Matrix European Real Estate Share Discussion Threads

[tim00] 15/4/2010 13:36

I agree with you Karl.

[karldinnel] 15/4/2010 13:31

Perhaps, but if you consider what MERE's balance sheet would look like post sale of IZD then its liabilities will be massively reduced and the share would be trading at a discount to NAV in excess of 50% even at today's price. That's just not right: should be a discount of 35% at most based on other similar property plays.

Current price is still factoring in risk to do with loan on IZD in my opinion...

[sul2] 15/4/2010 13:10

I think the rise has already priced in the sale. Since the first RNS on 22nd Feb, its risen from 80p-145p.

Volume yesterday was huge! Maybe something better off is in the offing such as a bidder?

[karldinnel] 15/4/2010 12:04

sul2. I think the IZD Tower is sold already in terms of the handshake on the deal. The article from the Austrian news service, TT, stated a couple of months back that Rene Benko has bought Vienna's biggest office complex...

However, I suppose that MERE has to be sure that everything to do with the transaction is absolutely covered before they can confirm. But I would be surprised to see an announcement now that says Benko has walked away. We'll see, as to when we'll see I don't know. Could be hours, could be days...

[zutalors] 15/4/2010 11:33

This also is positive for MERE given current strength in GBPEUR :

"The value of the Group's foreign-exchange hedging contract, which exchanges
EUR150.0 million for GBP101.3 million in June 2014 and EUR5.0 million to GBP3.7
million on a quarterly basis until June 2014, is a contingent liability of EUR50.4 million as at 31 December 2009 (comprising EUR36.0 million for the capital hedge and EUR14.4 million for the income hedge) compared with a liability of EUR44.2 million as at 30 June 2009."

[sul2] 15/4/2010 11:08

kardinnel, How long do you expect this to happen in? Thinking of buying.

[karldinnel] 15/4/2010 11:05

Kramch. The last time they issued an RNS in connnection with a share price movement was after I reported here on an article in the Austrian press that confirmed Rene Benko (a commercial property whizzkid in that country) had, in fact, bought the IZD Tower in Vienna from MERE.

I posted the link and the next day the share price put on around 40%. In response, Mere came out with an announcement saying that negotiations were continuing, but I suspect that that is just a case of dotting the i's and crossing the t's...

MERE is already de-risked in terms of its balance sheet in my opinion, but the sale of the IZD Turm removes another large debt burden and will net MERE plenty of cash too. Once that is done I don't see why the shares shouldn't move up to a 30-40% discount to NAV, i.e. reach 190-200p, in pretty short order...

[kramch] 15/4/2010 10:58

This share price move suggests someone's in the know, so the company needs to issue an RNS. K.

[karldinnel] 15/4/2010 09:49

One other thing I should mention is that we are 6th on the share leaderboard today. Another few pennies and we'll move into the top three, which are listed on ADVFN's front page.

That in itself could prompt some interest, so be prepared to explain why MERE is good value to newcomers, although I expect there will be a few trying to de-ramp in order to get in at a lower price (how you can de-ramp a share that is trading at such a discount to NAV I don't know, but I expect someone will try!)

[karldinnel] 15/4/2010 09:34

This share has almost doubled since I posted my link to the Austrian news service's article about Rene Benko and the IZD Tower a couple of months back...

Maybe worth trawling through the Austrian media again to find out what's up this time, but I reckon there should be an RNS soon...

[sammu] 15/4/2010 09:19

Looks unlikely to be anything to do with my post.

[mister md] 15/4/2010 08:59

move on move on, there is nothing to see here...LOL

[sammu] 14/4/2010 23:27

The possible offer for Atlas ATLS (Polish property) may have had a impact, even if it is at less than 50% of NAV.


I have a small exposure to ATLS.

[karldinnel] 14/4/2010 22:54

Well, presumably the IZD deal has finally completed, which means an RNS should be out soon, or another bidder for the IZD tower has come out of the woodwork, which means an RNS should be out soon.

One other possibility is that a number of investors have all independently arrived at the conclusion that MERE is a steal at its current price. But the lack of press coverage that this share has doesn't suggest that that is likely...

[asmodeus] 14/4/2010 18:36

Perhaps we're arriving - not just travelling hopefully?

[kramch] 14/4/2010 17:16

close at c. 122.5 suggests something's happening K.

[a75] 14/4/2010 13:50

all buys today, solid. and some better prices on the bid. tightest spread we have seen for ages. think something may be leaking

[tim00] 13/4/2010 06:02

sand dollar, yes, we agree!

[sand dollar] 12/4/2010 21:29

tim
I'm confused by your post, I thought I was agreeing with you, ie LBG sell when they are happy with the price,and MERE implement their share buy back programme when it suits them. These two events may or may not be connected.

[tim00] 12/4/2010 19:18

I haven't looked for the precise wording, but in what part of the capitalist world can a buyer dictate the price to an undistressed seller? I very much doubt MERE can buy the shares at any (market) price! (The MERE share price is not fixed - it moves from day to day!) Would you sell shares you hold on that basis?! I don't think so!

[sand dollar] 12/4/2010 18:07

kramch

Yes, MERE can decide to buy back shares at whatever price, but LBG may indeed have a price target they want to achieve.It has to work for both parties.

[kimboy2] 12/4/2010 17:38

That is what the agreement says.