Intu Properties Share Discussion Threads

[hillofwad] 02/6/2020 08:50

Meanwhile back at the ranch


"Monsoon Accessorize has reportedly warned landlords that they have a week to offer up rent waivers or it will permanently close down stores.

The retailer announced last week that it is on the brink of falling into administration, which could place 3500 jobs at risk of redundancy.

Landlords were issued the ultimatum in a letter as the retailer scurries to find ways to survive during lockdown, The Telegraph reported."

[babbler] 02/6/2020 08:46

How down is the price on the year?

[babbler] 02/6/2020 08:39

500k above ask paid.

[prince7652] 02/6/2020 08:36

Added more 10.17

[hillofwad] 02/6/2020 08:35

Market seems to think that the lenders will accept a standstill agreement which will give them time to sell some assets which sounds sensible

However the bondholders have already gone into bed with an investment bank Moelis to recoup their £1.3bn rather more quickly on the 4 ringfenced centres

That opportunity will present itself in a few weeks when loan covenant breaches

With the added bonus of obtaining some free equity they wont let this opportunity pass

[nickrl] 02/6/2020 08:31

INTU have issued an update on cash flow projections this morning

hxxps://www.intugroup.co.uk/media/6986/intu-properties-plc-cash-flow-projection-information-02062020.pdf

Shows the debenture and metro centre under water.

There projecting around 60-70% of rent going forward - not sure thats aggressive enough but at least there being realistic.

[tez123] 02/6/2020 08:26

Me too just under 7Look at that 3 yr chart!!

[prince7652] 02/6/2020 08:17

Back in 7.5

[goliard] 01/6/2020 09:55

AGM today I think so we might get an interesting announcement to go along with the usual stuff on votes.

[hpcg] 31/5/2020 13:18

It is a house of cards though. Not dissimilar to Hertz. There the automatic adjustment for asset values in the ABS attached to the cars tipped everything over the edge. Here as soon as the first asset is seized by the secured lenders that asset balance disappears from the corporate level and all the covenants get hit. Secured lenders in specific assets have no choice but to seize the, it is their fiduciary duty and if they didn't they would be subject to legal action from their owners. It will be this month I think. The only alternative is a ground up recapitalisation where existing equity is entirely replaced. It seems too late for that to happen now.

[hillofwad] 29/5/2020 09:09

INTU also only have a month to stave off control passing on Watford,Nottingham Glasgow and the mighty Lakeside to the other bondholders

Maybe they can find £1.3bn down the back of the sofa

[hillofwad] 29/5/2020 08:36

Jaknife

LINK pulled out when COVID had already hitting Mainland China The discussion was of a possible investment and no doubt the individual assets will certainly still be of interest

Maybe move in directly on those likely to fall under the control of the bondholders

[dijon52] 29/5/2020 08:05

https://www.intugroup.co.uk/en/news/news-and-press-releases/intu-outlines-plans-to-keep-people-safe-at-its-centres/

[hillofwad] 28/5/2020 11:44

With civil unrest in Hong Kong every likelihood that safe haven money will be arriving looking for a home .Perhaps LINK might be renewing their interest

Time is running out though to keep the £1.3bn bondholders sweet

[oldbronze] 28/5/2020 09:48

12p today ?

[goliard] 28/5/2020 09:06

Still some people betting on this staying alive by the looks of today's price action.

[goliard] 27/5/2020 11:44

I am a fan of actively seeking out alternate views on my position with any stock... but not alternate realities!

It is oddd to see retailers generally going up in value just because shops can re-open and it feels like their will be a massive impact on rent agreements. I think I posted before about tenants seeking rent reductions of 40% as some shopping centres. I am sure INTU shopping centres will survive, but not in their current form. Feels like it eeds to go in to administration, wipe out debt, reset rental levels and a new owner. That could lead to a landslide of rent reductions across the retail commercial property industry. In fact the only property companies I would touch now are Assura and PHP as the government is already on the hook for vast majority of their rents, but some of their pharmacy tenants are struggling as even though COVID has kept them busy the reduction in NHS fees over time is hitting them hard.

[zcaprd7] 27/5/2020 10:17

I'm not sure I agree, but he seems to have moved along for now.Intus are opening up now, tenants might start to pay rent, can they stave off the creditors long enough?

[goliard] 21/5/2020 12:47

A butter knife or a bread knife?

[monte1] 21/5/2020 12:22

Yes it will be interesting to note if bond holders can be swayed by the prospect of being offered shares in an unincorporated sub-continental sandwich shop?
The vote could be on a knife edge.

[hillofwad] 21/5/2020 12:08

Well there is a pincer movement in readiness for next months revaluation.

The set of £1.3bn(4 centres) bondholders have appointed investment bank Moelis who have probably lined up purchasers for the ringfenced Lakeside, Watford Nottingham and Braehead centres

LTV just below 70% in Dec 2019 on these so almost certainly slipped over the 80% giving breach and an opportunity to strike

In addition seperately Metrocentre bondholders which has already been breached looks like they have waited long enough for Rothschilds to get their act together are mobilising

Everyman for himself

However all likely to be frozen when Greg swoops in