Sdic Power Discussion Threads

[marben100] 23/11/2010 11:56

Hmmm... a "special servicer". Does he come equipped with SAM missiles for targetting private jets? :0)

[scburbs] 17/11/2010 16:39

Internalisation of Goal finally complete. There is a worrying indication in the RNS that SDIC have carried on paying Goal as normal (i.e. including Goal's profit) for their services during the acquisition period (i.e. since announcement on 17 June). This is very worrying (but not out of line with the expectations that SDIC have created!) given they have taken 5 months to complete the acquisition of a company that has very little in it (i.e. employees and management contract)! If they were carrying on paying Goal then time should have been of the essence with a maximum 1-2 month period as Goal was very profitable. This €700,000 is only the outstanding piece so the actual payments may have been more than this.

"In addition, the Company has agreed to settle an amount of €700,000 in relation to outstanding fees payable by SDIC in relation to GOAL services provided historically.

...

As previously stated, the Internalisation is an important step towards achieving an overall funding solution with GOAL continuing to manage the Company's property portfolio but reporting directly to the board of SDIC. It is also anticipated that it will enable the Company to realise cost savings."

[scburbs] 17/11/2010 16:33

Finally some info (from SYG) on the properties transferred. As expected the properties transferred to SYG were much lower geared than the average. With €8.991m of "equity" and €25m of gross assets this implies an LTV of 64%.

"The consideration to be paid, in lieu of notice, for the termination of the IMA is €7.851 million which is to be settled by the transfer to SPG of property assets owned by the Company, at the latest DTZ valuation. To cover the handover of services over the intervening period, the Company had agreed to pay SPG the fees due under the IMA for a period of six weeks from 1 June 2010, expected to be about €1.14 million, and such fees to be settled also by transfer to SPG of property assets."



"In addition, the Company [SYG] now owns a portfolio of German residential properties with a gross asset value in excess of €25m, acquired pursuant to the termination of the SDIC IMA, and the Board will consider its options in relation to these properties going forward."

[horndean eagle] 16/11/2010 10:42

Picked up some yesterday at 6.1c. Hoping that another well run operation will put SDIC out of its misery. Happy enough if they offered 10c.

[scburbs] 16/11/2010 10:31

Lagosboy, Yes very well thanks, hope you are too. It does look like poor mangement has been the death of this one. Combine that with high gearing and the result is the mess that has been SDIC.

TAG Immobilien (I am not currently a holder) on the other hand which was in bad shape prior to a change of management continues to go from strength to strength. It is now making a bid for Colonia.

"The Management Board of TAG Immobilien AG, Hamburg ('TAG' in the following) today resolved, with the approval of the supervisory board, to extend a voluntary public takeover offer to the shareholders of Colonia Real Estate AG, Cologne, as defined in § 10 Abs. 1 i. V. m. §§ 29, 34 WpÜG. The object of the offer are the bearer shares in Colonia Real Estate AG ('CRE' in the following), which are traded as ISIN: DE0006338007 on the Regulated Markets of the Frankfurt Stock Exchange (Prime Standard). In return for a share transfer, TAG is offering CRE shareholders a purchase price of EUR 5.55 per share. This offer represents a premium of 30 percent per CRE share, calculated based on the average weighted market price of the share over three months (XETRA closing price) in XETRA trading on the Frankfurt Stock Exchange, according to Bloomberg and before the takeover intention was made public. TAG Immobilien AG today published its decision to tender a voluntary takeover bid in a separate announcement in accordance with WpÜG, in parallel to this announcement."

[lagosboy] 11/11/2010 21:26

Hi Schrubs...hope you are well....unfortunateley looks like I was correct on this one.

Over leverage, inability to securitise the debt has done for SDIC.

[bisiboy] 10/11/2010 14:34

scburbs hope you are wrong but suspect you are right

[scburbs] 10/11/2010 10:37

TAG Immobilien continue to show what a good management team can do in the German residential market even with properties with high vacancy.

Residential vacancy down from 10% at the end of 2009 to 6% currently. A new portfolio they acquired with a lot of vacancy is down from 15% to 9.6% since the beginning of the year. TAG must have been holding some poor quality properties (given the previous very high vacancy levels they had) and the huge improvements have occured since the management change.

These improvements have made a massive difference to their profitability and cashflow. There is no reason to expect SDIC to perform similarly as it looks like TAG has a strong management team driving outperformance and SDIC does not.

[bisiboy] 04/11/2010 18:13

it is evident that the original investmetns were poorly selected and that
we appear to have overpaid for what we bought.
still there does seam to be hope at least the market is going in the right dirction for us.

[gary1966] 01/11/2010 20:13

Was I imagining it or was there an approach some time ago that may lead to an offer for the company. Do we assume that they have gone away now?

[davidosh] 20/10/2010 16:56

scburbs....Absolutely incredible and what happened to the results that are due this month ?

[scburbs] 20/10/2010 16:54

Comedians who appear to believe the shareholders are goldfish! Commence a planned capital expenditure programme!! Who was it that they got to manage the last refurbishment programme? This was a programme that was then massively extended. What happened to the value from this programme?

"Speymill Deutsche Immobilien Company plc (AIM: SDIC), the pan-German residential property investment company listed on AIM, announces that, in relation to the most recent debt payment obligations, the Company continues to defer the amortisation payments on all of its debt packages. On three of the packages, the Company has paid over half the interest due and intends to pay the balance of the interest over the following quarter. The interest on the remaining loan package (which is securitised) has been paid in full.

The Company and its lenders believe that it is important to improve and/or maintain the overall quality of the property portfolios. Therefore, a portion of the Company's funds is being used to commence a planned capital expenditure programme to ensure that improvements in the Company's property portfolios are achieved in the medium term.

The underlying trading performance of the Company's property portfolios, however, continues to improve steadily with vacancy levels reducing overall and the recovery of rental income and service charges increasing."

[bisiboy] 15/10/2010 20:28

lagosboy- i hope you are wrong i am sitting on a nasty loss here. prices in germany are strong at present and transactions are increasing there is hope i think

[lagosboy] 24/9/2010 08:40

Jim Mellon will not be buying Speymill....the announcements are pretty clear on that. It has been run into the ground. I expect it to absorbed into one of the larger German Real Estate companies with lower leverarage so the banks will be happy and the major shareholders may take stock in that company so will have a chance to recover some money although that will take years.

One has to accept that due to a number of factors, not least that it was run by a clueless management team that SDIC has failed.

[sleepy] 17/9/2010 07:29

pgreen - it certainly once was based on 12 months but is it a shorter period now? Their may also be a provision whereby the Takeover Panel can consent to a lower price in certain circumstances?

[pgreenman] 16/9/2010 22:02

I am no expert on the takeover code but if I remember correctly if someone launches a takeover the price offered must be at least equal to the highest price they have purchased shares at in the last 12 months.

JM bought shares at 3o cents in Jan, that would be nice but I canot see it.

[lagosboy] 13/9/2010 13:06

kibes

The banks and not the Board will be directing traffic now.


The refinancing will go through and the large shareholders will seek the best price they can get.

The company has failed as an equity investment.

[kibes] 11/9/2010 11:44

I would be concerned about the board accepting a very low offer and then telling shareholders that they have to accept it or otherwise they will call in administrators. The debt refinancing appears to be going nowhere and covenants are breached. How can it be described as a 'going concern'? JM may be willing to bail it out but at what price?

[lagosboy] 08/9/2010 12:47

It dose say from third parties, good luck to all those that still hold.

[jeffian] 07/9/2010 09:30

Would anyone be very surprised if the approach was from Mr. Mellon and/or his associates?

[gary1966] 07/9/2010 07:30

Possible approach - is this the final shafting of all us PI's?

[jeffian] 25/8/2010 15:55

Remember this one?

"jeffian - 18 Feb'10 - 18:54 - 516 of 1373 edit
Watch out. This is a rich man's playground. A not-uncommon stunt in these circumstances (cf. Reuben Bros / PBR) is to 'rescue' the Balance Sheet via a Placing resulting in a major shareholder becoming and even more major, or even controlling, shareholder."

Well, it's happening over at SYG (this from their AGM statement today:-

"...in conjunction with the conversion of all or part of the current loan outstanding by Mr Mellon, together with Burnbrae Limited, and/or Mr MacDonald."

Is this the future for SDIC too?

[lagosboy] 17/8/2010 18:18

kibes

Only thing I would question is the duration of the Interest Rate Swaps, otherwise quite possible.

Either way, we are betting on the a decline in the real value of the debt due to a Euro collapse. Your theory is better in some ways (subject to my concern above) as it does not involve Germay exiting the Euro.

[kibes] 17/8/2010 13:03

lagosboy - perhaps another possibility is:

1. Euro collapses on world markets
2. Screaming inflation everywhere in the eurozone as a result
3. Rents in Germany go rushing up along with everything else
4. SDIC's income goes through the roof (but only in devalued euros mind you)
5. SDIC's loans all hedged at around 5% so no increase in interest payments
6. SDIC pays off loans using devalued euros and is left sitting on the hard property assets free of debt!

[lagosboy] 14/8/2010 15:49

Have to agree with Jeffian.....the German Economy is almost a complete irrelevacy to SDIC.

It only becomes an issue if Germany becomes tired of supporting the Eurzone and exits causing a Euro collapse and leaving SDIC with cheap debt serviced with Marks.

If you believe the German Economy is a material factor, I would be concerned because SDIC seems inversely correlated on current performance!