The Local Shopping Reit Share Discussion Threads

[hillofwad] 29/8/2018 12:07

One thing is for sure it certainly seems that they haven't been saving the best til last!

[hillofwad] 29/8/2018 11:51

Must admit never come across Landwood before ? Must be really bad that even the e-cigarette shops has gone west who are the most active occupiers in Valley towns recently

Surprised that they didn't place this auction more locally like Paul Fosh in Newport or Seels in Cardiff

Wouldn't want to hazard a guess where this might end up but shall we have a bit of a comp to see who comes closest ! Unsold not being available!!

I am going for £59k !!!!

[jeff h] 29/8/2018 11:24

Never held here but the company interested me at one time.

Another LSR auction lot:-

[hillofwad] 28/8/2018 19:02

LOt 12

Good news is that the tenant has spent some some money on the fit out.Plenty of chairs for sub-letting if need be its what they usually do Its a good spot and the rent looks okish Should imagine though that this might be standing quite high in the books

Agree £100k looks about spot on

[tiltonboy] 23/8/2018 13:27

That's what mates are for!

[skyship] 22/8/2018 17:41

Lot 12 - Looks as though you may be bidding against John Major - see photo no.1

Seriously though, that £85k looks way too cheap; likely to go for nearer £110k IMO

[tiltonboy] 22/8/2018 15:53

Might be bidding against other...lol...

[profitaker] 22/8/2018 14:41

Just had a quick look Steve and lot 12 caught my eye.

[tiltonboy] 22/8/2018 13:25

Might bid on Lots 12 & 17 myself

[tiltonboy] 22/8/2018 13:08

They are. You going to bid on any of them?

[profitaker] 22/8/2018 11:21

Are these all LSR properties ?

[tiltonboy] 22/8/2018 10:27

Over £3m of kit on there. Lets hope it goes as well as the last one.

[strathroyal] 22/8/2018 09:18

Properties for the next online auction are now on the Allsop site. Going to be a busy day selling 17.

[strathroyal] 09/8/2018 11:57

Seem to be preparing for another online auction, Allsop site shows 17/09 but no props yet.

[frazboy] 09/8/2018 11:12

Not sure what news that could be Tilton. Only news that I'm expecting that is material is the discount to NAV of that bunch of assets they've flagged as being subject to contract in several recent RNSs - if the discount is modest then there's a penny or so if upside from here. We shall see

[tiltonboy] 09/8/2018 10:47

A flurry of activity on Tuesday, and even more so today with the SETS board seeing the trades. Just hope somebody knows something!

[hillofwad] 18/7/2018 09:01

I think LSR have escalated the sales process as there is still plenty of blood in the High Street Last summer with a partner we bought an attractive ex bank occupying a prime 100 % corner position in a small town .
It had been empty since Feb 2016. We ended up paying 25% !!!of the original asking price which wasn't particularly high in the first place !The best we are able to do is let to a local charity on a low rent and just got planning to convert the upstairs to a 2 bed flat

[gfrae] 18/7/2018 08:34

Hopefully in the case of LSR that is an academic question ,HOLTS.

[holts] 18/7/2018 08:27

Do you not think the overwhelming pressure from tenants and potential tenats will be for considerable rent reductions ? particularly anything retail , the nonsensical rate review which has flown in the face of market pressures along with declining footfall can not be ignored by landlords .

[hillofwad] 18/7/2018 07:40

The rent on unit2 compared to others is massively overented. They have a break clause in August terminating their tenancy in November which puts the tenant in a very strong bargaining position

Unit 1b It looks as if the development was built in 1990 when 25 year leases were the norm

We would certianly want to speak with them before committing to see their intentions
I would be very surprisied that LSR haven't had that conversation hence their keenness to get rid of the asset first before August.Perhaps this would explain why this hasn't sold yet?

Ground Rent

The problem is that irrespective of the level of occupancy rain ,wind or shine if rental income and occupancy levels reduce you still have to pay it It doesn't sink in synch . High Risk of the bank vacating on lease expiry

So looks cheap but certainly comes with high risk factors !

[alanji] 17/7/2018 17:54

Ah I see, the vat can be reclaimed, yes? The ground rent is stated to be upwards only to 10% of the gross rentals. So presumably it would not increase unless the gross rent was over £140k.
I would be looking more closely at the individual leases were I to buy. What makes you think unit 2 would drop to 10k if renewed? Unit 1b looks strange - approx 25 years from 1990???

[holts] 17/7/2018 17:52

Sold out day before Brexit on basis of declining values if vote went as it did , they have generally done better than I thought they would though , although the final result is still open to question .

[hillofwad] 17/7/2018 16:17

Alan

Unfortuanately yes We will have to get it VAT registered and time the completion to coincide withe end of the VAT quarter so as not to be exposed for long

I can see why buyers are a bit reticent as you are stuck with an upwards only review on the ground rent on an overrent . Should it really get blighted in the future you are stuck with it

On Unit 2 they have got you by the proverbials its either Goodnight Irene or a massive haircut on the rent Probably £20k down to £10k pa So really wouldnt want to be paying much over £500k

[alanji] 17/7/2018 15:01

That actually looks quite an attractive proposition, hillofwad. However, vat is payable so does that mean the cost is actually 600k? Also ground rent of 14k is payable.