Property Recycling Share Discussion Threads

[cockneyrebel] 28/12/2005 17:56

I expect so

CR

[tole] 28/12/2005 17:47

Wonder if we will get an update sometime soon since from the results they did mention further news :)

"I am confident that the prospects for your company are good and I look forward
to reporting further progress in the coming months."

[tole] 28/12/2005 17:45

Still creepin higher...
Nice little article today :)

Record Number of Property Companies Go Public in U.K. This Year
Dec. 28 (Bloomberg) -- More real estate companies listed their shares for trading in the U.K. during 2005 than in the previous seven years combined as they raised almost 2 billion pounds ($3.5 billion) to take advantage of investor appetite for property.

At least 20 real estate companies went public on the London Stock Exchange or the Alternative Investment Market, compared with 19 between 1998 and 2004, according to Bloomberg data. The Ottoman Fund Ltd., which starts trading today, raised 150 million pounds from institutional investors at 100 pence a share to invest in Turkish residential property.

Britain is Europe's largest commercial property investment market and the London exchange is the easiest for new companies to raise money. Fourteen of the 20 new companies don't do business in the U.K., half operate in former communist Europe, and seven are from Bulgaria, where talks on European Union membership in 2007 have helped fuel house prices. None are covered by analysts.

``The danger of these stocks is that if you are trading in the dark the pricing won't be perfect,'' JPMorgan Chase & Co. London- based analyst Harm Meijer, who doesn't cover any of the new real estate companies, said in an interview. ``I am surprised how much money they have managed to get into their hands this year.''

Shares of all but two of the new real estate companies have climbed since their initial public offerings. The best performer has been Property Recycling Group Plc, based in Norwich, eastern England, which regenerates previously used sites. Its stock has gained 30 percent since the shares started trading in June.

AIM

Property Recycling was among 318 companies that listed on AIM this year through Dec. 16 and raised 5.2 billion pounds in share sales, according to a statement from the London Stock Exchange last week. Fourteen real estate companies accounted for a quarter of the total raised, according to Bloomberg data.

The property-related figures exclude 166 million pounds raised since then by Ottoman and China Real Estate Opportunities Ltd.

Ely Property Group Plc, a Dublin-based business that owns student accommodation, was the only company that didn't raise new capital when its shares became publicly traded for the first time.

On the main market, 77 companies raised 9.7 billion pounds in IPOs, the exchange said. Three property-related companies and closed end funds raised 454 million pounds.

There are 91 real estate companies and closed end funds listed in London, with 24 joining the two markets in the last two years.

`Irrational Exuberance'

None of the companies listing for the first time this year initially offered shares to individual investors, preferring to place stock with institutions, such as pension funds and insurers. Some investors are still concerned that the companies aren't covered by analysts and the stocks don't trade frequently enough.

Standard Life Investments, Scotland's largest money manager, has only bought shares in Hansteen Plc, which invests in industrial property in Europe. The stock has risen 23 percent since it started trading Nov. 29.

``We have been cautious for quite a few months on quoted property companies and we have been wrong,'' said Harry Nimmo, who oversees about 1 billion pounds as head of smaller companies at Edinburgh-based Standard Life. ``It has not quite got to the bubble stage, but there are definitely signs of irrational exuberance.''


To contact the reporter for this story:
Peter Woodifield in Edinburgh at [e-mail]

[cockneyrebel] 20/12/2005 17:52

very decent trades today, I wonder if there's news around?

CR

[tole] 20/12/2005 16:45

Yep agree - Better volume today and a small move up on the bid...

[cockneyrebel] 15/12/2005 10:23

looks like the bored are out now - couple of buys today, next leg up due imo.

Year end in a fortnight.

Lumpy earnings, 8p eps in H1 - don't need to do much in H2 to make these look very cheap imo.

CR

[onlyonestorm] 28/11/2005 10:39

Hello - still trying!!

Can anyone give, or know, where we can find info about buying a property with funds held in an Investment Club.

Stormy

Re-Posting to top of threads!!!!!!!

[onlyonestorm] 26/11/2005 10:02

Hi - Can anyone give, or know, where we can find info about buying a property with funds held in an Investment Club.
Thanks in Advance

Stormy

Re-Posting to top of threads!!!!!!!

[onlyonestorm] 25/11/2005 12:53

Hi - Can anyone give, or know, where we can find info about buying a property with funds held in an Investment Club.
Thanks in Advance

Stormy

Re-Posting to top of threads!!!!!!!

[onlyonestorm] 25/11/2005 11:09

Hi - Can anyone give, or know, where we can find info about buying a property with funds held in an Investment Club.
Thanks in Advance

Stormy

[cockneyrebel] 23/11/2005 15:13

looks like the bored are selling today - I like to buy from the bored and sell to the excited.

CR

[affc21] 20/11/2005 20:58

Tole,

Thanks for posting the above articles.

As regards the Ipswich waterfront £500m facelift,would be interesting in what capacity PROP are involved (some future land redevelepment deal or just an advisory role) if any.

At least PROP under Paul Rackham's property and business building experience and contacts,are on the prowl to sign brownfield/land redevelopment deals,I think it was mentioned that they wanted ten redevelopments to be on the go,at any one time,as apposed to four on the go at present.

It should bode well for the share price,as and when any news is released in the public domain.It makes you think a deal must be on the horizon,considering its been quiet of late.

[cockneyrebel] 20/11/2005 17:24

Doesn't seem to be one Tole, doubt they have much use for one - yet anyway.

7 weeks sinve the director buying so could be some news soon, hasn't been none receny as they would have been seen as insider dealing imo.


A repeat of H1 eps in H2 won't half makes these look cheap I'd say.

CR

[tole] 20/11/2005 17:07

Anyone got a company website address? Cannot seem to locate one at the moment...

[tole] 20/11/2005 16:32

Worth a read - always nice to see those 2 words 'HUGE POTENTIAL' :)


Waste not, want not
By Deirdre Hipwell

"We have 170,000 acres of brownfield sites doing nothing. There is huge potential"

Paul Rackham, Property Recycling Group
Postscript:

As a rough guide, allow for about 15 minutes and several near-death experiences to reach the offices of the Property Recycling Group in Bridgham, Norfolk. The kamikaze pheasants running across the road from Thetford railway station are not to be trifled with at high speed.

Nor it seems is chief executive of the group, Paul Rackham. The company floated on AIM in June, raising £6.9m, and in the same month, posted a £2.3m pretax profit in its maiden interim results as a quoted company. The results were swelled by the sale of a former sugar beet factory at Saddlebow Road, King's Lynn, to Morston Assets for £3.5m in July.

The company 'recycles' brownfield land by demolishing existing buildings and treating contaminated land. Although it is still small and has a £17m portfolio of just five properties in East Anglia, big plans are afoot. It has an £8m cash balance, a £20m borrowing facility with Lloyds TSB and recruited former Savills head of commercial space Ben Steward as property director this month to progress a UK-wide expansion.

Where there's muck

Rackham first attracted the attention of the City of London when he started his Waste Recycling Group business in 1983 to provide waste recycling in East Anglia. It became the largest independent listed waste management company in the UK after it floated in 1994. In 2003 Waste Recycling Group was bought by Guy Hands' Terra Firma for £513m, and later that year Rackham made The Sunday Times Rich List.

A 'feeling of restlessness' led him to set up Property Recycling Group, despite being 69, and he has turned his hand to brownfield sites because he believes waste management has lost its way, being neither cost-effective nor environmentally beneficial.

He also believes that development pressure on finite resources and government directives on greenfield sites means property recycling has a bright future. 'We have 170,000 acres of brownfield sites in the UK sitting doing nothing. There is huge potential,' he says.

Rackham leads the management team at the group with his son Paul, chief operations officer; Stephen Stuteley, finance director; and Ben Steward. Sam Wauchope and David Weir are non-executive directors. Property Recycling Group's office is a restored barn on Rackham's 1,200 acre (485 ha) Manor Farm that produces vegetables and beef for Morrisons and Waitrose. Savills will remain the group's valuer.

The group owns five freehold sites in East Anglia totalling 650 acres (264 ha), which produce £400,000 in rent a year from small-scale industrial tenants. The sites are in various stages of improvement and all have industrial planning consent.

A 94 acre (38 ha) former airfield at Stanton, Bury St Edmunds, is under option until December 2007 to Ikea. The retailer has not exercised its option, but has paid all planning application costs.

Rackham says Property Recycling Group is looking at sensible expansion in the UK, and always has at least 10 sites under evaluation. The group is 'seriously considering' two sites and expects more opportunities to come from the sale of redundant Ministry of Defence sites. He says providing affordable housing sites is another 'juicy opportunity'.

Land values

While the group has years of experience taking on complicated sites, Rackham says it will outsource and consider joint ventures, but has no desire to become a property developer.

He sees brownfield remediation as a no-risk industry. 'All our sites have planning, which we improve on,' he says. 'The underlying asset – the land – is sound, and is not going to be worthless unless there is a property crash.'

Property Recycling Group is also cautious about its borrowing profile. 'We try and get as much income from the site to cover operating costs during remediation, and we don't capitalise our interest,' says Rackham. 'We are long-term players and I am not in favour of selling sites fast to make a quick buck.'

The market says Rackham is a tough operator who has handled 'some difficult' times in his career. Tom Harrison, joint managing director of Morston Assets, says: 'We had a successful transaction with Rackham. I knew him from his waste-recycling days.'

But those days are long gone as Property Recycling Group gears up for new business.

'I guess I had to stop being the country playboy sometime,' sighs Rackham.

[cockneyrebel] 05/11/2005 12:04

Sorry, not sure Graham.

PROP gets a big 2 page tabloid coverage in Growth Company Investor today - great article and as suspected above :-)

CR

[graham_brown1] 04/11/2005 23:32

Would shares in this AIM company count as 'business assets' in relation to CGT ie. qualify for business asset taper relief?

[tole] 02/11/2005 10:06

Looking to breakout from here :)

[affc21] 01/11/2005 20:09

Thanks CR,

Next few days could be interestig then.


Looking good from here,
affc21

[cockneyrebel] 01/11/2005 20:00

If that "see page 24" is on the website I suspect it's out tomorrow - SMC was in the last copy which came out the day after the posted the long tip on the website.


CR

[cockneyrebel] 01/11/2005 19:44

me too :-)

CR

[affc21] 01/11/2005 19:02

Peter Webb's Unicorn Asset Management has almost 15 per cent, and New Star Asset Management's well-followed fund manager Patrick Evershed is another keen backer of PROP.