Summit Properties Share Discussion Threads

[alpacaz] 09/12/2021 11:11

Liberum told me they hoped to trade by close Friday.
I wouldn't normally consider selling at a deep discount but I got no traction from the NED's and have no feel for any possible relisting. Asset Match is irrelevant going forward so decided to offer my entire holding up. Moving on...

[deltabase] 09/12/2021 00:10

Contacted Liberum today, bookbuilding underway for another clean-out trade at €1.45 gross. Telephone Liberum dealers to participate. However, nothing firm as yet, no indication on timelines.

[bowerdean] 08/12/2021 10:47

I understand that Liberum are paying/are contemplating paying Euro 1.45 less commission per share. This is the same price as they paid when they were last in the market in around March 2020, assuming it’s the same buyer. I do not know how long this offer remains open for but have asked my broker to contact Liberum to offer my shares to them.
Although Euro 1.45 is way below asset value,it is way above what the shares have traded at via Asset Match recently. If successful I will write a memo to myself to think very carefully before again investing in a majority controlled company.

[alpacaz] 08/12/2021 10:00

I am a holder and was approached by Liberum (they knew I held stock from when it was AIM listed)

[davebowler] 07/12/2021 17:00

Yes, thanks for that. I'll contact Liberum.

[mark20690] 07/12/2021 16:53

thank you alpacaz. Could you let us know where this information is from, and are there more details?

[alpacaz] 07/12/2021 13:14

The Company have indicated they may buy in stock through Liberum. If you have a broker, get them to speak to Liberum.

[davebowler] 09/11/2021 13:51

......Research by Liberum

[davebowler] 09/11/2021 13:50

Such a contrast to Summit. Sirius Property-Strong results, proposed UK acquisition and £135m capital raise Mkt Cap £1,469m | Share price 138p | Prem/(disc) 65.9% | Div yield 2.9%EventSirius Real Estate's EPRA NTA per share at 30 September 2021 was 97.0c (March 2021: 92.3c), which represents a 7.3% NAV total return over the six-month period.   The NAV performance was driven by a 4.6% like-for-like revaluation gain. The valuation uplift is due to a combination of yield shift (20 bps of yield compression), rental growth and uplifts from the capex programme. The EPRA net initial yield on the portfolio is 6.2% and the average capital value per sqm of €895 is well below replacement cost. Annualised rental income rose by 2.5% on a like-for-like basis in H1. This was predominantly driven by a 2.6% increase in average rental rates. Like-for-like occupancy remained broadly flat at 86%. Cash collection has remained strong with 97.4% collected for the six-month period. The strong operating performance led to a 7.3%% increase in adjusted EPS to 2.93c per share. The H1 dividend has increased by 12% to 2.04c per share (65% payout ratio). FFO per share increased by 12.1% in H1 versus the prior year.Sirius has also announced it has agreed to acquire BizSpace Group for £245m (EV of £380m). BizSpace is a provider of flexible regional workspace in the UK across 72 sites. The portfolio is comprised of 74% light industrial and 26% out of town office assets. The acquisition will be funded by a combination of debt (new and existing) and an equity issue of £135m by way of an accelerated bookbuild. BizSpace's existing management team will remain in place. The transaction is expected to increase FFO and dividends by 11% and will be marginally accretive to EPRA NTA per share.  The net LTV ratio at September 2021 was 36.8%. The BizSpace acquisition will increase the net LTV to 44% and Sirius expects to de-lever towards its 40% target over the medium term. Sirius completed a €400m five-year bond issue in June at an attractive 1.125% coupon. The weighted average cost of debt has fallen by 30bps to 1.2%. Liberum viewSirius Real Estate's portfolio continues to deliver strong operational performance. The company has achieved a material increase in both portfolio occupancy and the average rate per sqm over the last five years. Significant upside remains given the potential for asset management improvements across the portfolio. The average value per sqm of €895 is well below replacement cost and offers scope for further growth. We note the bullish outlook from management regarding expectations of FFO growth in H2 (acquisitions) and over the medium-term through the capex programme and vacancy reduction. The BizSpace acquisition offers the company the chance to enter a new market at scale and replicate its successful operating model. 

[modewheel] 01/6/2021 17:33

Certainly not in any way an expert in share dealings but holding 14k shares in Summit after todays Germany property sell off and the cash retention what makes you think they will come back to the market and how soon?

[irenekent] 01/6/2021 11:06

Most interesting. I am also still a shareholder and happy to remain one. I have a feeling that when they feel the market is ready a re-float will occur as happened before. We should encourage this because this is the only way to get a fair price for our shares. The de-listing probably protected us from the carnage that occurred on the markets last year. Here's hoping.

[bowerdean] 01/6/2021 08:51

A barrage of announcements from Summit over the last few days all visible on their website summit-properties.com
It looks as if nav at 31st Dec 2020 had grown to 2.52 euro, ie about 217p and today’s announcement that they have sold a portion of their German commercial portfolio for 1bn euro also looks positive. I feel certain that were the shares still quoted, they would be up on these bits of news.
Surely time for Summit to do the decent thing and put the minority shareholders out of their misery?

[phbatbjco] 31/5/2021 21:30

You can access it at

hxxps://www.assetmatch.com/app/OurCompanies

However the price for Summit at appx 40p is scandalously low compared to NAV

[mark20690] 29/5/2021 16:14

I am in a similar situation as you, as I am still holding quite a few shares in Summit Properties. Have there been any recent developments of note?
Also, where can I access the trading facility?
Thank you.

[bowerdean] 05/3/2021 09:49

Yesterday I received an email from Tom L-K attaching letter from Chris Le Page, Director of Summit. The Board have discussed my concerns with their legal advisers and a precis of the letter is as follows:

At the time of the delisting, Summit made a tender offer in strict accordance with Take Over Panel rules; there was no legal requirement for the tender offer.
If you didn't participate in the tender that's not Summit's fault.
Summit initiated a Matched Bargain facility. As Summit still has a bond quoted in Luxembourg, ordinary shareholders will continue to receive all company information on their website, over & above what is legally required.
Summit has returned Euros 215m to shareholders. Summit has no current intention of share buybacks. Summit has no control over the majority shareholder, being a separate legal entity, should it wish to buy in the market.
As was fully explained in the Circular for delisting etc, where there is a dominant shareholder it is inevitable that there will be limited liquidity in trading and therefore no surprise that there is a disconnect between share price and NAV.

The only crumb of hope I take away from this is the fact that the majority shareholder, Unifinter which is 100% owned by Summit Real Estate, quoted in Tel Aviv might at some stage decide to buy out the minority or alternatively, in time to come, it could refloat Summit Properties on the market as it has done before.

With the benefit of hindsight one should have been pursuing the ultimate parent compamy Summit Real Estate in Tel Aviv, not Summit Properties in Guernsey as I imagine that's where the major decisions are taken.

If you want someone else to blame for the current situation, how about Mark Barnett, Neil Woodford's trusty lieutenant for many years? The decision to delist was strongly influenced by his putting his ( Invesco's) 27% stake in Summit up for sale. That is when Unifinter stepped in and paid Euro 1.45 for it and initiated the tender offer at the same price, thereby ending up with most of the company.

[phbatbjco] 22/1/2021 11:13

Yes I agree the more people who contact him to express their concerns the better. I think he'd prefer a quieter life on the beach in Guernsey!. When I spoke to him the other day, he was very quiet and couldn't say much as I suspect he couldn't disagree with my points! Anyway here is his response to one of my points

"Further to your call and in advance of your email as discussed, I thought it might be appreciated if I update you on one of the technical point you raised.

In respect of rights to inspect the register (or require a copy, in case you are able to visit the registered office in person) please refer to the following extract from Guernsey Company law. In practical terms you would need to submit a request in writing to the company setting out the information required pursuant to section 127 (4) (a)-(d).

“Rights to inspect and require copies.
127. (1) The register and index of members must be open, during ordinary business hours, to the inspection –
(a) of any member or director of the company to which it relates without charge, and
(b) of any other person on payment of such fee as may be prescribed by the Department or such lesser fee as the company may stipulate.
(2) A person may require a copy of the company's register of members, or of any part of it, on payment of such fee as may be prescribed by the Department or such lesser fee as the company may stipulate.
(3) A person seeking to exercise any of the rights conferred by this section shall make a request to the company to that effect.
(4) A request under subsection (3) shall contain the following information –
(a) in the case of an individual, his name and address,
(b) in the case of an organisation, the name and address of an individual responsible for making the request on behalf of the organisation,
(c) the purposes for which the information is to be used,
(d) whether the information will be disclosed to any other person, and if so –
(i) where that person is an individual, his name and address,
(ii) where that person is an organisation, the name and address of an individual responsible for receiving the information on its behalf, and
(iii) the purpose for which the information is to be used by that person.”

You will find the law in full at hxxp://www.guernseylegalresources.gg/article/94138/Companies-Guernsey-Law-2008-Consolidated-text.

Kind regards,
Tom"

As James says we won't be holding our breath! All the best Phil

[davebowler] 19/1/2021 20:17

Well argued points, all of which I agree with. The FCA has a catch all principle of 'treating customers fairly' I wonder if that is also an avenue worth pursuing??

[davebowler] 19/1/2021 20:15

Thanks for your efforts, Phil.

[phbatbjco] 19/1/2021 15:27

As mentioned, I contacted Tom this afternoon and he asked if I would email him my queries. So here is the text of my email to him just now. He said he is going to pass on my comments to the directors, so we will wait and see if there is a response or not.

The email was as follows:-

"Dear Tom,

Many thanks for taking my call earlier this afternoon.

As I mentioned, I am becoming increasingly concerned about my holding in the company to the extent that I do not feel as a minority shareholder I am being treated fairly.

I would therefore be grateful if you would undertake to appraise the management of my concerns and answer my queries as follows:-

1.0. Although I have tried to find contact details for the directors of the company this has not been possible. I wanted to hear from them what their proposals were with regard to the minority shareholders. I myself, primarily as a result of a family illness, was unable to respond to the offer last year.

2.0. My understanding of UK company law - and I appreciate that this company operates under Guernsey law - is that if minority shareholders do not accept the terms of an offer they are bought out at the highest offer made at that time. At the moment, according to the financial accounts the net assets of the company are somewhat north of €2.2 whereas the shares appear to be traded on Asset Match at about 30p each. Clearly not acceptable.

3.0. There is a principal in UK company law that minority shareholders should not be oppressed. Is this the case in Guernsey law?

4.0. Again in UK company law a shareholder is entitled to a copy of the share register. You mentioned that you thought this was probably the case in Guernsey law as well. If so, I would expect to be able to obtain a copy of the register at either no cost or nominal cost.

I think that dealt with the matters we discussed on the telephone and as I mentioned, although my shareholding is not particularly large it does run to quite a few thousand and there is the principle that minority shareholders such as myself should not be run roughshod over.

Please would you acknowledge this email and I look forward to the points above being answered."


All the best Phil

[davebowler] 18/1/2021 18:50

I and family/friends hold quite a few so will watch this as it progresses.

[phbatbjco] 18/1/2021 17:50

James,many thanks for your reply. I will also give Tom L-K a ring tomorrow and let you know the outcome. It would be interesting to know from the shareholders register how many other minority shareholders there are. I think somewhere buried away in documents published by the company there is a percentage of total capital held by minorities but I can’t find it at the moment.

I see your “chum“ has also tried to contact today - or at least I assume it is him.

Phil

[deltabase] 18/1/2021 16:32

Just tried to contact Tom L-K on the Guernsey phone no. Spoke to secretary, hoping for call back. Will persevere and post on the outcome.