Tamar European Share Discussion Threads

[scburbs] 20/9/2012 13:26

Good to see a Swedish stimulus package which should help TEIF get the 20% vacancy down to facilitate the sale of the remaining Swedish assets.

"Sweden has placed the emphasis on growth and stimulus in its budget for next year even as worries increase about an economic slowdown.

Anders Borg, the centre-right finance minister, on Thursday unveiled SKr23bn of initiatives to boost the economy, including a big cut in corporate tax, investment in infrastructure and measures to tackle youth unemployment."

[praipus] 14/9/2012 17:22

Not worried about asset split thats diversification of sorts. Dont like the discount or the fact it hasnt been mentioned in the accounts.

Agree re capital return far too slow seen it before with REH cash gets spent on salaries and fees while the assets shrink and the shareholders end up with next to nothing and the board get seen as unemployable. Manage your assets sell while you still can IMHO.

[skyship] 16/7/2012 15:27

140m shares in Issue, so 10p/share easily done to kick things off - presumably costs pretty well fixed, so make that 15p/share...

[tiltonboy] 16/7/2012 13:10

"The Investment Manager believes there are significant opportunities for investment in Western European markets. However, both the Board and the Investment Manager are conscious of the significant discount to Net Asset Value ("NAV") to which the Company's shares currently trade. Therefore the Board will only sanction investments in such opportunities where the Investment Manager can demonstrate that the return that can be generated from the investment could reasonably be expected to provide better short to medium term value than the Company returning the capital to shareholders at NAV less costs or by way of dividend.
Should the investments put forward by the Investment Manager not meet this criteria, they will not be sanctioned. If there is a material build up of cash on the balance sheet, which has little prospect for near term investment, the Board shall, subject to the ongoing working capital requirements of the Company and applicable laws and regulation, seek to return cash to shareholders. The Group currently has free cash of GBP14.9 million."

[alanji] 16/7/2012 13:07

Manager has incentive fee if distributions are over 40pps unless it has been changed.

[skyship] 16/7/2012 13:03

Yes, a disappointing price, though perhaps they had lifted the valuation substantially at end March.

Still, further grist to the mill as they gradually wind down to some real value; though whether we shareholders will see a benefit is surely yet to be specifically stated. It's all taking so long I've forgotten whether they unequivocally promised a tender offer or capital repayment in some form...

[scburbs] 16/7/2012 12:44

The below equates to £19.18m cash (9.3% *£206.2m)

"As at 31 March 2012, the Fund had debt levels, representing gearing, on its total property value of 58.2%. If all free cash balances within the Fund were to be applied to reduce the drawn debt facilities it would reduce gearing to 48.9%."

Since 31 March they have realised disposal proceeds (including today's) of £34.83m, assuming 60% of that (broad brush) goes to the bank and in transaction costs/discounts they will be up to £33m (23.5p/share). Hopefully they are getting this up to the parent company to help derisk the remainder.

[scburbs] 16/7/2012 12:32

The biggest asset has gone. Pretty disappointing price for a long term lease to Toyota, but very positive bearing in mind where the share price is (other than not mentioning how large the tax discount was!).

Good news on the French leasing. Definitely time for them to be thinking about a tender offer now.

"The transaction achieved a gross sale price of £15.65 million (NOK 148.35 million), prior to discounting for tax, reflecting a net initial yield of just over 8.5% and a 6.1% discount to the March 2012 valuation."

[skyship] 04/7/2012 18:18

So £Sterling has been strong versus the N.Krone - yet TEIF breaking out at last - patience being rewarded...

[scburbs] 06/6/2012 11:18

Not a great disposal price, but good to see some progress on disposals after the recent slow down. The disposal price is around 9% off the 31 December valuation in SEK terms and c.14% in sterling terms (although the sterling NAV impact will be partially mitigated by a lower sterling debt number).



Definitely time for them to start enhancing NAV through share buyback/tender offers - whilst keeping gearing prudent.

Achieving a good price on the sale of the large Norwegian asset leased to Toyota is still critical. It would also be good to see sterling weaken a bit against NOK.

[scburbs] 30/5/2012 17:12

Praipus,

For a company in wind down phase a share buyback materially below the realisable value (accepted the realisable value can currently only be estimated) is a no brainer for the remaining shareholders as it enhances the residual realisable value per share.

Also a series of increasing tender offers can have the benefit of stepping up the share price as the weaker holders are taken out and the company's status as a buyer is known.

[praipus] 30/5/2012 17:05

Still can not understand why companies buy back their own shares rather than pass the cash back to shareholders.

[scburbs] 30/5/2012 16:05

Let's hope this is a sign that they are about to start buying shares in volume.

"(a) the maximum number of Ordinary Shares hereby authorised to be purchased shall be 14.99 per cent of the issued Ordinary Shares on the date on which this resolution is passed;"

[skyship] 25/4/2012 16:38

Baillie Gifford bought 350k on 20th April - took them through the 5% level...

[skyship] 10/4/2012 09:01

You would have thought so wouldn't you....but it seems as though they may wait until they've completed the Scandinavian Disposal project.

[scburbs] 10/4/2012 08:15

Yes, very good news. It is pleasing to see the French asset (which is clearly a poor asset) being sold at a substantial premium as it shows they have already made valuation adjustment to poor quality assets (albeit this is a singular example).

The Norwegian Toyota leased asset sale is the one I am particularly waiting for.

Time for a share buyback/tender offer with all these proceeds?

[skyship] 10/4/2012 08:08

More good disposal news - see Header

[scburbs] 19/3/2012 17:58

If sold at book the disposals completed after 31 December represent another £26.2m of proceeds. This takes net LTV from 52.5% to 46.2%. Also they are hopefully maintaining an increased central cash pot (as opposed to using all cash to pay down debt) to underpin minimum returns to shareholders.

If they can shift the Toyota property at a above NAV due to the reletting then that should help get the share price moving (as would an initial return to shareholders or ideally a share buyback/tender offer). Between 30 June 2011 and 31 December 2011 (prior to new lease) the market value fell from £17.234m (7.5% yield) to £16.053m (7.5% yield), which looks primarily due to FX as the yield is constant.

"20. Post balance sheet events

In 2012, the sale of the assets at Nurmijarvi (Finland), Ostmarkveien and John G Mattesonsvei (both Oslo, Norway), which were unconditional at the year end, were completed. In addition, sale of the asset at Vaulx en Velin (France), which was unconditional at the year end, is expected to complete shortly. At the year end, these assets were included as assets held for re-sale in the Consolidated Statement of Financial Position.

In addition to the assets whose sale was unconditional at the year end, the Group has since entered into binding agreements to sell the assets at Helsinborg (Sweden) and Disenaveien (Norway) and two further units at Sint-Pieters-Leeuw (Belgium). The combined fair value of these properties was £9,232,000 as included in the investment properties balance at the year end."

[skyship] 19/3/2012 08:40

Agreeing with Zangdook - its all rather unnecessarily vague! Still, the 4%+ yield and the 50% NAV discount does surely suggest further progress for the share price - 40p by the end of the week anyone?

[envirovision] 19/3/2012 08:40

Market likes it, will it break 40p this week ?

Zangdook, why would they need an amendment, is there a covenant preventing it ?

[scburbs] 19/3/2012 08:37

Maybe that is why there is no explicit plan! However, it is there in black and white. The investment manager only advises on disposals, the board is free to reject if it so chooses. However, given Laxey and the other activist shareholders I suspect any sales will be approved.

If the plan was only to sell the Nordic assets then 70p would be one tough target to hit! (40p is not a bad target off just the Nordic assets).