Matrix European Real Estate Share Discussion Threads

[tim00] 16/3/2010 06:34

I'm guessing of course, but MERE has no incentive to sell IZD early - it's generating a lot more rental income than costing interest payments - and the next test of its banking covenants on IZD is not until end June. So I guess MERE has agreed to sell IZD, but not until a particular date. I would guess that date is now approaching however. Remember news first hit about the sale at the start of October! O/T WCC remains a very strong buy.

[karldinnel] 15/3/2010 17:27

Hmmm... not sure now is the time to be getting into Middle East property. The crash there is only just beginning, imo...

[sand dollar] 15/3/2010 08:49

If you get fed up waiting, here's another Matrix fund to try.

[tim00] 12/3/2010 14:39

ahh. So this is probably a non story. But it is a new entry, surely? It's not an exact copy of the previous article. Anyway, not worth discussing further I guess.

[zangdook] 12/3/2010 14:31

The article is undated. The page carries today's date.

[tim00] 12/3/2010 14:25

yes Karl, it does suggest that while the content hasn't changed, the story may have moved on.

[karldinnel] 12/3/2010 13:51

Don't see why they have published the same article and stuck a new date on it, though...

[tim00] 12/3/2010 13:50

doh! I thought I'd spotted a scoop. So Karl remains the guru.

[karldinnel] 12/3/2010 11:11

I've looked at it closely now and it appears to be much the same article. Nothing new...

[zangdook] 12/3/2010 11:00

Google translate gets some parts clearer:

Vienna, Innsbruck - Another prominent Viennese property is expected very shortly to René Benkos accident Hauptstadtbesitztümern. After the Tyrolean investor has already been incorporated with its Signa Holding the house Meinl am Graben, a former BAWAG headquarters at the Tuchlauben or the Länderbankzentrale, he now wants to buy Austria's largest office tower.

The IZD Tower, located directly next to the UNO City, rumored to change hands for 200 million euros of the owner.

"It is true that we have registered the purchase with the Federal Competition Commission," Benko confirmed to the TT. Details on the sales process and for the price but he could not call because of confidentiality had been agreed.

The tower was to him interesting because it has "extremely attractive tenants" and also a neighboring building already belongs to him, said Benko. Is the tower actually 200 million euros on the table, the Tyrolean investor should not make a bad deal: According to reports, the still-owners, the British fund Matrix, half a year ago still good 260 million euros for the IZD Tower paid.

The tower is among other things, home of the ÖBB (passengers and bus), the compound, the NH Danube City Hotel or the U.S. Embassy. On a total of 38 floors of the tower covers 63,000 square meters of office space.

Benko has invested so far indicated that around 1 billion euros in his Viennese projects. Statements about how he financed investments, those millions, there are of Benko not. Recently, he sit up by saying that he had invested since the company was founded ten years ago, 3.5 billion euros and still not lost a single cent.

When IZD Tower expects the Innsbruck real estate developer in the coming weeks with a commitment by the competition watchdog. "We are investing very selectively in Austria in attractive locations. There is a clear commitment to Vienna," said Benko.

[sand dollar] 12/3/2010 10:04

There will not be an RNS until the deal is completed and the money has been transferred, I don't think this confirms that this has happened, or am I wrong ?

[karldinnel] 12/3/2010 09:53

well done tim...

[geng] 12/3/2010 09:45

Why no RNS yet?

[tim00] 12/3/2010 08:11

hint: kauft means sold [edit: bought by him I mean, sold by us!]

[johnv] 12/3/2010 08:06

someone please translate

[tim00] 12/3/2010 07:04

beat Karl this time!

[tim00] 09/3/2010 08:19

no john, had other things to do. But I did briefly compare discounts to NAV on this thread, which suggested at least £1.60 was comparable value.

[a75] 09/3/2010 08:17

talking of IERE some bigger buys on there today and ticking up.. kept a frair frew but cashed some in for more MERE. anyone guess/know why IERE is moving these last 3 days?

[johnv] 08/3/2010 20:39

tim00, did you every run your slide ruler over IERE?...and compare it to MERE

[johnv] 08/3/2010 20:36

I also though this from iii posted by simms45 last friday was rather good:

"If and when the IZD tower goes through they will have in excess of £55m cash in the bank and a portfolio worth £360M (post IZD) at less than 70% LTV, virtually 100% tenanted on long terms, except some industrial space in Frankfurt that is 1/3rd empty.

All that compares to a mkt cap today of £46m."

[kramch] 06/3/2010 09:55

Have now seen this on iii, posted by "luxboy" which answers my own question;

"Share sale pre-emption agreement
At the same time as entering into the refinancing noted above the Group has also entered into a pre-emption agreement with LBG in relation to the circa 3.85 million MEREIT shares that they own. Should LBG decide to sell the shares it would be required to offer them first to MEREIT at a price equal to that achievable in the market and, if MEREIT agrees to purchase them, then it is anticipated that the shares would subsequently be cancelled."

Remember; European rents are still falling, vacancy rates high, and there are some not so great properties in this bag, eg Europort. It's a tenants' market at the moment, and we have management cost which will now have to be spread over a smaller rent roll. K.

[kramch] 06/3/2010 00:36

I have now had a look at the presentation, it gives a good indication of their priorities, degear, hedge interest rates forward to 2014, extend FX hedging, share buy backs, then divi.

The most pressing need seems to be to enhance the Europort, Duren to Nice sites to keep tenants and attract new ones.

And share buy backs would be a far better use of funds at the current discount than a dividend. K.

[tim00] 05/3/2010 19:01

kramch, that's pretty much the story. Personally I doubt that a price for the LBG shares has already been agreed, but that's a guess, others think it has. The only negative is Europort, which is their largest building after IZD and which has a high vacancy rate of 31%. However, nearly all other buildings have full occupancy, long leases and no rent arrears. Debt and liquidity are both excellent, the only other negative is that the Directors are cautious souls and won't reinstate the divi for a while longer. On the plus side, this means a seriously diluting share issue at a knock-down price is not going to happen, because cash from rents continues to be accumulated.