Rdi Reit P.l.c Share Discussion Threads

[grollfam] 12/8/2012 12:10

Redefine Properties International Limited ("RI Ltd")

RI Ltd is a variable rate property loan stock company listed on the JSE.

RI Ltd's sole asset is a shareholding in Redefine International P.L.C. ("Redefine International"). Each linked unit in RI Ltd effectively equates to one share in Redefine International.

RI Ltd provides South African residents and institutions a South African Rand-based opportunity to invest in an international portfolio of properties. South African participants own an investment in good quality offshore properties at an attractive yield and a growing income stream with the added benefit that investing offshore may provide an effective Rand currency hedge.

[esteenfeldt] 09/8/2012 13:35

Jonwig post 8

The name is actually Danish although I lived in SA for many years. I have an interest in all the related companies, namely the UK listed RDI, as well as the SA listed RIN and RDF.

RIN currently seems to offer extraordinary value at a forward yield of some 16.5%, based on the current price and the most recently declared dividends being maintained. I agree with you that the current weakness in the price seems to imply that market participants believe that dividends will not be maintained. There has also been a big question mark hanging over the company about their legacy debt issues, although these now seem to be brought under control bit by bit.

For your information, the route from RDI to the SA listed Redefine Properties Limited, RDF,is that, RDF has a majority shareholding in the SA listed holding company Redefine Properties International Limited RIN, whose only asset is a 74%ish interest in the LSE listed Redefine International Plc, RDI. Therefore,whatever happens to RDI will impact directly on the SA listed RDF. It is therefore my belief that RDF will do whatever it takes to straighten out RDI's finances. The influence of Marc Wainer on RIN's Board should, in my view, not be underestimated. I consequently rate RDI as a buy. But, as always, DYOR.

[jonwig] 09/8/2012 10:32

Thanks esteenfeldt (SA name, maybe?) - my research hasn't got that far!

I see they've ratified the next quarter dividend, but there must be fears about future payments being maintained.*

*EDIT: I see they are committed to paying out the whole of their available income.

[jonwig] 09/8/2012 08:35

I think the fundraising is the key here.
MCap is £157m and they want (need) to raise £100m.
Placings and Open Offers tend to be around the share price at the time.
Redefine Properties International Limited holds 69% and would, pro rata take up £69m leaving £31m, or a 1-for-5 open offer.

Incidentally, I wouldn't (post #4) call it a micro-cap, and there are ten directors, which is a bit rich!

[parsons] 09/8/2012 07:54

I bought some a few days ago.They seem to have good quality properties and longer term finance.The property in Harrow is very interesting.Residential property in this part of the world is strong, I know this site.As soon as the fundraising is out of the way the shares should reflect their true value.

[grollfam] 08/8/2012 16:57

Its a neglected micro cap overgeared property stock, but the price is now reflecting real value...Seems some distressed sellers & disinterested institutions are selling it down ahead of a credit crunch to repay a mountain of debt...but this seems to under control after the last 2 announcements & the trading statement in July...........

[jonwig] 08/8/2012 16:22

Hi, grollfam - so is the share price being held back by the pricing of the open offer? I think that will come next month.

By the way, I'm a bit surprised nobody on ADVFN has seen this as a possible play - no threads opened till now!

[grollfam] 08/8/2012 14:47

Should not go bust.....100 million coming in October which will reduce gearing to around 60%....All loans non- recourse to RDI

[jonwig] 08/8/2012 09:30

This property company is in the midst of a debt restructuring and a fundraising is imminent - hence the weak share price.

The stock will boom or bust, and I haven't decided which I think more likely.
No hurry, anyway, as the fundraising (placing and open offer?) will not be announced soon.

[jonwig] 08/8/2012 09:27

Corporate Overview Diagram:



Significant Shareholdings;

Redefine Properties International Ltd ... 415,507,157 ... 71.71%

(Total 566.7m shares, 15/08/12)