Real Estate Opportunities Share Discussion Threads

[chesty1] 15/11/2010 22:15

Well end of another blue day....

Nice tick up into close & ready for an attack through 5p with ease tomorrow.

Be lucky to all & bring on the action

[badtime] 15/11/2010 22:11

O ..i was a tad down but just read through todays posts...what a..comedy show..especially that comment by joe ..''nobody is ramping it'' classic! some peeps must work for walt disney

Tilts what made u buy the culs?...btr bet thn ords ..hoping for something on the bak of the ords?

PS...4P wow ..well within spread to say the least

[lbo] 15/11/2010 22:05

Anyone know how the £722m REO defict has been suddenly wiped out by the Battersea planning change approval? Do some really now think the value of the Battersea site has now gone from circa £380m to over £1bn on the back of a change to the planning that was already subtantially approved back when REO bought the site in 2006?





REO has aggregate obligations of just over £370m of its Convertible Unsecured Loan Notes (CULs), its Zero Dividend Preference shares (ZDPs) and the 6.324% Series A and B unsecured loan notes. "The liability at 28 February 2010 in respect of the CULs and the ZDPs is £101 and £122 million respectively. In the case of the CULs, interest is paid every six months in the amount of £3.8 million and the next interest payment is due in August 2010", the accounts state.

[gucci101] 15/11/2010 21:35

Unfortunately the CULS and ZDP's rank ahead of the ORDS. Likely to be diluted to oblivion by the higher ranking equity I'm afraid.

[lbo] 15/11/2010 21:29

Just like Russian Roulette. But sadly that game of chance ends in someone losing their brains too! Next some will have us believe they are experts at coin tossing!

[joe_public] 15/11/2010 16:28

unfortunately the stock market these days is more about timeing
and luck!

[lbo] 15/11/2010 16:15

I suspect I know a bit more about REO then some! DYOR

[asmodeus] 15/11/2010 15:53

Skyship Re Your:

SKYSHIP - 14 Nov'10 - 15:18 - 559 of 621
Asmo - do beat the others to the exit door tomorrow...

I waited for just enough rise to get my (overpriced) stake back, and sold it "closing". Some of the warnings on here have frozen my feet! However - as it happens, I still have a holding in my ISA, held since 1996, so you can imagine the loss!

[joe_public] 15/11/2010 15:42

Comedy - I think he genuinely does not want anyone to get carried away as he can see this all ending in tears
and he is probably right - but first imvho there is money to be made

he has done a good job of warning everyone - but we all make our own decisions

[tiltonboy] 15/11/2010 15:38

joe,

Nobody is ramping it!!!

What do you call some of the price targets bandied around on here?

Another fantastic conspiracy theory..."must have an agenda"...lol...

[comedy] 15/11/2010 15:30

obvious joe he has a short open...bee posting non stop in a stock he doesnt hold? come rain come shine..so obvious he agenda...ther were days when i would nip on and he had posted???lol keep it up seems like the funds are getting their shares...end of week 10p?:)

[joe_public] 15/11/2010 15:22

LBO what is your problem?

You have made your point very clear
no-one is ramping this
please allow investors to make their own mind up

[kfard123] 15/11/2010 14:46

PLEEEEEEEEEEEEEEEEEEEEEEASE.

[lbo] 15/11/2010 14:42

To take the project any further, however, will take a lot more money - money that REO simply does not have and which, thanks to an already stretched balance sheet, it cannot borrow.

While Nama and other lenders have already agreed to roll up interest on the existing Battersea borrowings, the hefty project finance necessary to redevelop the site will need to be sourced by the new equity investor, assuming one can be found.

The arrival of a new investor is almost certain to diminish, and perhaps even wipe out, any upside REO might have hoped for from Battersea in the future.

REO played up the level of enthusiasm shown towards the project during a current roadshow aimed at potential investors, but its ability to seal a deal with a partner will be dependent on presenting an acceptable investment case.

Satisfying an investor enough to extract a cash commitment may come at a very high price to REO, which in any event will be second in the queue behind its lenders when, or if, any proceeds are being distributed down the line.

Battersea aside, however, the rump business that remains in REO's portfolio offered little consolation to shareholders, as the company warned that its business plan for the next 12 months was contingent on a series of favourable bounces.

These include Nama accepting REO's business plan and agreeing not only to renew existing facilities and continue to roll up interest, but also to provide additional working capital.

The company also needs other lenders to facilitate its many requests and planning authorities in Britain to ease the passage of planning permission for the Battersea project.

Even if Battersea works out, however, REO has warned that it will continue to suffer from a significant surplus of liabilities over assets and that it will continue to rely on benign treatment at the hands of Nama and its banks.

It is hardly the place that any shareholder - or lender - would want to be.

[lbo] 15/11/2010 14:37

The balance of £150 million is being satisfied by the issue by REO of loan notes to Oriental. In the event of REO issuing new shares for cash or assets, Oriental will have the right to exchange its loan notes for REO ordinary shares, at the issue price, subject to certain conditions and limitations, in particular Oriental's holding not exceeding 10 per cent. of the issued ordinary share capital in REO. In addition Oriental will be entitled to redeem its loan notes on a pro rata basis if part of the Site is sold. While its loan notes are outstanding, Oriental will retain a second charge over the Site.

[kfard123] 15/11/2010 14:24

-ive,-ive and even more -ive.
Why?
Lets be +ive for few days.
then sell and let them go bust!

[lbo] 15/11/2010 14:14

I wonder what Mr Hwang thinks when REOs last stated NAV was a negative 178.2p per share while today its shares are trading at 4p! How long will he wait for his £150m if NAMA gets paid?

[comedy] 15/11/2010 13:58

well seems like 5p hit already today...tomorrow 6p?:)

[kfard123] 15/11/2010 13:37

Much better position today than last week.
Should have bought more last week.

[tiltonboy] 15/11/2010 12:21

Just picked up a few CULS at 4p.

[lbo] 15/11/2010 12:16

LOL

And where is this £5.5bn going to come from? And what will it be secured against? Maybe the site will make a profit in years to come but it won't be owned by REO if it ever does get that far. REO is still insolvent now and NAMA wants its debts paid ASAP and who is going to lend another £5.5bn to a highly indebted and insolvent company? Not NAMA! NAMA is under the same financial pressure as Ireland who can barely borrow at 8% plus. If anything NAMAs debts are part of Irelands problems. The Battersea site thanks to the planning will be sold or reveresed into a another company very soon IMHO and all the possible buyers/investors know its a forced sale so will be putting very low valuations on it as its coming from a distressed seller and is still a very high cost and risk developmenmt. Now maybe the Newco is worth investing in but not REO as all facts still leave REO insolvent! DYOR

[tiltonboy] 15/11/2010 12:16

Badhshah,

The difficulty is that it is highly unlikely that REO will get the opportunity to enjoy the fruits of any developments. Key to all of this is how quickly NAMA want their money back.

As a previous link has shown NAMA are not averse to just closing a business down, to get it's money back!!!

[badhshah] 15/11/2010 12:06

LBO, they have just got the plan passed to spend £5.5b over the next 14 years. The first phase will complete during 2016. Now don't tell me that property prices will be much lower at that time then today, specially in LONDON.

Now if the company is to spend 5.5 billion pound and again don't tell me when the whole project will have completed by 2024/26 then the over all value of properties will not have doubled to 11 billion pound minimum.

And what about the other assets in Dublin, the capital city of republic of Ireland. You are suggesting that the property prices which are doomed at the moment will never recover and Iraland as a country will go bankrupt forever.
Yes, they are in trouble and they are comming out of truoble right now. Recovery is on its way. If it didn't come this year, it will come next year. That's how free economies work. We have seen the worse and we are going to see prosperity very soon.

[lbo] 15/11/2010 12:06

"They all need to sustain belief that Battersea with planning permission will be worth more than the Groups debt, which is a tall order"