Town Centre Securities Share Discussion Threads

[inki] 29/12/2020 14:01

To take it private they would probably have to find £75M to £100M - and that would be taking it at a steal. Someone lending would be taking on the gearing effectively, into consideration as well.

[castleford tiger] 29/12/2020 13:54

be difficult shafting long term holders at these silly valuations

[spob] 29/12/2020 13:43

Would the ziffs consider taking this private ?

[inki] 29/12/2020 13:18

Castleford - quite so - Banks have bigger issues than with TCS - Gearing is one issue, yet the Asset Value to share price is still relevant.
There is a diversification factor here which should help the company survive.
It will prosper if the country does.

[castleford tiger] 29/12/2020 12:27

A sale of any part of the group more than sorts out the LTV

Banks understand property issues and are more relaxed.

There is potential 100% gain here this year and by spring it will be too late to buy

tiger

[nickrl] 29/12/2020 12:09

hybrasil my sentiments exactly but market is doing usual Xmas to New Year leap aided by Brexit and Oxford Vaccine as well and im tempted with a spread bet but timing it is key as its cost money to keep them open.

[castleford tiger] 29/12/2020 12:04

no chance of this failing.

I bought 90k at under 100p and all in the drawer

tiger

[hybrasil] 29/12/2020 11:53

Its simply too highly geared for me.

Look at their last report. They state there is december 2020 covenant and that there is a risk they may breach it.

Remember Warner estates. They had lasted generations. This could go the same way

[playful] 29/12/2020 09:17

Nice to see a jump here

[its the oxman] 25/12/2020 13:01

Is this a buy now at 100p with Brexit done and things perking up possibly?

[speedsgh] 22/10/2020 14:06

COVID-19 Update -

...Edward Ziff, Chairman and Chief Executive commented:

"We continue to see a consistent and reassuring level of rent collection. To have maintained collection and deferred payment levels at 87% to date reflects the quality, uniqueness and diversified nature of our portfolio and the collaborative and strong relationships we have built in partnership with our tenants over many years.

"I am also pleased with the significant and swift progress made on our disposal programme. £41.2m of sales since our June year end has allowed us to significantly reduce debt, lower the proportion of retail and leisure assets in our portfolio, increase financial headroom, and create greater flexibility for the future as we reset and reinvigorate the business."

[speedsgh] 12/10/2020 14:08

PurplePelmets - I know it is somewhat out-of-date now that the 2020 Final Results have been released (we are still awaiting release of the 2020 Annual Report) but according to the 2019 Annual Report, the Ziff family owns 52% of the company's shares. AFAIAA it has been at this level for a while and hasn't changed materially since release of the 2019 Annual Report.



Again out-of-date but this analysis of TOWN by Maynard Paton (published March 2018) is well worth a read for background info if you haven't already seen it.

[purplepelmets] 12/10/2020 02:54

Stocko shows the combined Ziffs own about 20%. No comparison with the likes of Daejan where the Rainwaters owned 80 odd% and took it private. Unless Stockos figures are wrong?

[nickrl] 24/9/2020 10:28

The debenture is locked in til 2031 costing c5.5m/pa so the recent sales are only reducing the lower interest loans by c0.9m pa at the cost of loss of 1.8m pa rent so not sure of the sense of that especially as peter27 notes these tenants are reliable and in a reasonable stable part of retail. My guess is they know they are bumping up against LTVs and may have difficulty refinancing so are dealing with it with retail assets that can be shifted.

There reduction in property values is comparable to others yet are valued at around 30% of NAV and as tiger says that does seem low and certainly at the bottom end of the sector. However, they are being delirious on there reversionary ERV imv so in terms of supporting a reasonable dividend don't see that happening and be luck to sustain it at 50% of current payment.

However, with Ziffs grouping owning so much seems to me a full takeout has to be possibility here.

[spectoacc] 22/9/2020 07:09

47.9% LTV, was c.53% before the disposals, and can only see it rising again with impending new lockdowns.

[castleford tiger] 21/9/2020 14:32

How can the market value this at 47m
Even allowing for all the current issues and debt being 4 times market cap is one this is silly.
I don’t like to see any sale but what’s the borrowing cost as a % 3% or higher?
The net return here was 5% so with little capital growth maybe it fits.
Don’t the Ziffs own 80%

Tiger

[castleford tiger] 21/9/2020 14:22

Market don’t like it.
The family may try to take this private?

Banks are not happy with property at the moment.

[spectoacc] 21/9/2020 09:59

Not looked in detail in a while, but recall TOWN's LTV at higher end. Then there's the development side, the car parks, offices, retail, some resi flats, all city centre-focussed.

Not good in current environment.

[peter27] 21/9/2020 09:48

I don't think this is good news. These are strong long term covenants which will always sell easily so I suspect they have been put under pressure to reduce debt and this is the easy way. I'd be more impressed if they sold weaker investments at book.

[spectoacc] 21/9/2020 07:28

Some interesting sales, all at or near to book value, which is a plus. However, not sure the headline of selling some "retail" assets really accounts for the fact that the lion's share of the sales was of Waitrose/Aldi/Home Bargains, 3 very strong covenants. But all a positive for the LTV:



"Town Centre Securities PLC, the regional property investor and car park operator, today announces that it has sold four retail properties in Scotland and London for a total sum of £35.2m.

The units sold comprise of two Waitrose stores in Milngavie and Glasgow; an Aldi/Home Bargains store in Milngavie; and a high street retail store in Chiswick, London. The details of the sales are as follows:

Two Waitrose Stores:

· Sold as a single lot to Wire Oast Ltd on a freehold basis for £23.2m. Unconditional contracts have been exchanged with a completion date agreed of 8 October 2020

· The stores are located in Milngavie and Glasgow and total 70,000 square feet

· As at 30 June 2020, the combined assets were valued at £23.2 million on a freehold basis and generated annual net rent of £1.23 million

Aldi/Home Bargains Store:

· Sold to Magell Ltd on a freehold basis for £10.66m

· The store is located in Milngavie, Scotland, totals 36,500 square feet and is let to Aldi and Home Bargains

· Contracts have been exchanged and will complete follow the completion of the sale of the two Waitrose stores

· As at 30 June 2020, the property was valued at £10.825 million on a freehold basis and generated annual net rent of £0.5 million

Retail property, Chiswick

· The sale of this London property took place through an auction process in August. Let to a local florist on the ground floor with residential upper floors, the property sold for £1.4m

· As at 30 June 2020 the property was valued at £1.13 million on a freehold basis and generated annual net rent of £0.1 million

The proceeds of all sales will initially be used to reduce bank debt and thereby improve LTV.

Edward Ziff, Chairman and Chief Executive of TCS, said:

"These disposals represent an acceleration of our strategy to reposition TCS's portfolio; reducing our retail exposure, and enabling a significant reduction in bank debt.

"We have successfully navigated an extremely difficult period as a result of the COVID-19 disruption, and have continued to receive high levels of rent receipts. That said it has become increasingly clear that we need to reset and reinvigorate the business. These disposals represent the beginning of that process.

"Reducing indebtedness and increasing headroom for growth ensures TCS is better placed to move forward beyond the current period of uncertainty."
"

[speedsgh] 16/9/2020 15:28

Government extends commercial evictions ban until the end of 2020 -

The government has extended its moratorium on commercial tenant evictions until the end of 2020 in a move that will likely further deepen divisions between retailers and landlords.

In a statement this afternoon, the government said it had extended its ban on landlords evicting commercial tenants behind on their rent payments until at least the end of the year, in a bid to protect jobs.

The secretary of state for housing Robert Jenrick said extending the ban until the end of the year would give struggling high street retailers and restaurant chains a chance to “focus on rebuilding their business over the autumn and Christmas period”.

Jenrick, however, said that “where businesses can pay their rent, they should do so” as the measure was only designed to support those “struggling the most during the pandemic”.

[speedsgh] 25/8/2020 18:58

TOWN have recently completed the refurbishment of Carvers Warehouse, situated in Manchester's Piccadilly Basin, which has been positioned as an office hub...

[speedsgh] 25/8/2020 18:53

Property investor and car park operator, Town Centre Securities (TCS) has secured a new tenant at 75 Dale Street, in Manchester’s award-winning Piccadilly Basin.

Dental practice Allegra Dental, trading as Your Smile Clinic, has signed a deal on the whole building.

Your Smile Clinic will relocate its existing client base to the 1,300 sq ft self-contained, Grade II-listed building on a 15-year lease term and is due to open this October...

[castleford tiger] 07/8/2020 17:28

roger

might be cheap .
tiger

ps its not intu but administrators

[rogerlin] 07/8/2020 08:28

To raise funds to buy the Trafford Centre off Intu?