:30

ok, there is now but if they stop building or stop trying to sell the properties there won't be, the value of the assets will surely suffer impairment charges and banking covenants might be breached. I wouldn't think this scenario can be ruled out 100%, it seems to me that the family hold the better hand and the hrco board will have to relent to some degree.

[kenny] 10/6/2011 13:57

That is not possible because there is actual value in the trading companies - it is only that the preference shares have first call on all or most of that value that reduces the trading companies value.

[tim000] 10/6/2011 13:39

is there another risk that, rather than try to exhaust hrco of working capital over the long term, with no economic interest left in the building projects the family put the trading companies into receivership and buy them back from the adminstrators, without the equity held by hrco?

[horndean eagle] 10/6/2011 10:44

Arbitration proceedings will take place in Singapore and are based on UK law I believe.