Invista EUR Prf Discussion Threads

[gary1966] 01/5/2014 07:12

Well there it is. Doesn't look too shabby as long as the company can get the disposals done. Preference share dividend now being accrued which is a bit of a pain though.

[soi] 01/5/2014 07:12

RNS just out :

" The Board of Invista European Real Estate Trust SICAF ("IERET" or the "Company") is pleased to announce that it has entered into a new credit facility (the "New Loan") with Blackstone Real Estate Debt Strategies ("BREDS"), an affiliate of the Blackstone Group LP ("Blackstone") in an amount of EUR220 million. As a result, it has repaid all outstanding amounts due to Bank of Scotland, the economic interest of whose loans to IERET had been sold in November 2013 to funds affiliated to Cerberus Capital Management, LP.

Terms of the Refinancing

The New Loan has a maturity of three years, with an option on the part of the Company to extend for two additional twelve month periods, subject to certain conditions. The initial margin is 770bp over three month EURIBOR, with an agreed path for a potential reduction to 470bp as set out below ........."

Unfortunately they will not be paying the dividend on the prefs, interest being accrued until such time their target debt reduction is reached.

Details in full in the RNS.

[envirovision] 30/4/2014 13:52

They are certainly keeping shareholders in the dark

[kenny] 30/4/2014 12:56

Agree with that Gary, except if they are still negotiating we may only hear the sound of silence!

[gary1966] 30/4/2014 12:28

Given that the existing loan facility expires today I would have thought that we should get some sort of announcement at the latest tomorrow morning.

[envirovision] 06/4/2014 11:29

Eu central bank is talking about a real version of qe now, this will make eu property portfolios the dish of the day.

[kenny] 05/4/2014 22:16

..and in the above vein, note this comment from the Chairman of Cerberus Capital Management from the article linked below:

"Cerberus is a patient, long-term investor and has a well-established track record of making significant improvements to the assets that it manages."

hxxp://costarfinance.com/2014/04/04/cerberus-beats-pimco-to-win-namas-project-eagle/

[kenny] 05/4/2014 22:07

With this massive deal by Cerberus, mentioned below, maybe they will forget that IERE owes them a few bob!! Seriously though, it would be stupid to start forcing a liquidation of property by calling in loans, when they have so much riding on property prices in European property markets. Better to play the long game and allow property prices to recover rather than flooding the market with distressed sales.

"Cerberus clinches massive Northern Irish loan portfolio deal

New York-based private equity firm Cerberus Capital Management has bought the £4.5 bn (€5.4 bn) Project Eagle loan portfolio from Ireland's National Asset Management Agency in the largest single transaction by NAMA to date."

[kenny] 01/4/2014 18:38

Buy of 50K @ 59p. I wonder if that was a private investor - own up if it was you?

[loobrush] 27/3/2014 10:51

AGM tOMORROW

[xxx] 17/3/2014 16:39

Having looked at the situation and thanks to Kenny for the helpful posts,I have joined you here.[ via my ISA]
By my estimation last yr they paid a touch over 7% for the bank borrowings.With the sales and the 70% LTV intact,I feel hopeful that they will get a 7 or perhaps 8 outcome on a new facilitiy. If not,by my reckoning I have a 17% margin of safety [although that disregards the fees and charges a new lender may levy/the costs of a windup which would be high and the drawn out timeframe of a windup].
ps.I would say I am pretty clueless regarding commercial prop., but a bit less so now.Anyhow all will become clear over the next 6/7 weeks.

[envirovision] 05/3/2014 17:28

That bot is mopping up any sells that come in with a 59p bid again, the ords have shot up, I wonder if there is some sort of deal reaching conclusion.

[bandit99] 05/3/2014 15:39

IERP are in my ISA as of a couple of days ago

[skinny] 05/3/2014 12:16

Yes quite right.

edited!

[kenny] 05/3/2014 12:11

That's on the ordinaries, not the pref's.

[badtime] 05/3/2014 12:10

Good to see the spread narrow

[jt35] 05/3/2014 08:27

According to a recent thread on fool.co.uk these are able to be held in an ISA as they pass the 5% rule, excerpt below

The 5% rule itself is set out in para 7.39 :

"The 5% test

7.39 The 5% test is satisfied if, at the date of purchase

? there was no guarantee or agreement that the investor would receive 95% or
more of their purchase price at any time in the next 5 years, or

? the nature of the investments held did not significantly limit the risk to the
investor's capital to 5% loss or less at any time in the next 5 years

All information available at the time – sales literature, terms and conditions, etc –
must be taken into account in determining whether the test is satisfied."

The 2nd criterion (limit risk to 5%) should be fine for IERP - there's a distinct chance of a substantial loss

I think the 1st criterion rules IERP out of ISAs - there is a clear agreement that the investor will receive EUR 1 in Nov 2016 against a current purchase price of around EUR 0.6. But I believe there would be no objection to holding them in a SIPP.

[blueliner] 04/3/2014 17:50

CWA1, sorry cannot provide an answer as I'm also been puzzling the same thing re ISA holdings, though Hargreaves Lansdown appear to let you include the pref stock in their Vantage ISA, plus cannot ascertain what the current dividend yield is, if there are any payouts.
Thanks for any info.

[cwa1] 04/3/2014 17:38

Evening All

Can anyone give a definitive answer as to whether or not IERP can be held in an ISA or not. Mine are held in an ISA but a post over on TMF suggests they shouldn't be eligible. I knew that bonds with a duration of less than 5 years were ineligible. Is it the same for pref shares as well?

Cheers for any input.

[badtime] 21/2/2014 18:05

I noticed having read the PE thread after posting here :)

Have a good weekend yourself...if i can get some sleep this weekend (bad cold/cough), i'm up to the peak district for a few days next week..the week after is the start of my nine month slog of maintenance work :(

[skyship] 21/2/2014 17:57

BT - have a good weekend. Incidentally, I found another PE trust to buy today - CDI - posted on the PE thread. Seems to be good value...

[badtime] 21/2/2014 17:54

Ta sky...i think u did the sensible thing and nibbled ...then added a few more into the rise...whats encouraging for you is that its continued..its best not to be too greedy..those who bought in the 80's last year and had the nerve to hold will just be pleased there paper losses are decreasing...to get to 70 will be a good achievement and thats my target as at this moment in time

[skyship] 21/2/2014 17:50

BT - They are still cheap and quite naturally I'm kicking myself for not buying a higher allocation. I suspect I'll let them run and take a chance with the refinancing news in a couple of months time; so more likely to add than sell...though 75p would likely see me out!

[badtime] 21/2/2014 17:44

Sky whats your target on these short term..i presume u might sell half and play with the rest as its 'punt' money :)