Tamar European Share Discussion Threads

[scburbs] 14/3/2011 10:33

Norwegian industrial seems to be performing well [27% of TEIF's portfolio] Take up also seems to be improving so hopefully TEIF can start reducing its vacancy.

"UK, Germany and Norway were the three largest industrial investment markets in 2010, according to new research from Jones Lang LaSalle unveiled at MIPIM today.

...

Norway's fourfold growth was the strongest in the region, propelling it ahead of Sweden for the first time in 10 years and into the top three markets in Europe.

...

Almost every market recorded increasing volumes of take-up in 2010, led by the UK (124%), Russia (102%), Czech Republic (46%), Poland (34%), Germany (32%) and Spain (31%)."

Source EGi

[skyship] 04/3/2011 09:25

scburbs - thnx for that - I think!#~?/

Seriously though, thnx & I do understand that in usual circs the tax is mere accounting puff - a chimera intended to obfuscate and confuse....

Sp doing rather well now; and I dare to suggest that the sub-40p days are now gone forever.

THE GAME CONTINUES - end of the 1st Qtr.......

[scburbs] 04/3/2011 08:59

Skyship,

The NAV of 57.1p assumes they sell all of the properties. In reality they will mostly try and make SPV sales (i.e. selling the company that owns the asset) and, therefore, this tax will not be triggered.

A purchaser may seek an adjustment for the inherent tax liability that they acquire when buying an SPV, but they already adjust the property valuations for this (see note 9 2009 accounts).

However, if local practice changes such that everyone wants to buy assets rather than SPVs or the market level of discount charged for taking on inherent tax liabilites increases then part of this gap may crystallise.

Over the last few years the gap between the two NAVs has been closing which might imply that they are managing to make disposals whichout too much of this inherent tax being triggered (i.e. they are making SPV sales). However, it is very hard to tell exactly.

Unfortunately this means you can't entirely ignore it, but in reality most of it should not trigger, although some might. Or in others words it is as clear as mud!

[skyship] 04/3/2011 08:15

I still get confused over the defd tax element! Is it right to just ignore it as a mere accounting nonsense which won't really be required?

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After deducting all deferred tax, whether recognised on the balance sheet or not, NAV at 31 December 2010 was 57.1 pence* (31 December 2009 - 53.7 pence).

* Adjusted net assets of GBP113,106,000 (2009 - GBP111,693,000): net asset value of GBP116,649,000 (2009 - GBP116,366,000) less deferred tax assets of GBP8,260,000 (2009 -GBP10,140,000) plus unrecognised deferred tax adjusted for within initial purchase price consideration of GBP5,029,000 (2009 - GBP5,779,000) less unrecognised deferred tax contingently adjusted for within initial purchase price consideration GBP312,000 (2009 - GBP312,000)

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[scburbs] 04/3/2011 07:53

Results were pretty dull as expected. With vacancy still high they need to get moving on reducing it. Definitely time for someone to take action to realise the inherent value.

[farnesbarnes] 04/3/2011 07:42

Those results might prompt the tanks to fire a shot across management's bows. It will be interesting to watch the volumes over the next week.

[skyship] 04/3/2011 07:24

RESULTS FOR THE YEAR ENDED 31 DECEMBER 2010

SUCCESSFUL REFINANCING OF GBP80.5M STRENGTHENS COMPANY'S CAPITAL STRUCTURE

Highlights:

-- Royal Bank Of Scotland debt, that was due to expire in April and June 2011, has been successfully refinanced with GBP80.5m from Deutsche Bank. Advanced discussions are underway on refinancing the remaining tranche of debt due to expire in November 2011.

-- Adjusted net asset value* before deferred tax liabilities per share at 31 December 2010 of 80.8 pence, up 1.0 pence from 79.8 pence at 31 December 2009.

-- Successfully sold 10 assets for GBP35.6m at 1.8% above valuation.

-- Net gearing if all cash balances were applied would be 56%.

-- Underlying portfolio values have increased by 0.3% over the year.

-- Intensive asset management and ongoing leasing activity resulted in 71 new leases signed and 79 leases renewed, representing over 155,000 sqm of space and generating GBP9.0 million of gross annualised income.

-- The Board continues to consider it prudent to defer making a decision on paying a dividend until the refinancing of all debt facilities has been completed.

========================================================================

So, no dividend but NAV up to 80.8p & effective LTV now @ just 56%. Also:
",,,In light of the Company's ongoing refinancing of the Group, the Board is undertaking a reappraisal of the overall direction of the business so that it is best positioned to provide sustainable earnings growth and to maximise shareholder value."

I suspect that in light of Laxey's tanks parked on the lawn with 29.6%, the maximising of shareholder value will arrive through other means!

[farnesbarnes] 18/2/2011 18:55

60p would be fine by me.

[skyship] 18/2/2011 18:35

FB - well spotted; though the trading prices seem to be different!?

Anyway, intriguing for sure.

GAME ON for sure..........

I just hope that neither party chickens out at an absurd price, as Petchey did 18months ago when he sold TAP to CIC at less then 50% of NAV!!! TAP holders right royally shafted that day. Can't see that happening here and personally I think the final outcome might be a 60p offer from Laxey or Brockdale (Joe Lewis). I also think it might come sooner rather than later...

[skyship] 18/2/2011 17:27

Today's actions can only be described as intriguing:

Firstly:

Rensburg sell 1.42m (1.02%), reducing their holding to a smidgeon under 5%



Secondly:

Today's trades: 3 widely interspersed and awkwardly priced trades, totalling 1.2995m (0.9%)

No idea what these mean, nor why the Hanovers sale has not yet been declared.

[skyship] 18/2/2011 11:34

Good point - Finals in just 4weeks. Yes, why not restore the dividend, or some interim semblance thereof. All part of the defence versus the LAXEY tanks...

[timanglin] 18/2/2011 09:08

Does anyone have any thoughts on the likely dividend payment? At one stage, I think, they were paying 0.75p a quarter? Do you think a special dividend is on the cards?

[orange1] 18/2/2011 08:20

Not sure you're right - you got them at yesterday's closing price.

[skyship] 18/2/2011 08:10

Someone makes the mistake of buying at best in the first 5/10mins. So had to pay 39.575p instead of the 39p they are likely to be on offer at shortly!

Still, over a few months that mistake shouldn't be of concern...

[scburbs] 17/2/2011 10:59

With France and Nordic regions representing TEIF's main markets the 2010 reported performance for these markets is very positive.

"The UK, which was ahead of the curve when its recovery started in mid-2009, saw the strongest capital growth in 2010 of 8.9%.

It was followed by France on 4.4%, the Nordic region with 3.4%, and Germany at 1.4%."

Source EGi

[dick grasso] 17/2/2011 08:25

I think there's a good chance we will see 40p+ soon enough squib!

[squib3] 17/2/2011 08:14

Picked a few more up at 38.5p, wasn't easy to get them!

[skyship] 16/2/2011 10:58

Enviro - this is the activist manager LAXEY we are talking about! Their history suggests that the status quo is not an option.

[dick grasso] 16/2/2011 10:29

I'm not sure I can add anything of further relevance to your post SKYSHIP, however I did purchase my first batch here yesterday immediately after the announcement. Purchase was based mainly on the substantial increase from Laxey but also the TA on the chart, I too suspect it has a little further to run!

[envirovision] 16/2/2011 10:29

How can you be so sure they may not have the slightest interest in taking them out?

This could just be a long term holding for them because they felt underweight in the sector. Infact it may even scupper plans others had now.

[skyship] 16/2/2011 10:25

I admit to being surprised that these are still available sub 40p.

I am interested in reading others' views on what we might expect here, as at the moment I have a 6% allocation, having increased it from just 4% yesterday AM. I suspect I should be taking this up to minimally 7.5%.

My thinking is that with Laxey now totally upfront with their commitment - things are going to happen one way or another. Either Joe Lewis will take the Laxey stake and make a bid, or vice versa. Maintenance of the status quo just isn't an option.

It may readily be argued that after the refinancing TEIF are cheap in the 30s even WITHOUT the Laxey tanks on the lawn; so why are we still at a mere 38p!?

I suspect the share price won't remain here much longer....

[skyship] 15/2/2011 18:00

Property Week picks up on the news:

=====================================================

Activist investor Laxey Partners this afternoon emerged as a 29.5% shareholder in a £49m listed European fund formerly part of the Kenmore property empire and backed by Joe Lewis – just below the threshold where it would have to launch a takeover bid for the company.

Funds managed by Laxey today revealed they had increased their stake in the Tamar European Industrial Fund from 5% to just below to the 30% at which it would be required by the takeover panel to make an offer for the company.

The fund has a market capitalisation of £49m and industrial property assets across the continent valued at £268m at 30 June last year.

It was set up and floated by John Kennedy's Kenmore, and managed by a subsidiary of Kenmore. When the Kenmore group of companies collapsed late in 2009 a new company, Tamar Capital Holdings, was set up to manage the fund, headed by former Kenmore director Rob Brook and backed by billionaire Lewis. Lewis now owns more than 12% of the fund.

Laxey typically takes stakes in underperforming companies and attempts to change the management or force the sale of assets and the return of cash to shareholders. In some cases, as with AIM-listed Italian investment fund Spazio, it carries out a takeover of the company.



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[scburbs] 15/2/2011 17:30

Now that's the sort of move I like!!

[mangal] 15/2/2011 15:37

Well spotted Skyship. Thanks to you I bought in just after seeing your post.