Quadrise Share Discussion Threads

[robmal] 03/3/2011 21:10

Quintain Estates started with spec buy at Liberum, target price 55p.

[wendsworth] 02/3/2011 16:41

gbh2 : Have re-joined the party....on the basis of there being no smoke without fire! Hopefully it won't be me that gets burnt!

[hugepants] 02/3/2011 13:35

Punters started to nibble yesterday and the shares added 1.25p at 44.50p on an early jackanory that a private equity player had bid major shareholder Caledonia Investments at least 80p a share for its 10.6 per cent stake, prior to launching a full- scale cash offer for the company.

Read more:

[praipus] 02/3/2011 13:28

Laxey have quite a track record in driving share holder value. To that end I'm attempting to track their holdings in post 1 of the thread.

[quepassa] 02/3/2011 10:56

The Daily Mail article is interesting reading.

Unusually specific-sounding rumours in my opinion. Not that someone is looking to bid for QED but that someone is looking to take out a key shareholder, namely Caledonia.

Caledonia Investments remains QED's largest shareholder by far with a 10.63% holding of 55.34m shares. You could argue either way whether or not QED still meets Caledonia's stated investment criteria. Certainly their investment in QED will have decreased Caledonia's NAV over the last few years and will also not have done anything in helping Caledonia to increase its dividend.

Since the financial/property crisis, QED will have been a significant poor performer for Caledonia and will have underperformed many other UK property companies. Fund Managers don't like investments like that!

If a rumoured bidder is really in talks about offering Caledonia 80p+ a share for the 55m shareholding (around £44m), this is something which Caledonia would have to take seriously as per the following extract from the Objectives and Strategy section of their web-site:-




"Caledonia seeks to work closely and constructively with the management of companies that it has backed and to make available the considerable experience of its own team to help the investee company's management to address the business issues. The strategy for each investment, including the returns and the timing of eventual disposal, is reviewed regularly. Investments are realised when it is believed that the funds released can provide better long term returns, but in a manner consistent with Caledonia's reputation as a supportive long term investor."


One can also but speculate how blue-blooded Caledonia would view their new co-major shareholder, Laxey who has taken a 5.76% stake. Would Caledonia like to be brought into the lime-light as the most significant shareholder where Laxey, a noteworthy activist shareholder may or may not soon start to attempt to address the large discount to NAV through shareholder activism as many hope?

Curiouser and curiouser.

Perhaps just rumours, perhaps no smoke without fire.

ALL IMO. DYOR.

QP

[robmal] 01/3/2011 20:17

while vague bid rumours helped property developer Quintain Estates move up 2.9 per cent to 44½p.

[mreasygoing] 01/3/2011 17:16

On the brink of a breakout, 60p next stop.

[warmsun] 01/3/2011 16:34

your glasses are crystal clear MATHIS :-)

[mathisvale] 01/3/2011 16:33

Are my glasses misting up or has a breakout just occurred

[zoolook] 01/3/2011 11:35

Sorry. Did I just fart in the room ?

[zoolook] 28/2/2011 14:49

Does anyone have views on the current breakup value of QED ?

[scburbs] 28/2/2011 13:54

Some more details of the CBRE research.

Summary extracted below, but the deals section also well worth a read.

"In the last 2 years equity markets have recognised the opportunity to invest, both in scale and for good returns, in the residential investment and development market. Our research suggests funds have over £7.5bn allocated for residential development and/or investment.

The largest share of funds, at 70%, is allocated for Inner London. This is broadly split between prime and fringe; £2.5bn is earmarked for Prime Central London (PCL) and £2.8bn for schemes in London Fringe. This is up a third on last quarter.

Around a quarter of all funds are targeting Investment Stock. These investors will aim to acquire either newly built vacant stock or income producing stock. In addition, new players are looking to pre-commit to acquire bespoke developments for the Private Rented Sector (PRS) model. A further £2.7bn is earmarked for consented schemes that will exit via a sales route (to owner occupiers or investors). In addition, £2.9bn is allocated for speculative development without planning; this is favoured by funds interested in areas outside of London.

The level of investment available for residential stock could make a huge difference to current levels of house building. Forexample, the £5.3bn allocated to fund residential schemes in Inner London could, in theory, support the building of around 9,500 units."

[quepassa] 28/2/2011 08:17

Page 19 of to-day's FT leads with an article headed " Interest in London land soars. International investors look to inject £5bn..."

Can only be supporting news for Quintain's impressive London residential land-banks.

All IMO. DYOR.

QP

[911man] 24/2/2011 16:27

Must be a big buyer out there that will be shown later to withstand 800,000 selling since this afternoon?

[scburbs] 24/2/2011 16:05

Kramch,

I think they must have sold some as the QED RNS indicated £72m assets (not debt), so debt would be £33.8m if buying at NAV.

"ARP is a registered investment vehicle with £72 million of retail assets situated across the UK."

£72m of assets yielding 7% would generate £5.04m p.a., fees of 1.5% (£1.08m) and interest on the bank loans at 5% (£1.69m) would give an annual profit of £2.27m which would enable a 10% coupon to be paid to QED.

[kramch] 24/2/2011 14:50

If QED paid £10.7m for 28%, that values the fund at £38.2M.
Envestors say they have assets of £87.15M which, if QED bought in at asset value suggests debt of £49m. They only say in the blurb that there is an RBS facility of £71.5m. With an annual rental income I can't see how they are getting 10% net unless they are only paying 4% interest. Remember Egan Property Asset Mgt will want their cut, and if QED have a finger in the pie as well....
DYOR of course, K.

[scburbs] 24/2/2011 13:51

QP,

Agreed, 10% p.a. on £10.7m.

Your comment "assets yielding a whopping 10% with high quality tenants" made me think you were talking about the yield on the bricks and mortar which will probably be much lower than 10% given the high quality tenants and long average lease lengths.

[quepassa] 24/2/2011 13:15

Dunno.

RNS does say:-

"Quintain's investment in ARP is structured to provide a 10% annual paid coupon and a priority return on exit. "

It does say 10% ANNUAL PAID COUPON.

When I say assets, I use that term to incorporate fiancial assets ( ie shares in ARP whether in the form of ord or pref shares )and not just bricks and mortar. So it does seem to me from my reading that they will indeed be getting 10%pa on their £10.7m investment. - The company, ARP, is invested in the bricks and mortar assets with the desirable tennents as previously mentioned.

What is not clear is whether under the structure which you are presuming is pref shares (it sounds like they are but we cannot be certain from the basic info given ) is whether QED get paid out in priority at 100% of their investment ( ie they just get their £10.7m back as a priority share-holder) or whether they share in any potential capital uplift in the value of the underlying bricks and mortar as may an ordinary share-holder.

ALL IMO. DYOR.

QP

[scburbs] 24/2/2011 12:38

QP, I don't think the assets themselves yield 10%. QED have made the equivalent of a 10% preference share investment, but with a 28% share of any profits in excess of 10% as well.

[quepassa] 24/2/2011 12:08

Further excellent progress at Quintain on the fund management side.
If one of their stated aims is to provide QED with a stable income base, then finding and locking-in assets yielding a whopping 10% with high quality tenants is a great coup and a noteworthy achievement/milestone.

With early talks underway between CapitalCounties and major Hong Kong investors over the redevelopment of the Earl's Court site, it would seem not unlikely to me that sooner or later a major investor from overseas may equally start sniffing around Greenwich and/or Wembley with a view to a tie-up in one form or another with Quintain on these major projects.

All IMO. DYOR.

QP

[kramch] 24/2/2011 10:45

Albemarle Retail - this is from envestors.co.uk

Albemarle Retail Properties LLP (ARP LLP) comprises 5 existing LLP structures that are being merged into a single vehicle (ARP LLP) to take advantage of competitive interest rates and to de-gear the overall portfolio. New investors are now invited to take advantage of the opportunity to invest in an established national retail portfolio, comprising 156 properties presently valued at £87.15m with an annual rental income of £6m and c.10 years weighted unexpired term leases. A blue-chip tenant base includes major retailers such as Tesco, Sainsbury's, Waitrose, Boots, Comet, Travel Lodge, Costa Coffee etc. A new credit facility with the Royal Bank of Scotland (RBS) totaling £71.5m has been approved and £6m of new equity is now sought. ARP LLP is managed by Egan Property Asset Management, headed up by Geoff Egan who is a highly experienced in property investment and asset management, having formerly founded Egan Lawson in 1990. Investors are offered a mixture of coupon interest and share of asset appreciation.www.egan-pam.com

A 10% coupon sounds OK, and the debt stays off QED's balance sheet. QED don't have a retail fund of their own (but I don't know what's in Sequel). Must be a strategy in this move, any thoughts? K.

[scburbs] 24/2/2011 10:32

It is the attempted spin that is annoying. If you set yourself a target that doesn't mean you should use any method possible to meet that target. Each decision should be made on its own merits.

The deal itself looks ok given it provides a 10% income stream on the investment and I am assuming that they have surplus liquidity kicking around that will be needed later for the regeneration projects.

This looks like an investment to me and should be recorded it as such rather than pretending it is a fund that they manage.

[scburbs] 24/2/2011 10:23

Note to QED board, this is how it is done. A bit embarrassing having a real fund being announced on the same day that QED invest in someone elses fund which already has a manager whilst trying to claim that they have created a new fund!

This is the sort of thing they should have been doing with the SeQuel assets, but presumably there are no equity investors interested.

"Workspace Group PLC (Workspace), the leading provider of space to small and medium sized enterprises (SMEs) across London, announces today that it has entered into a joint venture (JV) with the BlackRock UK Property Fund to be known as the BlackRock Workspace Property Trust (BWPT).

...

The JV partners will commit up to £100m of equity into BWPT, with the BlackRock UK Property Fund committing up to £79.9m (79.9%) and Workspace up to £20.1m (20.1%). Once these funds have been committed there is the option for further investment subject to the approval of both partners. The term of the JV is five years with an option for two one-year extensions.

BWPT will initially be seeded with a portfolio of eight properties (for details see note 1) purchased directly from Workspace for £35m at a net initial yield of 8.2%. These properties are predominantly light industrial estates across London and the purchase price represents the portfolio's December 2010 valuation as determined by CBRE, independent valuers.

...

Workspace will receive a property management fee, together with a performance fee based on the relative performance of BWPT against the comparator IPD index and a minimum IRR of 10% pa over the life of the Trust."