Urban Exposure Share Discussion Threads

[cjohn] 04/1/2021 15:58

Thanks for the explanation! which is confirmed by the quantum of cash returned to me on the 31st by Hargreaves Lansdown, which in percentage terms was significantly less than at Eqi.

[pejaten] 01/1/2021 15:34

HL, EQI operate pooled account. They make one submission for all their clients, whereas traditional stockbrokers tend to have dedicated accounts so they apply for you in your name. If you got 98% it would mean that other investors EQ did not bother to apply

[cjohn] 30/12/2020 15:36

Hi Yieldsearch, as far as I'm concerned you are the board's expert on this share. And thank you for your previous postings, that have been very researched and conceptualised. I wouldn't have thought the allocation of tender shares would be according to the position at each stockbroker. Surely, everyone who tendered all their shares will receive the same percentage as myself? It seems like eqi have been particularly agile (on this occasion).

[solarno lopez] 30/12/2020 07:33

Sorry wrong question

[yieldsearch] 29/12/2020 19:20

98% of your shares, that is very good for you, well done, i guess it most likely mean that other shareholders using EQI didnt tender and therefore you benefited from their allocation?

[cjohn] 29/12/2020 18:14

I hold UEX shares with two popular brokers: EQI and Hargreaves Lansdown. I tendered all my shares in both accounts. At EQI, I received cash on 23rd December for almost 98% of my shares, leaving me with a rump of around 2.3% of my original holding, a few hundred pounds, which I'll probably run till the next tender. At H and L, no cash return yet.

[papy02] 02/12/2020 11:09

Thank you Yieldsearch for your analysis. Does the recent RNS/Circular change anyone’s opinion on whether /how much to tender? I was leaning towards tendering 100%. But my antennae are twitching after the RNS/Circular: - Directors are not tendering any of their shares . (I’m finding it difficult to find what their holdings are – does anyone have this info that they can share?) - No statement on what major shareholders intend to do - No updated NAV (since June 30th) or indication how things are going. I’m never sure in these situations – does the stated NAV take account of expected income/expenses through to liquidation? Does anyone have an estimate of the adjustment to be made from June 30th for (income – expenses)? I see the Soros fund doubled their position to 12+% on Monday. Not clear who sold to them. Are they here to scalp a few %, or do they believe the NAV is understated? I’d be very interested in others’ current views on what % to tender.

[solarno lopez] 25/11/2020 08:05

Thanks Yield Search and your second paragraph was uppermost in my mind when I posted. So for clarity and transparency I will tender all I have

[papy02] 25/11/2020 08:03

I’m not sure how much, but some of the 75 - 77p will be consumed in the cost of running the tender.

[yieldsearch] 25/11/2020 07:53

I would tender as much as possible (100% of holding), selling at 75p is likely a decent price for anyone. and potentially due to some investors not tendering, selling more that your prorata share. By not tendering, you are swapping certainty of cash andtiming vs increase in payout but uncertainty in timing/realisation of the tail of the assets. So selling now at 75p vs selling (potentially/subject to write down) at 79.4p at some stage in the future. 4.4p difference. 72% of the NAV still has to be realised (with potential increase or decrease in that unrealised nav).

[solarno lopez] 25/11/2020 07:35

Thanks Yield Search your post makes it clearer especially the residual position.] Question, does one tender know or wait for the final payout ?

[jbarcroftr] 18/11/2020 11:18

We should be having an announcement soon .Within two months in Oct 1 news

[cjohn] 26/10/2020 14:27

In spite of the bulk of the then board nodding through this dreadful interest-free loan to the Sandhu family charity, one non-exec took decisive action and flagged up this transaction to the NOMAD. So on this occasion a grotesque corporate governance failure was thwarted. I remain a holder here.

[carcosa] 22/10/2020 05:42

This was an epic governance fail in which Randeesh Sandhu ex CEO along with his wife, Daljit Sandhu ex CEO and others left the company after a review by non-executive directors into the company’s governance arrangements, relating to that loan.

[yieldsearch] 21/10/2020 16:23

"The Company announces that the interest-free unsecured loan of £907,000 between Urban Exposure Philanthropy Limited and Urban Exposure Amco Limited has been fully repaid, and that the security given by Randeesh Sandhu and Daljit Sandhu for the repayment of the loan has been released." interest free loan....

[solarno lopez] 12/10/2020 07:11

Thanks Yieldsearch quality information as usual

[papy02] 10/10/2020 17:46

Thank you Yielsearch. A lot for thought there. Btw I see that Wellelsey are in the process of a CVA. So likely to tender even if less than NAV. (Unless they have been selling to Weiss, but I don’t recall any holdings RNS on that)

[yieldsearch] 10/10/2020 17:02

Hi Papy02 tks for your comment, it is a hard choice, selling now or waiting for tender and further clarification on full realisation. Sell: if you sell at 68.4, you are leaving between 3.6 and 9.6 ( of 5.3% to 14% upside). You clearly have no risk left. Keep: if they do a tender, weiss already own 20pc so they will tender those (Assuming tender at NAV). Others institutional investors will/should likely do the same. You may have some upside from other retail investors not participating in the tender but hard to assess. Some loans repaid or refinanced (as above), which created a good initial cash amount, and i guess thats what create the recent price appreciation. I have no visibility on the other loans, i guess if those are not refinanced by third parties like the luton loan, either it is due to credit reasons (i hope not, otherwise they would have disclosed it? and reduced the realisation value of 72-78p accordingly??) or they can't be refinanced due to their nature (exactly what, I dont know, may be priced pre covid, now loan pricing went up). then clearly while the assets are loans and therefore have some level of protection, who knows what will happen with covid, residential markets, general economy and brexit in the short and medium term. So really either crystallising your gain and leaving a return of 5 to 14%, or keep it for the full realisation and be exposed to timing and potential reduction in realisation price.( the 78pc i dont think can be increased.. capped by the return on each loans) On my side, I had a target return and it is basically achieved. so really depends on your entry point, your target and the level of risk you want to take. tought choice!

[papy02] 10/10/2020 11:50

Thanks, Yieldsearch for sharing your research. Are you minded to sell now, or hang on for the tender? Do you have a view on likely outcome in terms of where in the 72-78p range (or above?) it may end up, and timescale. The initial distribution is more than first estimated. I’m wondering, as this is now being run by the accountants, if they will continue to underpromise/overdeliver, or on the contrary, whether they are trading speed for amount of recoveries. As you say, they give minimal visibility. But I’d be interested in any view or comments. The other factor of course will be how they structure the initial tender - whether they will offer whatever they estimate the eventual NAV return to shareholders will be per share, or offer clearly less (the current share price gives them little wiggle room for that if they think the eventual return will be iro 72p). Also whether they will allow tendering of amounts in excess of your entitlement, subject to their overall £m target. What Weiss tenders may be the best litmus test, if that gets disclosed in the tender Circular. Many thanks again.

[yieldsearch] 10/10/2020 10:31

market is at 68.4/ 69.50, with range of outcome 72-78p large amount to be released within 2 months, clearly positive but not much visibility for the tail. doing some research, the luton loan was refinanced by Cheyne Capital: hxxps://urbanexposureplc.com/urban-exposure-finances-83-3m-lu2on-development-for-strawberry-star-in-luton/ hxxps://www.propertyfundsworld.com/2020/09/18/289807/strawberry-star-secures-gbp75m-funding-cheyne-capital-luton-development Will be interesting to see if others loans will be refinanced by them. Weiss stake increasing, now close to 19%. Invesco out. All in all, seems fully priced to me

[yieldsearch] 05/10/2020 11:37

Weiss AM ownership jump for 5.92% to 17.5%. Large part through financial instrument, on the 1st Oct, date of the company update Weiss is a value investor so good sign to have them on board

[solarno lopez] 01/10/2020 08:55

Thank you Yieldsearch

[yieldsearch] 01/10/2020 08:41

27p per shares, or 41% of the current share price (66p)

[solarno lopez] 01/10/2020 08:27

how much is that per share ?

[yieldsearch] 01/10/2020 08:26

43m to be distributed in the next 2 months. ++