Ucp Share Discussion Threads

[rustle2] 17/2/2011 14:44

but increasing construction activity - where will the money come from for this?

[horndean eagle] 14/2/2011 14:00

Surprised by the lack of comment here this morning. Excellent leasing progress. Always thought Nectrus were being particularly sly about leasing progress. Momentum looks to be strong and a very rapid increase in NAV is on the cards imho.

[cgequityinvest] 10/1/2011 17:02

With Unitech having said they are not proposong to increase their offer I believe this allows them to fulfil their obligation for Nectrus to buy shares - it will be interesting to see if this begins sooner rather than later.

[horndean eagle] 05/1/2011 08:14

Reminder conference call starting at 11am this morning.

[vlain] 30/12/2010 20:55

slowly creeping up, good to seee...at least for the time being...

[vlain] 14/12/2010 22:39

delayed trade from 9th showing on LSE today.....interesting....

Is this the bottom for now.....even more interesting....

[backwoodsman] 10/12/2010 23:14

Thanks for the update CG.

[vlain] 09/12/2010 17:13

last 6 months work down the drain....pathethic....should have sold at 35.....

[cgequityinvest] 08/12/2010 14:31

I spoke to one of the directors at some length last week to get an update. As the company is in a close period he was not able to say anhthing they had not told the institutional investors. What I took away from the discussion was:

* the investigation of fair value undertaken following the bid took about two months and included talking to agents, looking at rentals achievable and confirmed that the offer from Unitech undervalued the business.
* the final proposals for tax changes are better than first proposed but have fundamentally changed the rules from when the company was first established.
* the company will provide an update on lettings in mid Dec. Overall letting levels have recovered but remain "softish".
* Nectrus are setting off the management fee they cahrge against a poor investment made by Nectrus on UCP's behalf - see notes 7 and 23 to recent annual accounts. I was worriewd that this would postpone the obligation for Nectrus to invest but the director confirmed this is not the case - Nectrus still have an obligation to buy shares but obviously cannot do so when they have price sensitive information (this would include a situation if they were considering another bid).
*So my take on this is that Nectrus still have the obligation and it will be interesting to see if they start buying shares once the interims are released. If they were considering another imminent bid then they would be prevented from buying.
*I asked about raising debt to build out the sites and was advised that debt can be raised against the existing rental stream at circa 5x rental income.
*The board/management are seeking to manage the existing space carefully to allow them to provide space against demand from new tenants but not to have loads of empty stock sitting around.
*Save from any revised bid from Unitech, any exit is likely to be some years away. Given Unitech's holding of 40% in the sites, it is difficult to sell to anybody else and any other exit is made more difficult due to restrictions on SEZ asset sales.

My take on all this is to sit tight for the moment pending release of the interims and a better understanding of recent letting activity. Taking a long term view the strength of the Indian economy leaves me sensing that the assets will be lettable and there is upside as refected in the fact that the directors have turned aside the 31p offer. I think there is a reasonable chance Unitech will want to tidy up the situation by wanting 100% of the business and will make an increased offer but who knows when this might happen. They may want to see how the INFRA business is greeted by the stock market before raising debt to make another offer.

[vlain] 07/12/2010 09:34

makes me thing that I should have sold a few weeks backs. Painful to see this slow decline back to 31.......but I don't know why I still want to hang on....

[vlain] 29/11/2010 09:58

if ever there was the need for Nectrus, it is now more then ever.....

[whibbled] 27/11/2010 18:14

WOT! Unitech/UCP Demerger ??

Any theories on paragraph 3 of this..........



"Unitech is demerging its infrastructure business and list it separately as Unitech Corporate Park (UCP). UCP will include general construction, SEZs/ IT parks, industrial parks, township management etc. Unitech will be the largest shareholder with 35% stake in UCP, 33.3% will be offered to investors and balance 31.7% will be with the promoters. The existing Unitech shareholders will receive one share of UCP for every share held by them. We believe the restructuring exercise would be positive on account of - 1) It would allow shareholder’s to choose between real estate and infrastructure businesses; 2) It would unlock value of the non-core businesses; 3) Infrastructure business could avail of financing on favorable terms"

[horndean eagle] 23/11/2010 21:24

Took them a while to figure it out. Unitech look like they are likely to be distracted elsewhere for the time being so not sure a bid will happen soon. Share buyback will have to restart soon though. By my calculations they will have to purchase circa £3.4m worth of shares or around 10m shares around current levels. Hopefully results in December will continue to show the very strong growth in lettings achieved in the last half year. The share price will take care of itself if they do.

[vlain] 23/11/2010 16:49

finally an RNS from UCP

offer rejected, well thats good....

[scburbs] 02/11/2010 08:13

Ishaan continuing to let out their space nicely (albeit only a small amount is SEZ).

"Since the results announcement on 30 June 2010, additional space of c.807,000 sq. ft. (including c.165,000 sq. ft. previously under option) has been let or terms agreed across the following projects in the portfolio:

· c.224,000 sq. ft. at Mindspace, Airoli, Navi Mumbai

· c.379,000 sq. ft. at Mindspace, Madhapur, Hyderabad SEZ and non-SEZ

· c.204,000 sq. ft. across Inorbit Malls at Hyderabad, Pune and Bangalore

Separately, an area of c.46,000 sq. ft. under offer at Mindspace Airoli, Navi Mumbai has been given up by a tenant.

As a result, the aggregate area let or terms agreed has increased to c.5.9 million sq. ft., representing c.71% of the lettable area currently under construction and c.31% of the aggregate lettable area of the portfolio."

[underperformer] 20/10/2010 15:50

super posting thanks. Would love to know what is going on behind scenes here. My guess is that Indian accting y/e in March will be a date to play this to.

[scburbs] 20/10/2010 12:47

Odd that the BoD at UCP should be reaching their most negative just as there are signs of the market turning. Less odd that Unitech would be interested in buying UCP at this point in time!

"The outlook, for 2010, is positive. The gradual economic recovery has meant that the demand for office space has increased in the second half of 2010, say experts. Across India, about 4.6 million sq ft of pre-commitments for space, due to be absorbed over 2010-2011, have been logged.

Industry experts add that Indian corporates had been cautious about their expansion plans, in 2009, because of the recession and also because of falling office space rentals. Most micro-markets across the country witnessed 15-25 per cent decline in rentals in 2009, as compared to 2008. However, in 2010, we are witnessing stabilisation and in some locations, even an upward movement. The last quarter (Q3) has seen rentals stabilising, except in a few locations where there is a perceived oversupply.

Though 2009 saw a drop in expected supply, major cities recorded 51.8 million sq ft of new office space supply and it is expected that the figures, in 2010, will be better. With corporates once again beginning to lease large spaces, this new supply is expected to be absorbed, by Q2, 2011. "Clients are starting to talk positive," says commercial real estate consultant, Prashant Puri. Industry experts see a revival of rentals across all markets in the second half of 2010.

"Corporates, too, are realising this. This is the right time to buy or lease property, as rentals and capital values are still at their lowest," maintains Puri. On the developer's side, the positive news is that stalled commercial and office projects are being restarted. "2009 was a tenant's market. In 2010, things have started to turn around. By all indications, by the end of 2010, commercial real estate should bounce back," concludes Puri."

[underperformer] 12/10/2010 15:58

agreed thanks for flagging it...new activists always welcome here.

[vlain] 11/10/2010 13:55

not exactly the RNS I was waiting for, but positive nonetheless.... :-)

[bones30] 07/10/2010 12:48

Don't watch my posts! I'm a total novice!

[underperformer] 06/10/2010 20:21

metaphorically.

[underperformer] 06/10/2010 20:20

Thx bones am learning to watch your postings. I will try and beat up a few indian brokers to see if there is anything on UT

[bones30] 06/10/2010 19:31

I got out when annoucement was made, but I'm starting to regret it. There may be a bit more mileage here.

Good luck!

[vlain] 06/10/2010 19:19

somehting is definately happening, no idea what it is yet!?!?