Seems to be quite frothy here.Would be very happy to see this push up closer to NAV of 31p per share which will be a very difficult barrier to cross 29p is probablyy the best we can hope for.Dont think the market will treat them the same as housebuilders. My only concern is which other sector do they cast their eyes over apart from foodstores and student accomodation.Offices still a sector to steer clear of and industrial unless pre-let difficult apart from refurbishing existing stock.
Suspect they will be looking at portfolio break-ups
Seems we have this site to ourselves.Still very happy to be in here.They have a number of foodstore applications in play planning wise which is either a£1m plus profits or SFA ,They cant be half pregnant Herne Bay and St Austell are you aware of any developments here
Property analysts at broker Oriel Securities predict that Terrace Hill will report an end-September 2013 net asset value of 31p a share when the company releases its full-year results at the start of December. On that basis, the shares are trading on a 26 per cent discount to book value. In my view, such a discount is wholly unjustified once you consider the potential for value creation in the remaining commercial property developments.
Shares in Aim-traded property developer and investor Terrace Hill (THG: 23p) have surged this year, but it is only realistic to expect further gains. That's because, following a site sale and forward funding agreement for the company's 1,104-unit student accommodation scheme in Southampton, and the disposal of the majority of its remaining residential assets, the company's balance sheet gearing has been slashed to 30 per cent. This mitigates financial risk, which was the major reason the shares had been previously shunned by investors.
Moreover, there is scope for further debt reductions as Terrace Hill has bought out a joint venture partner to take ownership of 47 residential assets worth £5.3m, all of which will be sold off on a piecemeal basis. The focus will be on commercial property developments and food stores in particular. Prospects here look well underpinned. The company has completed two pre-sold and pre-let Sainsbury's food store developments in the north-east of England and a 41,800 sq ft Asda supermarket in Skelton. Importantly, Terrace Hill's chief executive Philip Leech points out that his company is still experiencing good demand from retailers for the right type of store in the right location. The company has close relationships with several large retailers and the pipeline of development projects is "progressing well".
This has not been completely lost on investors, since Terrace Hill's shares are up 42 per cent since I advised buying in February at 15.4p. However, trading 25 per cent below Oriel Securities' end-September 2013 net asset value estimate of 31p, the share price discount to book value is still far too wide.
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