Workspace Share Discussion Threads

[brando69] 10/7/2011 15:17

surely as long as you held on 5 July it doesn't matter if you sell subsequently. doesn't going ex rights on 12th just mean that is when the new shares are admitted for trading?

but holders on the 5th july have until 26th to take up their allocation or let the underwriter take them?

[purplebox] 08/7/2011 23:00

Stockadoodle - 8 Jul'11 - 16:12 - 7494 of 7495

Stocka! - I thought you were dead ;-).

[melody9999] 08/7/2011 22:33

Catchee 7491 - I spoke to my broker today about the rights issue.

You had to hold shares on 5th July to be eligible for the rights issue. So if you bought on the 6th you would not receive the rights entitlement.

But the shares do not go ex-rights until 12th July.

Rather like a share going ex-dividend, you have to hold them on the ex date to be eligible. So you need to hold shares until the 12th to be eligible for the rights issue.

I did not understand this until today, and sold some of my holding yesterday. My understanding is that, although I held these at the record date, because I will not be holding them at the ex date I will not get the rights entitlement. and I cannot 'buy them back' with the rights entitlement because we are past the record date........ You live and learn I guess.

If anyone has a different understanding (and have checked with an IFA or broker) I would be interested to know.

[stockadoodle] 08/7/2011 16:12

News published in IC for those interested

Workspace raises cash

Created: 8 July 2011
Written by: Stephen Wilmot

Workspace has announced a one-for-four rights issue at 23p a share to raise £63m. The London small-business landlord plans to use £50m of the cash on a programme of property improvements that will increase its rent roll by £11m, according to chief executive Harry Platt. Some properties will gain extra floors; others will be extended onto vacant land; one Southwark office will be refurbished with a shiny new atrium. In total, 12 buildings will benefit.

The remaining £13m will be spent on acquisitions for the company's joint venture with fund management giant BlackRock. Mr Platt thinks it's a good time to buy in Workspace's niche – period industrial buildings in the inner suburbs – and has his eye on £200m worth of property. "There are huge opportunities at the moment," he enthuses.

The risk is that Workspace will not manage to fill the extra space. At 86.4 per cent, like-for-like occupancy was flat over the second quarter, compared to the previous three months. But that was an improvement on the previous year's figure, and the rent roll crept 1 per cent higher as the group managed to extract slightly higher rents from its tenants.

Workspace's tenants are a diverse and resilient bunch. But times are tough for Britain's small-business community, and the recovery in occupancy seems to have stalled. Moreover, the shares have performed well and the discount to net asset value we spotted a year ago has closed. The group's improvement plans are sensible, but at 28.75p, we are cautiously downgrading our advice on the shares to fairly priced.

[brando69] 08/7/2011 09:40

seems that those selling the shares to cover the cost of the rights, or selling because they expect share price to fall, are being offset by those buying into the story based on the IMS

[purplebox] 07/7/2011 19:42

brando69 - 7 Jul'11 - 18:11 - 7490 of 7491

you mean at 29, down .25p

Yes - fancy me getting than wrong - I must have been overcome by all the excitement!

CatcheeMonkee - 7 Jul'11 - 18:16 - 7491 of 7491

As the 'Record Date for entitlement under the Rights Issue' was 5th July, has the correction in price now taken place - i.e. holders as of 5th July will get the rights. If so .25p down considering the rights are worth around 1.5p per existing share = very good day today?

Yes - WKP gave up having bad days a few months ago :-).

[catcheemonkee] 07/7/2011 18:16

As the 'Record Date for entitlement under the Rights Issue' was 5th July, has the correction in price now taken place - i.e. holders as of 5th July will get the rights. If so .25p down considering the rights are worth around 1.5p per existing share = very good day today?

[brando69] 07/7/2011 18:11

you mean at 29, down .25p

[purplebox] 07/7/2011 17:54

Closed at 28.75p - down 0.25p :-).

The rest of the sector took a hammering today...

[red army] 07/7/2011 14:37

There are a number of companies buying properties outside of their "normal portfolio" ie British Land etc and this clearly tells me that they feel that the sector is on the up in terms of valuation.
I strongly feel that various asett classes have only one way to go in the interest of inflation which will in my opinion be the one major factor that makes all of the borrowing look cheap.
Over the next few years this will be the one major issue affecting us all and companies see this as a means of protecting their wealth.

[brando69] 07/7/2011 12:30

important to reward existing shareholders and not the speculative newcomers

[purplebox] 07/7/2011 12:24

This is very good news - HSTN (Hansteen) did a very similar RI back in April and raised new capital - and their share price only weakened very slighty and has since moved back to its pre RI levels.

The WKP management would not be doing this if the share price had not been so strong over the past few months. It's a nice discount and I can't imagine that the underwriters will be left with any :-).

Anyone care to speculate on how the money will be spent?

[brando69] 07/7/2011 11:57

they have a focused strategy

they are not just throwing money into a hole

that makes a big difference

[saltaire111] 07/7/2011 11:54

I've read through the announcement and I like what they're doing. They are right to invest now when there are some cut price deals to be done. Some of the bigger firms are reliant on mezzanine financing at extortionate rates and with this cash injection WKP will be in a very strong bargaining position. We all understand that in the property game, the money is made in the buying.

Salty

[catcheemonkee] 07/7/2011 11:47

I'll be taking up the offer in full. May look to top up with a few more as well.

[mreasygoing] 07/7/2011 11:21

The RI is sound for growth Brando. This can only benefit the business. I'd expect a little selling as some sell some of their shares to fund the RI. But in the long run I've found your better off keeping your holding and taking up the offer with fresh capital (if you have it available).

[brando69] 07/7/2011 09:27

i've seen this before

institutions buying big even tho they can't get the rights.

it's all about what the funds are being used for

here they are to expand and accelerate profitable activity

not to keep day to day operations afloat/tread water

[red army] 07/7/2011 09:14

2m shares traded in two lumps at 29p - it does not make sense if these are buys??

[red army] 07/7/2011 09:11

One thing is for sure I will be taking my full rights up.

[mreasygoing] 07/7/2011 08:53

I think a few will do what you have done red army. But I'm holding as I don't believe it will retrace to the offer price. The RI sounds a bargain !!

[brando69] 07/7/2011 08:51

so you can sell some ex-rights and use the cash to buy the rights issue?

[red army] 07/7/2011 08:50

Sold 50000 as record date has past therefore entitlement not altered.
taking a chance that these will be cheaper and taking a profit.

[purpleipad] 07/7/2011 07:20

Rights issue - 1 for 4 @ 23.0p to raise £63 Million :-)).

I'm off to sort out my cash.





Just shows how strong the stock is - my guess is that the share price will hold up very well.

PurpleBox

[brando69] 05/7/2011 08:19

having a go at 30.5 again.