Town Centre Securities Share Discussion Threads

[nickrl] 18/7/2022 17:56

Master Investors applauds TOWNs buyback approach

hxxps://masterinvestor.co.uk/equities/town-centre-securities-a-look-at-buybacks/

[spob] 15/7/2022 14:09

Current nav might be over 350p, when we see the final results figures in September

[spob] 15/7/2022 13:44

I did not read the full RNS from this morning


they state NAV was 305p back in December

they have just had a windfall boost to nav of around 33p per share

giving an approx nav of 338p per share, (excluding any other changes or dividends paid in the last 6 months)

[nickrl] 15/7/2022 12:56

spob i doubt nav will be over 300 at next valuation if it was just based on its property portfolio but for sure it will still be substantially above the tender offer price.

[nicholasblake] 15/7/2022 12:21

@baronet The on market buy backs haven’t yielded much stock. Off market tenders are much more likely to prove successful.

[battlebus2] 15/7/2022 12:14

Personally I think it’s a positive move and gives those who want to sell an improved price for their shares.

[baronet bill] 15/7/2022 12:11

Quite apart from the legal expenses and associated professional fees: Can anyone explain the real reason for this Tender Offer, when TCS already has the authority to buy shares in the open market?

[bondholder] 15/7/2022 11:40

Nobody is being forced to sell at the offer price. Surprising that the share price reacted so little to the car park sale announcement the other day!!

[spob] 15/7/2022 09:44

Anyone accepting this offer is basically giving away pound coins for approx 60p

[spob] 15/7/2022 09:40

They must think we were all born yesterday

[spob] 15/7/2022 09:32

they can stick the tender offer where the sun does not shine

do a tender offer at net asset value (adjusted upwards after the recent windfall gain)

[playful] 15/7/2022 08:52

We are enjoying ourselves here

[bondholder] 15/7/2022 08:00

The directors are not going to participate in the tender offer. The company is in a sense and to a degree being taken private.

[spob] 14/7/2022 10:10

surprised they haven't taken this private to be honest

[spob] 14/7/2022 10:08

pound coins for 50p

easy money

[spob] 14/7/2022 10:02

Sale of Investment in YourParkingSpace

The Company is delighted to announce the unconditional sale of its equity investment in YourParkingSpace Limited ("YPS") to Flowbird SAS for total cash consideration (net of fees and associated deal costs) of up to GBP20.7m (the "Sale"). The YPS platform connects drivers with over 350,000 privately owned and commercially operated parking spaces across the UK, available to book hourly, daily or monthly via the company's website or mobile app.

The consideration for the Sale comprises the following:

-- Initial net cash consideration for the Company's equity shareholding of GBP9.6m

-- Deferred consideration of GBP7.5m in aggregate, due in two instalments: GBP4.4m 12 months after completion of the sale, and GBP3.1m after 24 months

-- A final contingent element of cash consideration, based on the trading performance of YPS in the 14 month period following completion of the Sale, of up to GBP3.6m

In addition, the Company will receive repayment in full (including all accrued interest) of the amounts loaned to YPS, comprising a gross cash receipt of GBP1.95m.

At 31 December 2021, the book value of the Company's investment in the YPS equity stake was GBP1.47m, with an additional GBP1.53m loan to YPS. The Sale will be accretive to both NTA and earnings for the Group, and the disposal proceeds will further reduce net borrowings and will be redeployed into other accretive opportunities in due course. As the Company holds a non-controlling interest in YPS, 31 August 2021 results were not consolidated into the Group accounts. As YPS is not consolidated, the Sale will not result in a Group deconsolidation.

Background to the YourParkingSpace investment

The Investment enabled the Company to further leverage its car parking assets through the YPS technology platform.

The Company's initial equity interest was acquired on 16 November 2016, through the acquisition of 9.375% of the issued share capital of YourParkingSpace Limited from the two founders of the business. This investment of GBP0.415m was funded from the Company's cash resources (the "Investment").

At that time the value of the gross assets the subject of the Investment was GBP0.415m. The Company's non-controlling interest in YPS was held at carrying value and was not consolidated into the Group accounts.

Under the terms of a separate option agreement the Company was then able to acquire further shares in YPS from the founders over the course of the following years - ultimately taking the cost of investment in YPS from GBP0.415m to GBP0.965m.

The TCS Board have relinquished their remaining seat on the Board of YPS as a result of the Sale.

Ben Ziff, Managing Director: CitiPark PLC | TCS Energy | Technology Investments commented:

"Since making our initial investment in YourParkingSpace in November 2016, the business has gone from strength to strength and has now evolved into much more than just an online broker for reselling space. It has become a true disruptor in the parking sector.

I wish YPS and its founders all the very best for the future and look forward to watching them evolve even further.

The consideration from this sale helps to further strengthen the TCS balance sheet whilst giving it the opportunity to invest in our development pipeline and make strategic technology investments.

TCS remains one of the most proactive land owners in the UK always thinking outside of the box and constantly striving for innovation with family business values at its core."

[spob] 14/7/2022 09:47

Your Parking Space entrepreneurs toast £120m sale to Flowbird

The company's sale will trigger a substantial payout to Town Centre Securities, the London-listed property company which owns a minority stake, Sky News understands.
Mark Kleinman

City editor @MarkKleinmanSky

Monday 11 July 2022 21:22

Your Parking Space


A pair of entrepreneurs who founded an online parking platform nearly a decade ago are close to becoming multimillionaires as they finalise a deal to sell the company for £120m.

Sky News has learnt that Harrison Woods and Charles Cridland, who set up Your Parking Space in 2013 to enable motorists to generate revenue from their driveways, are close to concluding a deal with Flowbird, a giant US rival.

Sources suggested the deal could be announced as soon as Tuesday morning.

If completed, it will crystallise big paydays for the co-founders, both of whom are in their 30s, as well as Pelican Capital, a private equity firm which invested in the company in 2020.

It will also crystallise a £25m windfall for Town Centre Securities (TCS), the London-listed property company which owns a stake of approximately 20% in Your Parking Space.

The payout for TCS is likely to necessitate a stock exchange announcement because the company has a market valuation of only £70m.

Flowbird describes itself as a smart mobility company which operates in 80 countries and processes 350 million transactions annually.
More from Business

The deal will be notable because it will come as many early-stage British companies are finding securing funding increasingly difficult against a dire backdrop for listed and private technology valuations.

Klarna, the buy now, pay later credit provider, confirmed a weekend report by Sky News that it had raised $800m at a post-money valuation of $6.7bn - a huge slump from its $45.6bn pre-money valuation just two years ago.

On Monday evening, Your Parking Space and TCS both declined to comment.

[nickrl] 13/7/2022 21:27

bondholder thanks for digging that out and that would be some windfall

[bondholder] 13/7/2022 20:07

Book value in accounts (2021) 1.5 million

[spob] 13/7/2022 11:04

If the press article is inaccurate

give some details

or say nothing

[nickrl] 13/7/2022 09:08

TOWN maybe in for a windfall from its stake in "Your Parking Space" to the tune of £20m although not sure what its got in the books for it.

[aringadingding] 18/3/2022 11:59

nickrl, Well there is the management cost base but also the value management add by development opportunities. I guess the idea is they balance each other out and so the NAV/shre is a valid data point.

If they sold all their assets, paid the debt, and gave the cash to shareholders, the shareholders would get the NAV/shre. That's obvious but I find it an important point. With family owned companies you kind of never know when they might sell out to a fund or similar, which would be pretty much the same thing.

You might have a point re. dividends resuming, I was just observing the prior interim div levels really.

If they sell assets, take the cash and buy shares that are well below NAV/shre, then that is effectively a double whammy effect of a) theoretically moving share price towards NAV/shre simply by selling assets (as above) and b) increasing the intrinsic NAV/shre by reducing #shres more than NAV is reduced.

I expect you realise all of that but anyway... Seems very cheap to me.