Warehouse Reit Share Discussion Threads

[spectoacc] 05/9/2018 16:30

Am fine if it falls through - would prefer that to a fund-raising at below NAV. But annoying it's all taking so long.

[skyship] 05/9/2018 15:56

A long time to have heard nothing - doesn't bode well IMO.

[spectoacc] 04/9/2018 09:02

Still nothing, tho goes 1.5p XD on Thurs! Thought they might have got the fundraising sorted/announced prior to XD.

[igoe104] 22/8/2018 13:36

UK warehouse demand set to exceed supply by 2020

[topvest] 22/8/2018 13:31

More likely to be peak holiday season...not much is happening at the moment!

[spectoacc] 22/8/2018 12:56

Institutions dragging their heels over fundraising I wonder? Would rather it didn't go through than happened at a discount to NAV.

[makinbuks] 22/8/2018 12:50

Disappointing to have heard nothing in a month

[nimbo1] 15/8/2018 08:33

The key here is simon hope at savills who has worked with hasten for a long time. Also if you do some digging he is on the board of WHR, has a load of stock in it and part owns the management company which takes a fee for managing the properties. (read structure / company report)... He'll be the one driving this forward - for the benefit of us WHR shareholders of course, not the savills deal fee / the benefit of his management company fees etc. Of course he has stock so should be incentivised to drive a v good deal.

[maiken] 13/8/2018 09:05

I share your concerns but am perhaps a little more optimistic.I suspect Hansteen mgmt are happy to do this deal at a reasonable price.Their business model in the past has been concluded by selling up and riding off into the sunset.They've done this a couple of times before and they are now in their mid/late 60s.For them this is an opportunity to liquidate a decent chunk of the portfolio in timely fashion maybe.
I hope this could be that rare thing...a deal that's beneficial to both parties.Hansteen get the retirement cash and WHR get decent assets at a decent price which may persuade institutions to back them at close to NAV.

[spectoacc] 31/7/2018 15:40

@Skyship - I don't disagree, and would probably prefer the first outcome to the second.

However, I don't (yet) tar WHR with the same brush as PCA. This was said on 17th July:

"Andrew Bird, Managing Director of Tilstone Partners Ltd, the manager of Warehouse REIT, commented: "It has been a busy period for our growing asset management team, with this portfolio wide activity demonstrating both the continued demand from a range of new and existing occupiers for our well-located, good quality urban warehouses, alongside our ability to identify and deliver on the significant reversionary potential outlined at our recent maiden financial results. In particular, the significant letting to DFS for additional warehouse space to support its fast growing e-commerce operations is a trend that we are seeing replicated by retailers across the UK."


They operate in that highly popular "sheds/last mile" niche, where little is being built & rents are rising fast, divi target has been brought forward, and NAV gone above issue price in spite of purchase costs.

They may make a case for a discounted placing based on the 7%+ yield of what they're buying from Hansteen, but more than a penny or two and I'll be thinking about selling - ideally needs to be £1 or higher.

Potentially, this deal is transformational in terms of cost base/institutional radar, but if they can't sell it to the placees then they can't sell it to me.

[skyship] 31/7/2018 15:05

Specto - obviously wish you well with this; however as a non-holder I would view this negatively for WHR:

# most likely outcome is no deal as brokers fail to underwrite the equity issue at a "reasonable" discount

# or, they are successful at doing so, though at a level in the range of 96p-98p. Ie, a pre-emption deal which screws existing holders.

Smacks of a Palace Capital (PCA) deal driven by director egos, future remunerations and advisor fees!

GLA - & I do hope I'm wrong...

[spectoacc] 31/7/2018 10:29

It's a fair point, but the IMPT portfolio was something of a steal, & even this latest (very large) slug is "yielding over 7%", in what seems to be a hot sector (last mile warehouses).

I'd want to see more detail - particularly what price WHR raise money.

[roulettewheel] 31/7/2018 10:26

So last time they paid £116 million for something Hansteen paid £88.8 a year or so earlier.
hxxp://citywire.co.uk/investment-trust-insider/news/warehouse-reit-in-talks-to-buy-hansteen-s-industrial-assets/a1142163

Now they are paying £460 million for more assets, no doubt paying the "offer" price.

Hansteen currently trades at about 80% of Net Assets. This is a company that is very good at buying assets "cheap" and then selling those assets "expensive".

Not sure why WHT who are new to this should trade at any less a discount.

BTW I closed my position last month as I realised I just did not know what this company was doing. Hope for anyone still in WHT trades where it was, but if it does trade at a discount I plan to get involved again

[makinbuks] 27/7/2018 15:45

No I'm hazy on the detail, just looked like a good idea at IPO. Hoping this will be positive

[spectoacc] 27/7/2018 14:23

I think it's simply to do with size - they're buying something larger than they themselves are. Presumably HSTN selling them more of the old IMPT stuff, but haven't followed that saga closely enough to know what.

[makinbuks] 27/7/2018 12:47

If the proposed deal can be considered a reverse takeover doesn't that mean Hansteen will be taking shares? If Warehouse fundraise and buy for cash how does that constitute a reverse takeover?

[spectoacc] 27/7/2018 11:51

My experience of these things is - no. They'll raise institutionally & we just have to hope it's near last reported NAV of 102.1p.

[igoe104] 27/7/2018 11:18

The deal should double the portfolio, I wonder if they will do as fund raise all round with at discount to holders.

[spectoacc] 26/7/2018 14:54

Wow - going to be a big deal if it comes off. Wonder if they'll raise at NAV or higher, or dilute us? Had been quite happy as we were, investing ahead of schedule, divi up ahead of schedule. Need to see the details. More former IMPT assets I wonder?

[hjs] 26/7/2018 13:57

Shares suspended, pending an acquisition announcement.

[cheshire man] 14/6/2018 12:00

Indeed igoe104 it ticks all the boxes for me :-)

[igoe104] 14/6/2018 11:18

Good to see you here Cheshire Man, This is a great sector to be involved in with online spending rising and rising and the need for next day delivery. also the divi not bad either?

[cheshire man] 14/6/2018 09:28

Recently joined you here so now hold this and BBOX hoping this will be just as good to me :-)

[igoe104] 12/6/2018 07:44

topped up yesterday, very excited about this companies prospects.

[saltraider] 05/6/2018 01:16

igoe104 ... thank you for posting the link to that article.