Quadrise Share Discussion Threads

[scburbs] 01/7/2013 10:19

Thanks QP, does look like potential good news.

If they can pick up 7 year debt at less than 5% then they should get it (even if it is more expensive than the current debt). Taking out longer term debt would give them greater flexibility on accelerating development without being forced into immature asset sales like the Hilton (key candidate to not sell prematurely being LDO).

"The bond, if it is pursued, is expected by the market to be issued on a term of around seven years at less than 5%, in line with other recent issues. It would be secured against its entire portfolio, rather than a single asset."

Source: Property Week

[quepassa] 28/6/2013 12:47

According to Property Week, Quintain are sizing up the bond market for £200m boost to reduce borrowings and extend debt terms





If this is the case, very positive news which would help push out maturities, diversify funding sources away from bank funding markets and further strengthen QED's balance sheet.


ALL IMO. DYOR.

QP

[quepassa] 20/6/2013 13:57

Yesterday's stunning results from London-centric house-builder Berkeley indicate a very strong London market with surging house/flat prices.

Once Quintain's Greenwich Peninsular pipeline of high-end flats directly opposite Canary Wharf start to come on stream, resulting development/sales profits may well be significantly higher in my view than built into their financial modelling forecasts and assumptions.

At some point,surely not too far away, there will be an inflexion where the land-bank valuations of Quintain's London sites start in my opinion to be revalued significantly to the upside.

ALL IMO. DYOR.

QP

[scburbs] 19/6/2013 10:04

Rampant demand for London redevelopment sites continues unabated. The level of Chinese/HK investment into London is huge. If only the Chinese liked football a bit more!

"A Chinese development and investment company has bought a slice of London's Vauxhall Nine Elms Battersea Opportunity Area, SW8.

Dalian Wanda Group has bought the Market Towers site - known as One Nine Elms – its first property investment project in London."

hxxp://www.egi.co.uk/news/article.aspx?id=768521

"Derwent London plc ("Derwent London"/ "the Group") announces that it has entered into non-binding heads of terms to sell its 50% interest in 1-5 Grosvenor Place SW1 to Peninsula Hotels for £132.5 million before costs. As at 31 December 2012 the Group's interest was valued at £78 million. The proposed transaction reflects a 70% premium to that valuation.

It is intended that, following the disposal of Derwent London's interest, Peninsula Hotels and Grosvenor will work together towards redevelopment of the site as an hotel and residential scheme."

[scburbs] 17/6/2013 10:28

An indication that availability of debt for residential development continues to improve.

"Pluto Finance £250m debt fund rockets to £100m first closing

...

The fund will provide developers with whole loans - which combine senior and mezzanine debt - with a loan- to-cost ratio of up to 90%.

Pluto Finance aims to provide more capital to developers than offered by traditional senior debt providers, to enable them to get new projects started.

...

The latest fund is another positive sign of the increase in debt available to property investors and developers."

Source: Property Week

[scburbs] 12/6/2013 13:15

Time for another look at potential JV partners for Wembley given the appetite for London development seems to be continuing to increase?

"LREF: Azerbaijan's £21.7bn state oil fund and the £31.4bn Canadian pension fund HOOPP are considering moves into London property development.

Speaking at the London Real Estate Forum, Azerbaijani fund chief investment officer Israfil Mammadov and HOOPP real estate vice-president Michael Catford said they were both willing to go up the risk curve."

hxxp://www.egi.co.uk/news/article.aspx?id=768211

[jaws6] 12/6/2013 07:59

yes that is true.

[quepassa] 12/6/2013 07:58

Helical bond cost 6%pa interest

BL paid 1.35 over Libor. ( around 1.5 to 2% in total )

Retail bonds are good but maybe there is some much cheaper money from the syndications market for acceptable borrowers.

QP.

[jaws6] 12/6/2013 07:52

or they can raise bond like other property co like Helical,smp.

[quepassa] 12/6/2013 07:50

When compared to the borrowing margins achieved by big-brother British Land in their recent oversubscribed £310m unsecured syndicated facility, Quintain's borrowing costs/margins look high in my opinion.

The British Land 5 year facility was launched at £200m but increased to £310m due to over-subscription. BL paid a margin of 135bp ( presumably over Libor ).

Lloyds was book-runner with banks such as JP Morgan, Bank of Tokyo, RBS, Santander, Bank of China, Scotiabank amongst others joining the facility .

Whilst British Land is clearly a superior covenant to Quintain and would command tighter margins, this BL facility is interesting and perhaps indicates that City funding for property companies is easing, margins are coming down and there is a growing appetite to lend as evidenced by the massive oversubscription from £200m to £310m.


This is BL's update giving full details:-





But good news to see that money from the City now is such that it is oversubscribing loans to top property companies.

If funding is easing and margins are coming down in the sector, this is potentially good news for Quintain who should now perhaps cast the syndications net and see what might be available to them.

ALL IMO. DYOR.

QP

[quepassa] 10/6/2013 12:43

"It's the new phenomenon of this year" says CEO Max James in insightful Bloomberg feature on London's Apartment Investing Boom.

Good to see James getting himself around the media. He's good at it and should continue to do more which will further help raise the profile of Quintain:-




ALL IMO. DYOR.

QP

[quepassa] 10/6/2013 12:38

Colourful article



QP

[jaws6] 10/6/2013 11:30

I read yesterday somewhere , out of 7000 flats sold last year 5000 gone to overseas buyers.

[scburbs] 10/6/2013 11:29

jaws6, No problem.

The FT today has a report on the wall of overseas money financing London property including more risky development work. London redevelopment is under going a massive boost from overseas money where heavily delayed projects (Battersea Power Station) are roaring into life and what would appear to be massively risky redevelopments (ABP development of the Royal Docks springs to mind) are being funded.

QED is in the right sector (London property), the right subsector (mainly residential property) and is supported by a massive supply shortage with government incentives to support demand. Still available at a c.30% discount to NAV. The unrealised NAV upside in Greenwich and Wembley is huge relative to QED's market cap. For Wembley the future gross profit potential was in the QED presentations at £418m (being future gross cashflow in excess of £286m book value of the development land).

[jaws6] 10/6/2013 10:48

scburbs
Thanks for good info.

[scburbs] 10/6/2013 10:33

Silvertown Quays redevelopment site is next to the Quintain Silvertown land.

"£1.5bn Silvertown deal confirmed
Leisure | Retail | Residential | 10-06-2013 | 09:15 | Print
Mayor of London Boris Johnson has today confirmed a £1.5bn deal for the redevelopment of the 50-acre Silvertown Quays in east London.

...

An outline planning application is now being prepared and will be submitted to Newham council in the next 12 months.

Work on the first phase of the site is expected to begin in 2014-15, with the first businesses moving in to the site in 2017."

hxxp://www.egi.co.uk/news/article.aspx?id=768074

[rochdae] 07/6/2013 16:41

Looking at that move 1997-2007, show you what this is capable of.

[jaws6] 06/6/2013 09:14

QED new high of 80.5 so chart break out ?

[scburbs] 06/6/2013 08:14

Build and they will be bribed into coming. The perfect incentive for QED to push on with Greenwich Riverside and Wembley resi. Even signs it might be good for the economy (perhaps in contrast to next years scheme for existing housing stock).

"The chancellor's Help to Buy scheme, a centrepiece of the 2013 Budget, has already beaten expectations with 4,000 new homes sold in the two months since it was introduced.

...

Stewart Baseley, executive chairman at the Home Builders Federation, said: "The equity loan scheme helps consumers overcome the deposit barrier and as a result the scheme will undoubtedly lead to an increase in house building – already we are seeing companies revise their projected build levels as a direct result of the scheme. This in turn will create jobs and deliver an economic boost.""

[rochdae] 05/6/2013 23:14

Soon over £1 I think. Ignored and undervalued and on the up. Nice combination.

[rochdae] 04/6/2013 10:47

Yes, looks like another big push coming imo.

[jaws6] 04/6/2013 09:08

scburbs
thanks for info

[scburbs] 04/6/2013 08:57

Brent Civic Centre opening next week. Another 2000 shoppers on site for LDO.

The restaurant open to the public plus the space for weddings, conferences etc will provide additional footfall to the site.

http://www.brent.gov.uk/your-council/brent-civic-centre/

[jaws6] 04/6/2013 08:40

some life today

[jaws6] 03/6/2013 12:19

Quepasa
From 73 to 78 p ?
is this right ? I was hoping for more.
http://www.dailypolitical.com/finance/stock-market/jp-morgan-cazenove-reiterates-overweight-rating-for-quintain-estates-and-development-plc-qed.htm