Uk Commercial Property R... Share Discussion Threads

[blackhorse23] 13/5/2024 17:58

UK Commercial Property REIT Limited (UK, B19Z2J5) will be deleted from the FTSE 250 Index. Greencore Group (UK, 0386410) will be added to the FTSE 250 Index and deleted from the FTSE SmallCap Index. Tritax Big Box REIT (UK, BG49KP9) will remain in the FTSE 250 Index. All changes are effective from 16 May 2024. Full details of index changes available on the FTSE Russell website.

[spectoacc] 20/4/2024 12:08

Interesting angle from The Times, basically pointing out that Phoenix gets a fee rebate from UKCM - and always have done - on their shareholding.

Since the merger is with another abrdn fund, Phoenix will likely continue to get that rebate, something not available to other shareholders.

[nickrl] 19/4/2024 16:33

AR reads reasonably well. I like the way Ocado Hatfield images appear several times but no mention on the lease though. Anyhow will be lost in the midst of BBOX portfolio soon although maybe they have a plan to redevelop it. Hyatt development reported on budget and schedule and expected to generate 4.8pa. Suspect BBOX will have already sourced a buyer for that.

[giltedge1] 29/3/2024 12:40

Great recovery last 4 months, 55p to 70p, could do with a few more like this!.

[nickrl] 25/3/2024 18:05

From citywire UKCM chairman to abstain from voting for merger with BBOX

hxxps://citywire.com/investment-trust-insider/news/we-could-have-got-a-better-deal-ukcm-chair-abstains-from-tritax-vote/a2439045

"Pereira Gray said a better offer could have been forthcoming had there been ‘a more open and comprehensive sales process’. Although the deal is supported by UKCM’s largest shareholders – Phoenix Wealth and Investec – Pereira Gray questioned whether it is ‘the highest price or the best value that could have been achieved’.

He doubled-down and stated that a liquidation would generate a higher net return to shareholders than the 71p per share being offered by Tritax, but acknowledged that ‘a merger with Tritax could deliver a higher net present value… over time assuming growth in the value of Tritax’s core investment portfolio and possible narrowing of the discount’"

Needs to have a word with his colleague at API to grow a backbone

[dr biotech] 02/3/2024 11:22

Amongst the myriad of form 8.3s yesterday was the sale of a decent sized Bristol office - at NAV. On a casual basis I've noticed a few sales recent by different REITs, all seem to be near or above NAVs. Maybe its the only ones they can shift, or perhaps its time the discount to NAV should be closing..

[sleepy] 13/2/2024 09:26

What if UKCM were to liquidate their portfolio and return proceeds to shareholders?

[purplepelmets] 13/2/2024 09:07

Total chancers. Aint no way quality outfit like us at bbox will be buying you out

[topvest] 12/2/2024 18:59

I thought it was odd that UKCM announced at 7am they were considering the bid with the RNS dated Friday. BBOX then came out with an RNS saying it was agreed. Peter Gray is dissenting as UKCM chair, but has been voted 4 to 1 against. UKCM still not put another RNS out, presumably because Peter doesn't want to put his name to it. Sounds like a bit of a boardroom bust-up and Peter Gray has thrown his toys out of the pram! Anyway, it's not a great deal, so you can see why he's not happy, particularly as he will be losing his job.

UKCM was a good size UK diversified REIT and lowly geared. It always struggled though because of the Phoenix controlling stake. On balance, I am just about positive for the merger. I think UKCM lost a bit of investor respect taking on debt at the wrong time and entering into the dubious Hyatt hotel development at the wrong time.

[mindthestash] 12/2/2024 17:00

Apart from MLI these proposals are mergers and only offer so called synergies/savings from a larger group. I've been in property for some years and bigger doesn't mean better management. Big boxes and small boxes have different tenants and different management styles are needed. If the UKCM price improves a little more I might be tempted to sell now and reinvest elsewhere.

[redsonning] 12/2/2024 15:34

No this is not a good deal for UKCM shareholders. BBOX are just taking the opportunity to effectively acquire the UKCM assets at much below NAV. And that in a market which is bumping along the bottom, and will fly as interest rates come down. Having acquired a substantial holding of UKCM I'm not in any hurry to have BBOX take that off me, or to become a shareholder in the enlarged group (which will basically be BBOX+). It is significant that the chairman is not convinced. If I had to be removed as a shareholder, then I would at least expect a true NAV price, not a convoluted attempt to convince me that this is fair value taking into account the market discounts. At the market discounts UKCM is a give away, whereas BBOX is not.

[skyship] 12/2/2024 14:57

ASLI/EBOX - nothing in that for either party.

I suspect the next one will be from Private Equity. CLI or EBOX would suit me just fine!

[sleepy] 12/2/2024 14:34

The next takeover - which fund manager(s) are most at risk of losing their management contracts due to their REIT(s) being taken over?

[skyship] 12/2/2024 14:19

So, who will be the next target; and from whom...

Problem seems to me that after BBOX, CREI & LMP, all other players are on large discounts. CREI were on a 14% discount when they made their merger on API - now shares have slumped and the discount widened out to 27%. BBOX likely to go the same way - these share mergers do no favours to their shareholders.

Many of the others are minnows, really too small to bother about. An exception has to be EBOX (c£700m net assets) - a very tempting target out on a 43% discount and with all assets prime, in prime locations and modern.

[llef] 12/2/2024 13:10

I had not realised that BBOX (3 billion GBP) were so much bigger than UKCM (900m GBP).

UKCM have 40% in offices+retail+other.
This segment will only comprise about 10% of the combined group, so not that much really in the grand scheme of things.

[topvest] 12/2/2024 12:28

Yes, its an interesting deal and a tad surprising. Benefits are probably around 1. Selling 40% of UKCMs non-logistics assets; 2. Use additional capital to buy more logistics assets; 3. Reduced costs and 4. For UKCM, eliminate the Phoenix blocking stake. It's a done deal on the UKCM side. I hold both, so am relatively relaxed.

It's a better deal for UKCM than BBOX though as the share prices indicate.

[nickrl] 12/2/2024 11:38

I wonder if PCTN had heard about discussions and thats why they took a punt to flush them out?

[spectoacc] 12/2/2024 09:00

Surprised BBOX only off 2.5%. Wondering if this is a scheme to get into the FTSE100 & attract tracker money. But why not buy something where there's genuine synergies, and much less execution risk.

BCPT is the other that's held up remarkably well, with a similar chart to UKCM.

[hindsight] 12/2/2024 08:58

If I was a UKCM shareholder I'd feel pretty good about becoming pure-play logistics.

Yes I do, but will probably sell and move on

[giltedge1] 12/2/2024 08:06

Good for UKCM shareholders, wondered why uplift last two weeks compared to other REITs, bit of insider trading.

[nickrl] 12/2/2024 07:47

Pheonix are supporting so a done deal surely

[spectoacc] 12/2/2024 07:36

Interesting that one board director is against it, and that they've been in discussions for ages.

But main interest is - why on earth does BBOX want UKCM? They solely talk about the logistics assets, so are they going to sell everything else? Offices, hotels, cinemas, retail? It's a lot to hit the market.

If I was a UKCM shareholder I'd feel pretty good about becoming pure-play logistics. If I was a BBOX shareholder I'd wonder what on earth they were doing.