The Local Shopping Reit Share Discussion Threads

[skyship] 24/5/2018 07:33

Pretty positive update - at this rate may end up with more than my planned 36p:

[tiltonboy] 24/5/2018 07:33

No mention of the big portfolio sale, so I wonder if the announcement this morning is a reflection of it being split up. It would be nice to think it was in addition, however!

Looks like the online auction produced some great results, and overall a 5% discount to shift that much stock is very pleasing. Looks like another 50 properties could be gone by the end of September!

I will try and clarify the above.

[frazboy] 24/5/2018 07:27

Interesting update. So, how do the sales of those 15 properties fit in with the 30 or so properties for which the company was in the process of negotiating sales. Are they part of the same deal? I think the answer is yes. Good prices, happy.

Not so sure about the other 18 sales - I thought they had sold 17, for a little more. Still, premium to NAV prior to costs, not bad.

[cockerhoop] 22/5/2018 13:24

As I said at the time I've no idea why Duncan got involved here at all (at the inflated price he paid). He would have been far far better off buying back THAL shares for cancellation. Although THAL shares are at the 'Duncan discount' they are because justifiably the market is worried about how he'll deploy the money.

[gfrae] 22/5/2018 12:05

It is very unlikely would be a buyer of these at the moment when they can buy their own at an even bigger discount to NAV.

[hillofwad] 21/5/2018 07:10

Thalassa always seem to be wheeling and dealing so it's difficult to understand their position here . OK they failed to get a seat on the board so you might have anticipated them following through with a full on bid?
Are they waiting for the portfolio to trim down to a bite size to snap up the remainder cheaply and hopefully turn a modest profit on their investment at 36p?
So far they have buried a chunk of money doing SFA for a few years

[frazboy] 16/5/2018 18:16

Assuming wrap up costs and 2018/2019 operating loss of £0.5m, and wind up by end March 2019, and the market currently thinks our remaining assets are worth 82.5p in the £ after adjusting for a RoR of 10% for capital from now until then.

Where are these results.

[frazboy] 15/5/2018 17:09

Agreed. So, around ~83 or so left to sell. I think we'll get half year results in the next day or two. Who knows, we may even get an estimated liquidation value.

[tiltonboy] 15/5/2018 16:48

No major winners, though a couple of pleasing results to balance the disappointments. For the sake of 5k, we might find those offers are accepted. Hoped for a bit better, but at least another lot have gone.

[frazboy] 15/5/2018 16:40

I think that's a total of:

£1.438m Sales Price

vs.

£1.335m Guide Price

So, a 7.715% premium to guide, but a good few percent(5% to 10%?) below NAV, and that doesn't include lots 130 & 132. Not the best of days. It does look like property in the £400k+ range may be sticky

[frazboy] 15/5/2018 16:12

If I'm reading the website correctly Lots 130 & 132 are available for 5k over the last bid price (so, 230k and 400k respectively). These maybe some of the units that Hillowad was talking about taking a haircut on!

[tiltonboy] 15/5/2018 15:44

Disappointing start to say the least.

Lot 89 - just about went for 50k, but had hopes for more.

Lots 130 & 132 - didn't even meet reserve

Lot 133 - at least went at 270 v 250k guide

[tiltonboy] 09/5/2018 17:29

Hopefully down to 50/60 properties after two rounds each of Allsop and Acuitus auctions, further Private Treaty sales, plus another Online Auction perhaps in September.

I'm more comfortable with the smaller lots now than the larger assets. Hopefully they can be shifted off-market.

[frazboy] 09/5/2018 16:38

Hi Hillowad,

I'm not sure there were ever any real cherries left to pick, but, the remaining properties are largely made up of the "core" that the company marketed as a whole, as they were deemed better quality. Perhaps not true for all of them... e.g. the 25k guide price shop in Eastbourne that had some coverage on here a couple of weeks ago

DS's most recent comment on LSR, was, that is was a "cash management position", so I doubt he's interested in buying what remains. But you never know. I think 36p would secure what remains, but the board would have to recommend it, indicating that this would be around the likely wind up valuation.

As for the duds, I was expecting a parcel of perhaps 40 properties to go through at the end of this financial year/start of next financial yaer, at perhaps, a 15% discount to NAV, just to ensure that the rapid wind up is achieved.

[hillofwad] 08/5/2018 12:57

Frazboy

All I know is what some west end investment agents have said who have undertaken some due diligence on behalf of potential purchasers on the properties there are no particular cherries left to be picked .

Difficult to answer your question as at some stage there wont be enough properties remaining to justify the company existing so likely to wrap up the remaining few in a block sale to finish things off

Its not unreasonable to expect some duds in a large portfolio especially with all the grief on the High Street



You would have thought though where are Thalassa in all of this if they thought 36p was a good price to pay for their holding they will come up with an offer at some stage

Certainly interesting

Gfrae

If the purchaser is VAT registered they will get the VAT back

[gfrae] 08/5/2018 12:30

Re. The Rotherham property there is VAT to be paid. So anyone buying liable for VAT would only be receiving a yield of just over 10 % at £800,000.

[frazboy] 08/5/2018 12:07

but hillowad, even then, how much do you think those growlers would rub off the NAV?

[hillofwad] 06/5/2018 09:02

Very satisfactory ,so far so good . Just got the feeling that hidden at the back of the portfolio somewhere there are a couple of growlers where the tenant has gone west

[tiltonboy] 06/5/2018 08:00

hills,

What did you make of the online auction results?

[hillofwad] 06/5/2018 04:33

Actius

Should be able to get a quick steer on Hinckley Lot 46 as the adjoining block of shops on Station Road is up for sale Lot 44 which should be interesting.

As with Rotherham all these shops come with leases with break clauses so buyers factoring in rental voids into their bids .Rotherham also at £800k plus takes out a lot of individual punters

Surprised that they didnt get this one away by private treaty at around this sort of level Perhaps they have had some interest hence the auction?
The neg is the resi uppers have been sold off on along lease so there is no play there

Certainly will be interesting to see where these prices fall Should imgaine though that the book values will be fairly full on these

[frazboy] 03/5/2018 18:11

"Rotherham is an interesting one, and being one of the largest remaining assets, a 12.44% yield is not what I wanted to see"

Yes, and that yield figure does not include the empty shop (no 6), so the actual yield would be more like 13%+ (occupied). I would have thought the Tesco would act as a good draw for businesses which benefit from the footfall. I'm hopeful of a fair bit more than guide.

I would hope to see North of £1.5m for those 3 properties.

[tiltonboy] 03/5/2018 12:03

I will let the experts do that

[sleepy] 03/5/2018 10:05

Tilts - perhaps you’d like to buy it and then do a breakup?

[strathroyal] 02/5/2018 23:12

Tend to agree. I had assumed that this was one of the five remaining £1M+ properties so that seems to me a potentially large loss.