Sigma Capital Share Discussion Threads

[busterdog2] 13/5/2017 19:50

A bit more info on IHR.......

The company is targeting the payment of dividends for the first 12 months from admission which equate to a yield of 6 per cent per annum on the issue price, on an ungeared basis and payable in quarterly instalments. The company is also seeking to grow the dividend over time.

[riddlerone] 13/5/2017 18:05

Here is an example from the specialist fund segment list kindly provided by jonwig
IHR

Impact Healthcare REIT raises £160m
By Paul Norman - Thursday, March 02, 2017 11:37
Print
Impact Healthcare REIT has raised its target gross proceeds of £160m from its proposed share placing.

Understand your viewpoint jonwig but being very selfish all i am really interested in is getting the REIT away and de-risking my SGM shareholding

[jonwig] 13/5/2017 15:03

Hi, Asagai.
Specialist Fund Market:



If you want to apply, you'll find a lot of brokers won't touch it. I can trade in the SFM only because I've done a form with my broker to say I'm a 'sophisticated investor'. My exposure here is in reinsurance and CAT funds, which I'm quite happy with. I'm surprised the PRS sector is deemed to be so complex, quite frankly!

One broker I use (advisory) will let me apply, and I e-mailed them this week with my reasons for deciding to decline (basically my post #135). When I get a reply, I'll post it here.

I'd be interested to hear from the poster who thought my post #135 was worth voting down. All of my four bullet points were questions. Perhaps he can answer them?
And, finally, if "Sigma needs PRS REIT IPO to be a success" that sounds like a good reason not to subscribe!

[asagi] 13/5/2017 13:02

As such, the participants are under notice that they are not FCA-regulated, although application has been made for this.

sorry if I am being fick jonwig, but what do you mean by this? Or, perhaps more accurately, I don't know what this means, can you spell it out another way?

I have no concerns about investing in a company that is not FCA regulated. We do it all the time. There will also be a significant saving in not being registered.

Sigma needs PRS REIT IPO to be a success.

Asagi (long SGM)

[busterdog2] 12/5/2017 18:29

Yeah, and they've got an office in Scotland, so it's bound to be a bit fishy.

[jonwig] 12/5/2017 16:24

The PRS REIT is to trade on the Specialist Fund Market, not the Main Market. As such, the participants are under notice that they are not FCA-regulated, although application has been made for this.

• Why did they (SGM) not sort this in advance?
• Is development risk loaded onto PRSR to the advantage of SGM?
• Are their lead builders all that sound? (Countryside, Keepmoat - high on complaints lists.)
• Are SGM and its associates reaping too large a reward?

Of course, holders of SGM will be highly delighted if the float gets away fully-subscribed (and there's a further placing programme), but my feeling is that PRSR will carry the can!
Won't be applying.

[busterdog2] 12/5/2017 16:16

Maybe? To be honest I don't know if they'd announce it before the 25th anyway.
Just a bit of wishful thinking on my part.

[riddlerone] 12/5/2017 15:48

Agreed Busterdog,I wonder if they were oversubscribed would they increase the offering?

[busterdog2] 12/5/2017 15:25

At the latest. They could get the full amount before then.

[riddlerone] 12/5/2017 08:13

So 9 more trading days including today until we get the result of the PRS REIT IPO.

[kooba] 10/5/2017 13:54

On a technical front ....company been in downtrend for over 12 months...looks like we have broken out of that trend line?

[kooba] 10/5/2017 13:50

The reit is being toured the houses this week and suppose the model is gaining favour.Only feedback I get is confidence at demand for REIT...and that Sigma will have £70m of new build to put in...now I thought they had a £60m gross development cost self financed portfolio ....can we read through the margin??

[fidra] 10/5/2017 12:34

Very quiet here considering we have moved 20% in a week.Any one applying for the REIT ?

[jonwig] 10/5/2017 09:07

Thread for the REIT, PRSR:



Dealings start 31 may.

[harry vederci] 08/5/2017 11:52

just bumped up again on my buy

[kooba] 08/5/2017 11:22

Think there had been seller overhanging for a while hoping invesco cleared that the other day so looks like a struggle to buy any stock at moment...hoping for rerate when model is fully visible.If we have some earnings certainty of growing double digit eps for next few years going out would expect a decent rerate.

[hastings] 08/5/2017 10:03

Some sound comments here.Nice to see it nudging up on seemingly small volume.Could prove very cheap at these levels given the prospects for the coming years if all comes together as envisaged.

[riddlerone] 08/5/2017 09:27

"In addition, pursuant to the Prospectus, a placing programe will allow the Company to issue up to 250 million further Ordinary Shares in the 12 months from the date of publication of the Prospectus"
So they are probably looking for some uplift in the REIT shareprice before increasing the offering.
I tend to disagree with your views on slippage for the current year.If this all goes ahead they will forward sell the Seed portfolio into the REIT.We know that it will have cost them £60m and they intend to forward sell for £72m.
"Pipeline of approximately 2,535 new homes with a Total Cost of c.£375 million is already identified and contracted, including a seed portfolio of c.£72 million of assets either completed or under construction"
This will surely be in addition to the UKPRS completions fee and the half a percent fee for the completed Gatehouse Phase.Add in the regeneration fees and you have a very different year to previous forecast.All my opinions and views no advice intended

[kooba] 08/5/2017 08:42

They will obviously had initial meetings with key institutions to gauge appetite so I think they will be confident.equally the talks with HCA to cornerstone the fundraise would have gone into prospective demand in some detail.Maybe it's limited at £250m as on a foreseeable timetable that is all that can be practically built /sourced?? Then we have round two or new reit as model grows and delivery expands.Interesting times and will be very interesting to see analyst forecast for next few years once this is in place.Strikes me on delays there will be some slippage on current year forecasts but a more visible growth curve further out which should be greeted with decent rerating imho.

[riddlerone] 08/5/2017 07:14

Take a look at CSH.Similar in that its a REIT that had an IPO in November raising £350m.Not a patch on the yield proposed or quality of assets.Think Busterdog is right, they must think there is a good chance of this being fully subscribed

[asagi] 07/5/2017 13:01

Dear busterdog2 - agreed on all points.

Asagi (long SGM)

[busterdog2] 07/5/2017 12:35

I don't think they would have simply pulled a figure of £250 million out of thin air. They must think they have a fair chance of achieving it or why bother. Why set themselves up for a fall? It wouldn't make sense.

[asagi] 06/5/2017 21:46

Not all down to Singers! STIFEL have good rep with institutions and there are specialist intermediary advisors on board too.

Agree kooba. Sorry if it seems like I am arguing the point but N+1 Singer is first name on that list. More accurately, companies don't do any work, people do.

James Maxwell, Michael Taylor, Liz Yong, James Hopton

time to prove your mettle. Let's see what you are up to.

N+1 Singer homepage says:
"SINCE JANUARY 2013
WE HAVE HELPED 75 COMPANIES RAISE £1,810,300,597"

that's an average of £24m per company. PRS REIT is asking for almost ten times the amount that N+1 Singer has (on average) raised for companies.

Looking at history, it seems that James Maxwell has led a team that raised substantial amounts for Ground Rents Income Fund (GRIO). That's very encouraging as this is a similar initiative. PRS REIT will have the £250m number in mind following soundings from other investors. With luck, it will have an institutional investor or two on board as well like Gatehouse etc.

Asagi (long SGM)

[kooba] 06/5/2017 18:09

Not all down to Singers! STIFEL have good rep with institutions and there are specialist intermediary advisors on board too.Expect decent press as it's an innovative income product .Should go well.Be interesting to see the analysts numbers if they get this in place. N+1 Singer James Maxwell Tel: +44 (0)20 Michael Taylor 7496 3000 Liz Yong James Hopton Stifel Tel: +44 (0)20 7710 7600 Mark Young Neil Winward Tunga Chigovanyika Solid Solutions Associates Limited Tel: +44 (0)20 (Intermediaries Offer Adviser) 7549 1613 Nigel Morris KTZ Communications Tel: +44 (0)20 3178 6378 Katie Tzouliadis Emma Pearson G10 Capital Limited (AIFM) Tel: +44 (0)20 3696 1302 Gerhard Grueter

[asagi] 06/5/2017 13:54

Big test for N+1 Singer's capability as broker. Will they get the full £250m planned? If not, no ifs or buts, they have failed.

Similarly PR KTZ Communications. How much media will they garner, such that the intermediary offer (Selftrade etc.) comprises a meaningful contribution? First test comes tomorrow in the Sundays.

Asagi (long SGM)