The Local Shopping Reit Share Discussion Threads

[strathroyal] 18/6/2017 10:55

Tilts,

Do you know how many properties are left at the moment as I'm getting a bit confused. I agreed with Skyship's post 2270 that there were 233 left prior to the Pugh sale and that should have left 216 after the Manchester and Leeds auctions.

However, the recent update says that 104 properties have been sold under this process which would leave 223. Not a great difference but Internos' figures don't seem to tally from time to time.

Incidentally, lot 114 at Pugh's sold after the update so that's another one gone and only three appear to remain from the last round of auctions (Hull, Montrose and Stoke).

[hillofwad] 18/6/2017 10:19

Lot 49 Exmpouth Nice little town .However LSR can't even be bothered to provide the auctioneers some basic info on the flats which produce the bulk of the income

Again poor asset management as one of the tenants has been holding over on an expired AST for more than a year Recipe for disaster to an incoming buyer
The empty flat which hasnt been inspected Is it ready for immediate occupation no ERV !. Is it safe to assume a similar income to the others ?

Difficult to see this bettering £600k and poorly presented by LSR to get he best possible price Its a long way to go for an investor for an abortive visit

Lot 140

The tenant in the flat has been holding over since 2011!!!!!!!!
I think £1.25m is a more realistic target Lets hope I,m proved wrong

[frazboy] 18/6/2017 09:41

In terms of the big picture only lots 49 & 53 matter and it will be interesting to test market appetite post/(pre) election

Splitting hairs a little but you may have included the rent of the empty flat in Lot 49 and failed to include the rent of the empty shop in 53.

Regardless, with a yield of 9.5% I would expect around £1.3m, but as the pattern seems to have been the nicer properties going for a premium and the cheaper ones for a discount I would also hope for the £1.4m figure.

[tiltonboy] 17/6/2017 23:06

Four Lots that I can see in the next Allsop auction, including three from the SW portfolio which suggests to me that they are upping their game.

Lot 49 - 2 shops (including a Coral) and 5 flats, with a rent roll of £68k

Lot 53 - 4 shops (one vacant) with a rent roll of £36k

Lot 80 - Shop + flat in Hull with a rent roll of £12k

Lot 140 - Shop + 2 flats with a rent roll of £10.5k

Hopefully they will make £1.4m+

[tiltonboy] 08/6/2017 14:17

strath,

Some of the stuff that went through to auction was previously intended to be sold by way of Private Treaty. The bookies that went through Acuitus and Allsop would be a point in case.

[strathroyal] 08/6/2017 13:35

Those five made £265k against £210k reserves so hopefully not too far off book value. The number of properties going through the auction does suggest Internos are ahead of schedule and they have certainly offloaded a good number of the smaller properties.

Looking back at the road map, the only question I have is that the private treaty sales in value seem to be a lot lower than we were led to expect but presumably that again suggests they are concentrating on disposing of as many of the below £200k as practicable.

[tiltonboy] 08/6/2017 13:13

strath,

Yes, I noticed the logo disappear this morning.

First two unsold which was a bit unnerving, but the other five went, in aggregate for a little bit above guide.

[strathroyal] 08/6/2017 09:33

Tilts - Re our discussion earlier this week re Lot 82.

For today's auction I originally had 7 LSR properties on the list but I see that only 4 have the LSR logo on display. Do you know the exact number being sold?

My original list was 104, 114, 114a, 129, 130, 131 & 132.

[gfrae] 08/6/2017 08:42

The initial idea was to hold back the bigger and easier to sell properties until last so that they would provide income to cover interest and running costs while the harder to sell properties were disposed of. That seems sensible to me.

[tiltonboy] 08/6/2017 08:15

I think Internos have recognised that the auction process has generally been favourable, and it is evident that they are pushing more through than originally planned. Whether they go a step further and put some of the bigger assets through, I'm not so sure.

Not long until we know.

[skyship] 08/6/2017 08:00

Tilts - as per yr 2269 above and in view of the Acuitus email below, hopefully Internos will lob in one of those £1m-£3m properties in the July auction:
=========================================================================

Acuitus prepares for July auction as larger lots find favour
 
The next Acuitus auction will take place on July 13th at the Radisson Blu Portman Hotel, 22 Portman Square, London W1H 7BG.

To discuss entering a property into the sale, please contact one of the Acuitus team.

THE CLOSING DATE FOR ENTERING PROPERTIES INTO THE AUCTION IS WEDNESDAY 14TH JUNE

At our May auction, larger lots of £2m+ proved particularly popular and there is a clear and growing market for this scale of asset. 

Acuitus auctioneer, Richard Auterac, comments: “The larger lot size bandwidth is where there is probably the most sustained demand from investors, and we are showing that our sales can provide a quick and effective route to market which realises value.

“At our last sale, six lots sold for £2m+ and the sale prices reflected yields of between 4.1% and 7.8%.”      

Acuitus Director, Charlie Powter, is also available to discuss how private treaty and auction sales of portfolios and individual assets can be integrated into an overall sales strategy.

[tiltonboy] 06/6/2017 15:35

strath,

I also had it on my list, but it doesn't show up at Pugh as one of ours. Eversheds are also the solictors. I will ask next time I speak to Internos.

[strathroyal] 06/6/2017 15:12

Tilts,

I've got Lot 82 as LSR as well, is that not so? It's on the Project Renouvier list.

[tiltonboy] 06/6/2017 14:47

Final few:

Lot 86 - Guide 37.5k - bids reached 35k, but I'm sure they will take that
Lot 90 - Guide 75k - fetched 75k - disappointed with that one
Lot 92 - Guide 80k - fetched 114k
Lot 93 - Guide 75k - fetched 95k


Overall it looks like a good auction. If the "refer" property goes through, it looks like £1.093m raised against 792.5k guide.

Hopefully not too far away from book, and a further 11 small properties sold.

On to Leeds on Thursday with 6 more properties.

[tiltonboy] 06/6/2017 13:55

Pugh Manchester

[skyship] 06/6/2017 13:46

Tilts - a bit behind events - which auction house are we in today?

[tiltonboy] 06/6/2017 13:15

Lot 30 - Guide 75k - fetched 83k
Lot 31 - Guide 40k - fetched 46k

[tiltonboy] 06/6/2017 13:08

I'm not too certain about Lot 12. I think the property had some issues, but any writedown if there is one, will be a lot smaller given the price achieved.

[strathroyal] 06/6/2017 12:51

Great start Tiltonboy, these four have gone for an average of 50% above reserve, surely that's above BV.

[tiltonboy] 06/6/2017 12:43

Good start on what looked to be two difficult properties.

Lot 11 - Guide 80k - fetched 128k
Lot 12 - Guide 190k - fetched 305K

Lot 15 - Guide 95k - fetched 148k
Lot 18 - Guide 45k - fetched 64k

[tiltonboy] 02/6/2017 20:07

Yield on Uckfield property was 6.5%, so yield on the other property is obviously 8.5%, and indicates nothing more than that.

It is clear that they are retaining the bigger assets with a view to selling them in one go. It will be interesting to see how close to book they get. In saying that, im sure they would sell if they got an unsolicited and attractive offer for any of those assets.

In terms of your final comment, I hope they earn a huge fee...

[hillofwad] 02/6/2017 19:45

TILTS
Yield has fallen to 7. 5% on the 2 x £3m + which indicates that the opinion of price has risen ? Why do you think they haven't placed these in Auction? Certainly make up for a lot of the tiddlers valued at 10.9% Be interesting to see if they make that at Pugh Auctions


Admin expenses are approximately 30% of rental income ! If this was farmed out to a professional practice it would be less than 10%
SKYSHIP

DONT FORGET THIS IN YOUR CALCULATIONS

A terminal fee of 5.7% of cash returned to the Company’s shareholders in excess of 36.1 pence per share per annum
from the Effective Date outside of dividend payments (the “Terminal Fee Hurdle”). The Terminal Fee Hurdle rises by
8% per annum after the first year but reduces on a pro-rata daily basis each time equity is returned to shareholders
outside of dividend payments from recurring operating profits.
Under the terms of the agreement Internos received a fee of £513,000 (September 2016 - £963,000,461 March 2016 -
£510,000)

[tiltonboy] 02/6/2017 14:40

That would do me.

[skyship] 02/6/2017 14:24

Thnx for that Tilts - 233 properties remain with plenty in the upcoming auctions - so could be down to that 200 figure ahead of schedule.

My target is to net out at 38p by end 2018. From 32.5p that provides a GRY of 10.4%; obviously with potential upside to that 38p.....so very happy to hold.

[tiltonboy] 02/6/2017 11:24

The interim report has now been posted to shareholders, and while there are no major points, there is confirmation of a few things. Together with knowledge of sales in April and May, the updated position looks a little like this

Lot size 0-100k - Good progress has been made here with 83 properties remaining, down from 143 at year end. There are a decent number in Pugh next week, so hopefully this number will fall quite a bit further.

Lot size 101-200k - Also good progress, with 64 properties remaining out of 90 at year end.

Lot size 201-500k - 64 properties remain, down from 76

Lot size 501-1m - 13 properties remain, down from 18

Lot size 1m -3m - No sales, so 7 remain.

Lot size 3m+ now number two. The yield has risen to 7.5% which suggests that a property yielding 8.5% is now above the threshold.

I believe that Internos acknowledge the progress being made, and appear to be ahead of the roadmap set out in the finals. Lets hope this continues.