Tamar European Share Discussion Threads

[badtime] 22/8/2011 20:03

Short of funds in my sipp sky ..otherwise i wud hav joined u,,,very tempting

[skyship] 22/8/2011 14:39

Since the share price dropped through the 50day MA a fortnight ago we've had nearly a 20% fall on frankly pretty limited volume. With the 200day MA in near support, a buy looks good to me.

Personally I'm looking for a Special Dividend of perhaps 15p/share once they've sold those Scandinavian assets. The £100m sale = 28p/share; but we'll need to reduce borrowings and maintain LTV stats, so that 15p would be good for starters.

[skyship] 22/8/2011 13:43

Added again - pd 40.9p - 40p seems to be the support level on the chart.

[skyship] 17/8/2011 09:21

& another 10k @ 43p....will now watch & wait again

[skyship] 12/8/2011 16:27

Started buying a few back, so far just 10k @ 43.89p

[skyship] 04/8/2011 10:46

Zangdook – This is the more extensive version from 3rd June. Also bear in mind that Laxey hold 29.8% and will keep them true to their word:

Proposed investment policy

Given the current operating costs of the Company and the costs of finance being incurred, the Board does not believe that the portfolio in its current form is best placed to allow the Company to achieve its investment objective of providing shareholders with an attractive level of income together with the potential for income and capital growth.

The Board accordingly intends to instruct the Investment Manager to make an orderly disposal of the Scandinavian assets held in the Company's portfolio over the next few years. The Scandinavian assets have a current valuation (as at 31 March 2011) of GBP100 million. The Board has been advised by the Investment Manager that the Scandinavian markets are proving to be relatively liquid for secondary assets compared to other Western European markets. Such a disposal programme will be designed to maximise value for shareholders and will be undertaken in a measured way so as not to incur significant bank debt prepayment penalties.

The revised investment policy will therefore exclude new investments in Scandinavia. This change will be subject to shareholder approval. The Board, who are wholly independent of the Investment Manager, and the Company's largest shareholders, will be publishing a circular as soon as practicable containing further information on the proposed change in investment policy and the extraordinary general meeting where the amendment to the investment policy will be considered.

Use of disposal proceeds and current cash balances

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.

[zangdook] 03/8/2011 13:32

For reference, our new investment policy:

to focus on investments in industrial real estate assets primarily across Western European jurisdictions (but with no investments being made in the United Kingdom). The Company will aim to maintain some geographic diversification, and the Investment Manager expects that the Company's investments will be diversified across Western Europe, being made primarily in France, Benelux, and Germany. The Portfolio is expected to be diversified by factors such as geography, industry sub-sector and investment size.
No single investment will account for more than 20 per cent. of the Company's gross assets (at the time of investment). The Company's borrowings will not exceed 65 per cent. of gross assets.

[skyship] 01/8/2011 16:16

Well spotted Scburbs - who knows, we may have to be patient here; but still believe something will happen to give us an earlier payout.

[scburbs] 01/8/2011 15:14

A useful insight into Laxey's thoughts on TEIF.

"Tamar European Industrial Fund ("TEIF")

Tamar European Industrial Fund (formerly known as Kenmore European Industrial Fund) launched onto the AIM market in 2006 and acquired a portfolio of secondary industrial properties across continental Europe with a particular focus on France, Benelux and Scandinavia. As at 31st December 2010, it owned a portfolio of investment properties with a valuation of £251m.

Unlike many of the AIM property funds, TEIF managed the downturn in its markets from 2008 onwards relatively well, despite being highly leveraged at the top of the market. The fund sold a significant volume of property
over the period 2008 to 2010 in order to de-leverage. In total its portfolio shrank from £428m as at December 2007 to £251m three years later. Over the same period, the NAV per share fell from 121 pence to 80 pence which, whilst a signifi cant decline, is nonetheless a far better result than the majority of its peers in the sector.

Unfortunately, the company was still unable to avoid a punitive refinancing in the fourth quarter of 2010 and subsequently recognised that its ability to generate income returns to shareholders had been badly damaged by the higher finance charges it was incurring as a result of this.

On 3rd June 2011, it announced that "the Board does not believe that the portfolio in its current form is best placed to allow the Company to achieve its investment objective". At the same time, the company announced its intention to conduct an orderly disposal of the Scandinavian part of the portfolio (around £100m).

Laxey Partners will continue to engage closely with the board of TEIF to ensure that shareholder value is maximised over the next few years. Having purchased a substantial position at nearly 60% discount to NAV, we are optimistic that the investment should deliver attractive returns over this period.

Funds under the management of Laxey Partners had a total holding of 29.8% in TEIF as at end March 2011."

[praipus] 20/7/2011 14:50

Have you been able to access the RNS titled " Circ re. Change in Investment Policy"?

[scburbs] 20/7/2011 13:31

Praipus, The disposal was good news, but too small to have a real impact IMV.

[praipus] 20/7/2011 13:05

Bit surprised there wasnt a bit of a spike yesterday and today after yesterdays news on a disposal

[scburbs] 20/7/2011 13:03

Nordic property market continues to be the strongest along with Germany.

"Equally, a much clearer pattern of change is emerging than had been the case, with most of the rent rises and yield reductions occurring in the stronger economic areas such as the Nordic markets, Germany and CEE, and the adverse changes mostly concentrated in the weaker southern European countries."

...

The largest decrease [yield] was in Moscow (down 150 basis points to 9%), followed by Oslo, which saw a yield reduction of 30 basis points.

...

The largest increases in Europe occurred in Moscow, where rents increased by 10.5% over the quarter to US $1,050/m²/year and Oslo (up by 9.4% to NOK 3,500/m²/year)."

[skyship] 06/7/2011 08:45

Creeping ever higher - 49.75p bid this morning. Will we see 50p bid today perhaps.

[skyship] 03/7/2011 15:47

A short note just to say that I've opened a new thread using the EPIC "SL" and under the title:

SELF-LIQUIDATION can provide attractive upside...



We are seeing quite a few of these opportunities; and it is hoped that posters will advise of others as they appear.

[skyship] 30/6/2011 15:39

sp hinting at strengthening. Could be the next leg up just around the corner....

[scburbs] 30/6/2011 11:29

Swedish Industrial production rises 9.2% and exports up 15% in Q1 2011. This surely must be driving demand for industrial space and TEIF really needs to sort its Swedish vacancy out and then get shot of the assets.

"The Swedish economy continues to expand, growing by 6.4 percent in the first quarter of 2011, according to new statistics, although GDP growth has slowed slightly.

...

Exports were up 15 percent and imports increased 13 percent, while industrial production rose by 9.2 percent."

[scburbs] 30/6/2011 11:26

Swedish market continues to look strong (12% of TEIF's assets). TEIF should get the 13% vacancy sorted out first, up the average lease length and then they should be able to achieve significant premium to book.

"May 26, 2011 12:17 PM EDT
Positive outlook for investment property market in Sweden

A positive economic outlook and a continued market growth make Sweden's property investment market attractive for investors at home and abroad in 2011 according to international real estate advisor Savills.

The firm reports that by the end of the first quarter of 2011 total turnover reached SEK19.5 billion (€2.18 billion), up from SEK 8.5 billion (€2.07 billion) in the same period of 2010. This quarterly upward trend began last year as investment volumes increased each quarter in 2010 compared with the same quarter in 2009 according to Savills. In addition the volume of retail assets sold in the first quarter of 2011 has already reached half the 2010 year total, at SEK4.3 billion (€480 million).

Overall Sweden's Gross Domestic Product has grown every quarter since the beginning of 2010, a trend which continues into 2011 with a positive GDP growth of 5.5% expected by forecasters.

...

'Prime yields hardened within all property segments throughout 2010 and we have started to see slight closing signs of the yield gap between prime and secondary properties, driven primarily by the strengthening office leasing market, relatively low vacancy levels, the limited development pipelines and the lack of product on the market. We expect to see yields remain stable in most segments in 2011 and forecast that retail yields could strengthen further,' he added."

[skyship] 27/6/2011 14:49

jimbo - thnx for that. Guess we'll just have to await events...

[jimbo3352] 27/6/2011 14:45

The requirement to lodge a TR-1 notification comes from the FSA. Their website FAQ doesn't seem to cover non-compliance. I don't think you can blame the company as it is the shareholder's responsibility to lodge even if non-dom. You could try complaining to the FSA, particularly if you have any grounds for believing the late filing had untoward impact on the market.

[flying pig] 27/6/2011 14:30

If Euro goes down the proverbial tube, what is likely impact on TEIF?

[skyship] 27/6/2011 12:46

Rec'd a reply today - see below. That deals with the Weiss aspect - though personally I feel Weiss should be fined for not ensuring the declaration was made.

As to the lack of declaration of the more recent major trades (3rd June); does anyone have a handle on this - is the Company not able to identify the parties involved; and is it not beholden upon them to interrogate?

Advice anyone...

=======================================================
Dear Mr ...

I understand that you have had some concerns over declarations made by the Company in respect of shareholder trading.

We are aware of the delayed declaration of the Weiss purchase of 2 million. Unfortunately the notification was misdirected and only reached us in June. This should not be an issue in future and we have confirmed with them that there are no other declarations due.

In accordance with the DTR 5.8.4 - The notification obligations following the acquisition of disposal of major shareholdings are individual obligations incumbent upon each direct shareholder. The Company is not able to initiate this on their behalf. Obviously if the Company or the Broker believed that a shareholder was not making the necessary disclosures, this would be brought to their attention.

Thanks and Regards .... Renee McIver
=====================================================

[skyship] 20/6/2011 12:45

No reply yet - have emailed again today for the third time!

[skyship] 10/6/2011 18:17

I have today emailed the Company asking for an explanation of the recent trades, why no RNS & why a bizarrely incorrect RNS re the Weiss holding.

Will post if I receive a reply.

[skyship] 08/6/2011 17:05

You're convincing me I should add further. Currently @ only 5.7% allocation...