Urban Exposure Share Discussion Threads

[solarno lopez] 19/6/2020 13:45

The figure for legal costs is way above the norm

[cjohn] 19/6/2020 09:49

It's also a satisfactory resolution of the serious governance issues following the disgraceful loan, with the relevant offenders moved out swiftly.

And repayment of the loan guaranteed by the Sandhus putting UEX stock into escrow.


The negative note is that the company are going to cover the Sandhu's £134k legal costs with respect to their employment by the group and the loan issue.

[otemple3] 19/6/2020 09:01

It looks a low risk buy, worst case looks to be broadly breakeven. I invested in Watchstone on a similar basis and that has done well so may look to add here if the price drifts down

[hedge fund harry] 19/6/2020 08:52

What's not to like? The shares at 55p to buy are a gift and with tender offers every 3 months you may be able to exit your entire position by September.



The Company believes that an orderly wind-down of the Company has the potential to produce net returns for Shareholders in a range of 70p to 83p per ordinary share on a fully diluted basis. The Company estimates that 80% of proceeds should be returned to shareholders within 7 to 15 months.

The Company anticipates making distributions to its shareholders on a quarterly basis of the net proceeds of the loans, subject to its then-existing cash requirements. Depending on the circumstances at the time, these distributions will most likely take the form of own-share tender offers which are made to all of the company's shareholders. In addition, the Company intends to use its shareholder authority to make on-market own-share purchases at prices that are accretive to the Company's prevailing tangible net asset value per share

[otemple3] 19/6/2020 07:38

https://www.charltonillingworth.co.uk/rec-uex/"Valuation -Shareholders can expect a 17% – 37% return over 7-15 months on the basis of these assumptions. The original deal with Honeycomb was expected to provide 72p/share to shareholders, an extra 6p-16p/share.Conclusion  -Looks like a decent run off return for shareholders from the current price, and a sad end for the company"

[yieldsearch] 19/6/2020 07:21

Change in management, and liquidation

[solarno lopez] 17/6/2020 15:52

Thanks Yieldsearch as the price moves up today in a drab market

[yieldsearch] 17/6/2020 12:51

Solarno

The loans are short term and should be repaid or realised within 1-2 years max if there are no buyers for the whole portfolio. Clearly one has to factor in potential residential price reduction.
The company stated that they have stopped lending

and assuming that the management is not finding another way to f the shareholders ( it is a BIG assumption..), eventually the company will have an amount of cash that can be distributed to shareholder.

that a medium term scenario. upside would be that an activist is shaking the whole thing and clean it faster.

then looking at the share price vs nav, urban exposure has i believe the largest discount. RECI rallied with clear disclosure from management. PSSL likely liquidation. LBOW, HONY reduced discount.

any share price activity is news driven here.

[solarno lopez] 17/6/2020 07:15

all but forgotten

[solarno lopez] 12/6/2020 13:11

Positive rebound

[solarno lopez] 09/6/2020 07:14

Not necessarily as money talks !

[yieldsearch] 08/6/2020 11:27

Seems that some rns are not available through advfn.
recently Invesco reduced exposure and Oryx increased

by my calculation (please correct if wrong)
Tchenguyz have 12.6%
Wellesley have 13.2%
Metage Capital 5.8%


Invesco left with 9.8%. how long will it take to get this down to zero?

so you still need a few "sleepy" instit like invesco to sell down, to allow the activists to trigger changes.

[solarno lopez] 08/6/2020 11:12

sorry wrong thread

[solarno lopez] 08/6/2020 10:32

Hi Vat lets hope we get the offer

[vatacarma] 08/6/2020 10:18

Thank you Sol

The fundamentals appear to be good and with three large investors buying in I have also added to my holding

[solarno lopez] 08/6/2020 09:02

Well at least its up thrupence

[solarno lopez] 08/6/2020 08:16

A bit of a follow through but who can blame investors after being let down previously and suspect loans to directors as I keep adding

[solarno lopez] 08/6/2020 07:37

A bit of tickle today following the Mail on Sunday suggestion of a tender offer at 55/65p nice if we can get it and why not with three big names having hoovered up stock
in large quantities including the master of tender offers Chris Mills !

[solarno lopez] 12/5/2020 07:40

They wont repay sadly

[yieldsearch] 07/5/2020 20:11

hxxps://news.sky.com/story/urban-exposure-banker-is-trustee-of-charity-handed-16312m-loan-11984940

Also he is a director of the ue charity. how can jefferies head of compliance signed off this? advising a client, director of a company set up by the client and trustee of recipient of funds?

We just need people managing the loan portfiolio ie our nav. Senior management shud repay the charity loan and just leave.

[cjohn] 06/5/2020 12:16

"The lack of corporate governance and the disgraceful action by directors awarding themselves a loan is well highlighted in todays TIMES."

Let's hope it's a lesson they take to heart.

There's been clear value here post the falling through of the Honeycomb deal, but the corporate governance is going to make any potential shareholder pause. Only one independent director raised the alarm. What were the others doing? What was the Chairman doing?

"The sooner UEX sells its portfolio and self liquidates the better."

Hear, hear to that.

[stuffee] 06/5/2020 09:30

SL, I agree The Times has delivered a well deserved kick. I do hope there are no more unsavoury transactions between the 2% shareholders and the company, I fear where there's smoke there may be...

As others have mentioned our dear friend ST really knows how to pick them. I think he likes selecting small companies on very low ratings without researching the reason investors have failed to deliver a decent rating. I've suffered from some of his recommendations - the classic being Constellation Healthcare, which was bought in by management, at what appeared to be a discounted price, and subsequently proved to be a complete fraud. To really cheer up former shareholders, the Liquidator is now proceeding to recover all the bid proceeds from the former shareholders, which is possible under US legislation; I've ignored the various writs and demands.

The sooner UEX sells its portfolio and self liquidates the better.

[solarno lopez] 06/5/2020 08:38

The lack of corporate governance and the disgraceful action by directors awarding themselves a loan is well highlighted in todays TIMES

[yieldsearch] 05/5/2020 19:10

wind up opportunity: yes potential, but not as easy as a property company:

1) Ongoing operating cost are way too high. If the management can make a number of poor decisions, may be it is time to reduce their remuneration

2) the loans are development loans. anything and everything can happen in a normal situation, with developer going bust, contractors going bust, delay in construction, delay in delivery of material, delay or haircut in sales of finished products. how is the current situation impacting the loans? I guess some of the sites must have stopped due to the lockdown.

3) all the loans were done/priced before the virus. fair to say that all debt markets repriced, so any refinancing of these loans will be at a rate higher. dont expect many prepayment and probably wait more time to realise the loans.

4) all the loans were done in a relatively healthy economy, with booming resi market, local and international demand. All these people were keen to buy resi units. are they going to buy now? no they cannot even visit the properties. they may do in few weeks but i am not sure that the first thing people will want to do. are they going to pay the price that was anticipated before this virus? clearly not I wouldn't.. and they will have more difficulties getting a mortgage themselves.

[solarno lopez] 05/5/2020 14:58

The loan is personal enrichment !

How come, well you borrow cash from your company to give to a charity and then the hoi polloi fawn over you it gets your name in the paper.

Perhaps they thought they would be ennobled or similar ..it happens !