Real Estate Investors Share Discussion Threads

[chucko1] 06/7/2022 12:32

HP - your point?

If you want a history lesson on, for example, the enticing yields of Iceland Banks, or German Tier II bank debt with very attractive yields, it will be a long post! Most would be focused on the disasters that followed the purchase.

[hugepants] 06/7/2022 11:38

RLE's 9.2% yield versus BREI's 4.8%

Risk/reward indeed.

[peter27] 06/7/2022 10:53

The comment on consolidation could be read that they are open to offers.

[chucko1] 06/7/2022 10:36

My point is simpler - I am not as negative on RLE as others (it is hardly expensive). But with SREI, BREI et al. trading where they are, the risk reward on RLE is pathetic by comparison. Why bother? Because of the Games??

Corporate governance matters - and this is a reason to add significant concern when weighing the risk.

[2wild] 06/7/2022 09:38

Manipulation to 45p giving 25% discount to my estimated 60p June NAV would be nice.

[spectoacc] 06/7/2022 09:32

I'm with @nickrl & @hillofwad, tho I accept everything has its price - good luck @2wild.

Amazed at how little research most shareholders do, tho true of most co's I guess. Doesn't take more than 5 minutes to look up the web of ownership of BW entities on Co House, nor to look beyond what they want you to read on the RNS's. Today's a classic example.

[ravpabari] 06/7/2022 09:13

Hillofwad with his usual ramblings- this time at 5.56am! Your Bassi/Bond Wolfe obsession never fails to amaze and amuse me. First thing you do when you get up in the morning is think about Bassi!

[nickrl] 06/7/2022 09:03

Bassi got all the credentials to join the cabinet.

This is market manipulation to prop up the share price

[2wild] 06/7/2022 09:02

Brought this morning at 34.98p on 40% discount to nav, 9.3% covered dividend yield and the prospect of capital returns. Every dog has its day. At these levels the risk reward ratio Luke compelling even though the macroeconomic backdrop is awful.

[hillofwad] 06/7/2022 08:47

Huge

There was nothing in today's news that has not already been said Maj ofsales moniesform teh Burger king sale It looks like some of the sales proceeding aren't completing until H2 which which includes the Mcdoanlds in Leamington is fine

Basically anything which can make a book profit is up for sale . Not a strategy I would adopt but its all about appearances with RLE

No real asset management improving the portfolio quality just damage limitation

Letting or sale in progress on the smaller of the Oldbury office building is good news just repalcing the lost income from Npower on the larger of the 2 likely to prove more troublesome

Possibility of another floor going at Titan House but its not
very exciting
No transaprency about actual rental income being received ,unallocated servcie charges
What has surprised you?

[hugepants] 06/7/2022 08:27

The sound of Wad gnashing his teeth when reading todays news was clearly audible!

[hillofwad] 06/7/2022 07:38

Sounds pretty impressive 27% on Dec21 valuations .

Most of that of course will be attributed to the Burger King sale Difficult to say what adverse effect the sale has had on the remainder of the Market Centre with the loss of income from the car parking

This is another classic Bassi £14m "contracted" income not actual! Hidden in there is some hefty ent free periods or concessions

I wonder if Vine Hotels are paying any rental yet for West Plaza ?

[spectoacc] 06/7/2022 07:30

"If the significant share price discount to NTA persists, we will consider a special dividend, share buyback or other form of capital return to shareholders, the structure and timing of which is yet to be decided. The quantum of any return of capital will be set to ensure that we maintain a prudent loan-to-value ratio, whilst also being mindful of the overall liquidity in the Company's shares. The Board recognises the need for market consolidation within the real estate and REIT market and remain alert to options that align with the interests of our shareholders.."


Great, but - doesn't actually promise a thing. Not a special divi, not more token buybacks, not some "..Other form of capital return..", whatever that may be.

And doing a PCTN with "...The need for market consolidation..". What, paid for with hugely discounted RLE shares?

All reads v well, until you actually analyse it.

[hillofwad] 04/7/2022 18:51

Everything is up for grabs They bought this a few years
Only chance of a profit is if they have written the book value down they paid £1.3m +acq cost say £1.36m in 2016

ORIGINAL SALES PARTICULARS
hxxps://www.rrg.co.uk/wp-content/uploads/2016/10/BROMSGROVE-62-68-High-Street.-Final.pdf
hxxps://www.bondwolfe.com/agency/properties/62-68-high-street-bromsgrove-b61-8ex/


They would have trousered a decent profit on this but it was the crown jewel with the length of the lease

hxxps://www.bondwolfe.com/agency/properties/34-the-parade-leamington-spa-warwickshire-cv32-4dn/

[hillofwad] 30/6/2022 04:26

Birch and Birchfield House Oldbury

Anatomy of a deal.The strangest of all their purchases and no excuses for the unmitigated disaster being within spitting distance of Bond Wolfes offices in West Brom ,a market they know like the back of their hand.

2 decent office buildings developed by Stoford abutting J2 of the M5

Birch House(16.540 sq,ft) the smaller of the 2 was originally occupied by Npower on a lease expiring in Dec 2017 paying a rental of £239,685pa .They vacated that and took on the larger Birch House(35,749 sq.ft) at a rental of £517,650pa on a lease expiring in March 2021

hxxps://www.business-live.co.uk/commercial-property/real-estate-investors-makes-22m-10369419

Investment bought in Nov 2015 and announced the purchase of Tunstall at the same time in a £22m swoop. It looks as if they probably paid about £8.1 m/£8.3m for Oldbury reflecting a yield overall of 8.5-8.8% net

Ramsdens had been marketing Birchfield House on behalf of Stoford previously seeking 8.1% in 2011 without success when still some length in the lease


One can ony assume that Bond Wolfe had a tenant in mind for the empty Birchfield House or confident that they would find one before the original lease expired in Dec 2017

It beggars belief that it has now been standing empty for 7 years!! Although acc to the letting agents its now under offer! Now joined by Birch House empty for 12 months and a colossal loss of rent £517,650 pa

Knight Frank unsuccesfully had been trying to flog Birch House as an investment before Npower moved out in 2021 out]

[nickrl] 29/6/2022 18:51

So i thought i'd look through the annual report today but still not on the website (unless im going mad) despite RNS says it was placed there on 26/4/22. It maybe just a glossy version of the final results but generally they contain more back up info although knowing this lot all i will get is a picture of Bassi.

[hillofwad] 29/6/2022 13:18

Specto agreed .The purchase of West Plaza should never have happened for governance reasons

Ian Stringer a decent sort ex Grimleys man and boy. Knows the W Mids office market especially around Colmore Row

Yet probably like the previous Ex Wragge Crabtree just token counterbalances to the Bassi family

[spectoacc] 29/6/2022 12:44

Agree everything has a price. But I think mine would be the FD & Bassi going, because I frankly don't trust the massive web of companies, the very cosy deal with (& their ownership of) BW, and the amount those they're brazenly paid from the co.

I'd worry about any value that does accrue actually accruing to shareholders.

All IMO.

Bond Wolfe Auctions' directors (only one of the many co's):

[hillofwad] 29/6/2022 12:34

Yes certainly there is a price where it becomes a buy

They have experienced the big hits with the loss of Npower,HP and Premier Inn (partly mitigated by the letting to Best Western.terms not revealed)

The problem I have is that you never ever get the full story to be able to value the individual buildings correctly

Any bad news is well buried

For exaample the letting to Best Western at West Plaza What investors actually want to know is how much the rent was .How that compared to the rental Premier Inn and what were the capital fit out incentives and/or rent free incentives offered

All we got was it exceeded the valuers exspectations which might have been pretty low due to the pandemic! Bearing in mind this was the white elephant Bassi stuffed in maybe not surprising that he kept quiet

Likewise with lease renewals and voids on the Market Centre Crewe what is the current net income and how much services charges are curently non recoverable investors havent got aclue what that is.Theonly news we get will be the good the sale of The Burger King investment

[cwa1] 29/6/2022 11:36

Just as a matter of interest, how, is there ANY price level you WOULD buy this at, or is it bargepole regardless?

I was a holder many, many aeons ago but haven't looked at it for a very long time, so have no axe to grind either way, just interested in what you would consider an interesting share price given how negative you are on the company and its assets?

Thanks for any thoughts

[trcml] 29/6/2022 11:05

Snag (from a shareholding perspective) with this company, as with others into buying secondary quasi-prime commercial property in the provinces, is thinking high yield is a bargain. In fact, high yield is symptomatic of high risk, problematic and little/no growth.

[hillofwad] 29/6/2022 06:47

At the same time they purchased Commodore Court they coupled it up with the purchase of the "LANDMARK BUILDING Titan House Telford which on the face of it at a purchase price believed to be just over £2.8m off a rent rollof £388,000pa a very attractive yield

hxxp://cushwakesales.com/Data/CWI170/Documents/Telford%20Titan%20House.pdf

A double canine whammy



However this was only likely to run to Oct 2020 when the lease expired as the tenant HP was moving out
A Mississipi riverboat gamble of the highest proportions

HP as expected failed to renew the lease in OCT 2020 with the loss of £388,000pa rent Now having to throw money at the building on upgrading the building. Failed to land a single tenant so a year later has let the prime ground floor at circa £100kpa with unrecoverable service charge for the empty floors

Just the 25k to go which is going to be a long haul.floor by floor The running yield not looking so attractive now!