The Local Shopping Reit Share Discussion Threads

[tiltonboy] 15/5/2017 16:51

Looks like Internos are really ramping up the offers with 17 in the next round of Pugh auctions. Plenty of vacant stuff in there, including one they might need to pay someone to take away!

[strathroyal] 11/5/2017 16:41

Hillofwad - The share price certainly suggests a buyer of the whole lot will have to get near 40p. I wouldn't be surprised if somebody is already sniffing around as Internos seem intent on selling everything that goes to auction, even if at reduced price post auction. Heneage Road (Pugh lot 112) has now gone.

[tiltonboy] 11/5/2017 15:47

There will undoubtedly be a rump, but with sub 200k properties now only forming 25% (by value) of the portfolio, the shape of it appears to be improving. Of course, some of the higher value properties may not fetch what they are in the books at, but the evidence so far suggests that might even go at a premium.

Allsop and Acuitus auctions the week after next will give another indicator of progress, and I look forward to them with anticipation.

[frazboy] 11/5/2017 15:44

Hillofwad - I though that leases were being refreshed? Why would you assume that the average length of a lease is shortening?

[hillofwad] 11/5/2017 15:32

Strathroyal

Think you are being very hopeful at 40p At some stage they will have to package the rump off as a job lot with appropriate discount Remember some of the properties will be eroding in value as time goes by as lease lengths are shortening and therfore security of income

[hillofwad] 11/5/2017 15:25

Talking about a portfolio sale Not suggesting 20% but trying to ascertain what discount would be required to shift the lot Shouldn't think it would be less than 10%

[badtime] 11/5/2017 13:19

Little bit of share price action

[strathroyal] 11/5/2017 08:40

The results look pretty decent to me. If Internos have been able to sell so many of the weaker properties at close to NAV, this bodes well for the better properties. Debt is coming down in line with sales and the only negative I can see is the large percentage of vacant properties. Whilst these are presumably a far smaller percentage of NAV, they will still be a drag on the eventual sale price.

I'm still looking for around 40p.

[tiltonboy] 11/5/2017 08:04

hillofwad,

Why would they take a 20% discount on the better quality properties. The process so far has seen sales made on aggregate at close to NAV. Of course there is some dross still around, but I'm pleased with progress so far.

[frazboy] 11/5/2017 07:41

On the first point: "Investment management fees have increased primarily due to a higher amount of sales fees payable on the back of the accelerated sales programme. The minimum investment management fee falls away in July 2017, and this will be reflected in the September 2017 financial statements (see note 15)."

On the second point: none of us would be very happy with that!!!

[hillofwad] 11/5/2017 07:24

The overhead is now nearly £1m which is 15% of the rental income ,Suspect the time is fast approaching as indicated for a portfolio sale. The admin cost of collecting this income is ridiculous

So the question is how much of a discount from 43p a share will be required to attract a buyer like the William Pears Group who have a portfolio of similar fodder

20%? Thalssa wouldnt be very happy with that

[jamiejark] 05/5/2017 17:27

It's a similar story for Allsop:

Of the 156 lots offered this time around, 131 were sold, reflecting a success rate of 84%. By comparison, last March, the auction house sold 92% of the 148 lots in the catalogue and raised £101m.

“It was a very strong day - stronger than we thought [it would be],” said George Walker, director at Allsop Commercial. The auction house had been “cautious̶1; prior to the sale due to the previous year’s exceptional result, he admitted, and had been “surprisedR21; by the amount sold.

“The room was full of very confident private investors and more overseas buyers than prior auctions,” he said, adding that a number of funds were represented in the room, one of which bought a health centre in Norwich for £2.9m from a guide price of £2.4m, reflecting a 5.2% yield.

[jamiejark] 05/5/2017 17:25

The auction houses seem pretty bullish at present with Acuitus reporting the following(Property Week):


Some 74 of the 87 lots offered at the 30 March auction were sold, reflecting an 86% success rate and raising a total of £47.3m.

A number of bidders from the Middle East, India and the Far East were very active in the room, and bought some of the highest value lots.

“Competitive bidding consistently saw lots sell well above their reserves, and the sale attracted national and international investors,” Auterac said.

Sixteen lots sold for more than £1m each, the largest being a 6,480 sq ft mixed-use office and leisure building in Guildford, Surrey, which sold for £2.45m from a £2.3m guide. This reflected a yield of 4.99%. In London, a 7,973 sq ft Belgravia office investment at 13 Grosvenor Gardens sold for £1.5m from a guide price of £1.375m, a yield of 1.98%.

Local appeal

Industrial lots also proved popular. An 8,196 sq ft property in Crawley, which was guided at £875,000, sold for £1.11m at a yield of 5.9%, while an 18,961 sq ft freehold warehouse investment in Harpenden sold for £1.79m against a £1.4m guide price, at a 6.34% yield.

In addition to the overseas interest, local buyers also made significant acquisitions, including Raeburn House, a city centre office scheme in Edinburgh, for £1.81m. The property was the largest of the 33 Scottish lots to go under the hammer last week and had been guided at £1.75m.

“Investors are making it plain what they demand, so the ball is really now in the sellers’ court.

If they supply the right assets, they will sell at good prices,” said Auterac.

The next Acuitus auction will be held on 25 May at the Radisson Blu Portman Hotel in London.

[tiltonboy] 04/5/2017 15:52

strath,


...lol...I fell for 55 as well. Apparently that was sold a couple of years ago, and is back on sale again, according to Internos .

[strathroyal] 04/5/2017 12:51

Tiltonboy - I've got 8, of which 5 are in Scotland - 48, 55, 57, 64 & 67.

[cockerhoop] 04/5/2017 10:34

Does anyone believe they've already got a trade sale of the remaining parcel of properties lined up (circa 200) and are just tidying up surplus properties to order whilst collecting the rent on the parcel?
I can dream but it would make the end game quick and clean!

[tiltonboy] 04/5/2017 10:10

Looks like 7 properties in the Acuitus auction on 25th May.

Four in Scotland, two in Wales, and one in East Anglia. Some pretty mouthwatering yields on offer at guide.

[deepvalue2015] 02/5/2017 18:56

any links to the Allsop auction results? Not as obvious as the Pughs!

[badtime] 02/5/2017 17:58

Couple of peeps bought at 34p ...probably slight regret ..was that a 50k sell that knocked the share price back down?

[tiltonboy] 02/5/2017 16:14

Looks very positive to me.

The company have announced the intention to market a "core" portfolio of 200 properties. By my reckoning, they only have 247 properties left, so it would seem that there are only 47 non-core assets left to sell. How much of that is "dross" is the question. With four Cooplands shops in the Allsop auction, it looks like the "tail" of the portfolio is diminishing at a rapid rate. To be achieving premia at this stage is very encouraging.

[frazboy] 02/5/2017 16:09

What's perhaps most reassuring is, that the properties sold in the private treaty sale are relatively low priced, but still went for a premium - it is these properties that I had assumed would struggle to sell (the Heneage road property in Grimsby being an extreme example).

[frazboy] 02/5/2017 15:48

Pretty positive

[tiltonboy] 30/4/2017 19:34

The three properties all had options to determine the lease, which were not taken up, so there may be an increase in rent.

As hillofwad mentions, the Cooplands properties sold well in the last Allsop auction with the two shops going on 7.05% and 7.56% yields. I would be happy with similar results this time round.

If they went on an aggregate 7.75% yield, it would raise £540k v 470k guide (at bottom end of guide)

It will be interesting to see what Lot 96 goes for as this is but a few doors away from our largest asset.

Disappointing that there aren't more in the auction, but maybe we have a few in Acuitus a couple of days later!