Tritax Eurobox Share Discussion Threads

[hpcg] 04/6/2024 16:25

Thanks, CWA1, me too. Now imagine it isn't your money, it is other people's. Your direct incentive on the other hand is to grow AUM, and beyond that if you don't the cash on hand will be taken away and allocated to someone else.

There surely must be some incentive for the asset manager to pay the lowest amoun but I don't know what. I am 99% certain that any sensible deal, which included NAV, if more remunerative to the buyer than no deal at all. I doubt the offer will be at NAV, but it might be close, Even if it isn't investors couldn't wait to sell into the news so it would be likely accepted. I think Brookfield has a very good idea what to pitch to get it over the line. Probably also what it takes to trump any potential counter offer. There is even a non-zero chance an offer comes in above NAV IMO.

[cwa1] 04/6/2024 16:00

Hi hpcg

Quick reply

CWA1 - would you buy any of the individual properties at NAV?[probably not-but "it depends] Would you buy all of them at NAV?[Unlikely if I could avoid it, which I think a buyer could] Wouldn't it be cheaper for a large landlord to buy the company at NAV than the properties at NAV?[Possibly] What if individually the properties are changing hands for a small premium?[Not sure-but I'd be unlikely to be buying them!] What if you had funds waiting to be deployed?[If I had funds waiting to be deployed I'd be wanting to get the assets as cheaply as possible I suppose?] What if your cost of debt was lower?[That would be great-but I wouldn't be giving that advantage away to someone else by buying at NAV or higher unless I absolutely had to] What if you could take out cost immediately?[Again, I'd want to keep that to myself and don't think I'd be doing that if I paid NAV or more]

[spectoacc] 04/6/2024 15:56

I wouldn't pay NAV for the properties, any more than I'd pay NAV for EBOX.

[makinbuks] 04/6/2024 15:43

Absolutely right. Properties are in short supply and these are all top quality. If they weren't being offered NAV the board could hold on, pay dividends for two years and dispose of the properties individually to realise more for shareholders even allowing for the time value of money.

On MyRetirementFund's point, I agree the market reaction today either signals that they don't see a bid materialising or that it will be low ball

[hpcg] 04/6/2024 14:15

CWA1 - would you buy any of the individual properties at NAV? Would you buy all of them at NAV? Wouldn't it be cheaper for a large landlord to buy the company at NAV than the properties at NAV? What if individually the properties are changing hands for a small premium? What if you had funds waiting to be deployed? What if your cost of debt was lower? What if you could take out cost immediately?

[essentialinvestor] 04/6/2024 13:03

I've bought a few, looks relatively low risk/reward.

Sector is pregnant with nice possibilities atm - barring something leftfield hitting

[my retirement fund] 04/6/2024 12:52

Thought this may be 65p today minimum

[cwa1] 04/6/2024 12:52

Possibly just me-but if I were the buyer there's no way I'd be offering NAV!

[williamcooper104] 04/6/2024 12:26

In two years time you can pay 1.5% and 15% over 5 carry to invest in a Brookfield entity That's what this is about longer term

[williamcooper104] 04/6/2024 12:24

Yep - shouldn't go for a cent less than NAV But time value of money means the board could (wrongly IMO) justify a small discount to NAV - (problem with time value of money is we have the divi as compensation for that) Anything like a 10% discount and it's sue the valuer time if we can't sell assets at anything more than the 10% discounted price

[morph7] 04/6/2024 12:24

Completely agree Makinbuks. In a few years "if" we are around 2.5%-2.75% interest rates I don't think 110p is a big ask. And there is nothing better than collecting a very healthy dividend in the interim. I was heavy in STOR when that was taken private in the U.S. Not much premium given, and was Royally shafted.

[skinny] 04/6/2024 12:21

That's basically my sentiment here.

[makinbuks] 04/6/2024 12:03

Frankly this is somewhat irritating. I would like to collect the dividends for many years, even if slightly reduced at refi and enjoy the re-rating that will come from this next wave in the interest rate cycle. There is every chance this will be 90p or £1 in two years time, why would I want to sell to Brookfield even at 82p. Its going to be very interesting to see how the directors perform in this matter

[stemis] 04/6/2024 11:54

Surely board can't recommend an offer at a discount to NAV of more than 5%, which would be mid 70's?

[williamcooper104] 04/6/2024 11:30

They've appointed Citi as a financial adviser So pretty clear they're fairly well advanced

[hpcg] 04/6/2024 11:21

I've put on spread bets during the decline this morning, having been out. For whatever news outlet that got hold of the info it means Brookfield are well past the considering it stage. Equally there is no chance of the management neglecting to pass an offer on. With any larger group going to be able to take corporate costs out I think we get a firm offer. That will either get accepted or the price will firm.

[williamcooper104] 04/6/2024 10:11

Yep SGRO can pay NAV, cut costs and with the multiple they raised their money on it will be very EPRA EPS accretive

[flyer61] 04/6/2024 09:20

Yes it s almost as if Brookfield have gone early so their elbows are out and you are to late Segro......time will tell!

[skyship] 04/6/2024 08:55

Raj - yes, added a few ASLI this morning at c62.7p. The likely 15%-18%pa return just too attractive to ignore.

[raj k] 04/6/2024 08:16

Anyone adding to ASLI given that this interest in EBOX has happened. If EBOX gets taken out and ASI in wind down whats left in the euorpean logistics arena.

[royaloak] 04/6/2024 08:16

Online only 1500 available through RSP, no problem dealing with DMA.

[hbuilder] 04/6/2024 08:16

Thank you Lord Knome I will try to call them in case that works.

[lord gnome] 04/6/2024 08:12

Probably the same problem I encountered trying to buy with ii. It's all to do with KIDs. With ii it was necessary to buy over the phone. If you try BOXE, the Euro version, you may have better luck buying but then you have Euro hassle and FX costs.

[hbuilder] 04/6/2024 08:08

Is anyone able to give me a clue why I can’t buy this on IWeb through an ISA?

I’ve been watching this the last few months but have decided to get in now and can’t!

Thank you