Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Also, I believe, uncertainty over Brexit makes all investors to sit and wait on sidelines. Nobody wants to commit large sums to the U.K. at this time. As a result, there are no shopping centers buyers, poor sentiment and ..... property valuations go down by a lot.
Brexit created a heaven for short sellers and hedge funds. Sooner the Brexit uncertainty gone, the better it is.
On pound valuation and trade conditions. If there is a deal the pound would rise and that would help retailers to reduce costs, especially import costs in GBP terms. Intu would also benefit.
If there is no deal, ..... well .... not sure:)
Brexit (even without a deal) should give some certainty to the market.
certainty of what exactly ?
Thanks for the advice. Unfortunately, I am invested at about 85p average price. I would wait and see.
Sale of Spanish centers and Brexit (even without a deal) should give some certainty to the market.
Also, hopefully, the valuations will not ho down much further.
Thanks for good discussion
Bella if you are not invested here then run for the hills. If you are invested here just wait for this to rise when they sell their Spanish assets and then run for the hills.
Intu must sell Spanish portfolio to lower the debt. Otherwise, we may reach some debt covenants.
The Spanish shopping centers are holding values very well now. Google search of Spanish news gives references to the sale process currently under way for Asturias and Puerto Venecia. These two are valued for about 425m Euros.
You are right, all Spanish centers are very good but intu are desperate for solid ash now
" Plus the market seems to totally discount the planned sale of the Spanish interests "
Do you not think that the market believes the sale will result in a loss on the books against the cost and investment made into them? ...I mean they havent exactly held them for very long to really appreciate I wouldnt have thought. Xanadú was only signed in 2017 for goodness sake.
Selling out and leaving Spain is a disaster IMO
" Xanadú is the major shopping and leisure destination in its core catchment of 1.2 million people that covers some of the wealthiest areas of the city. Average disposable income is 18 per cent above the Spanish average and the unemployment rate is 8 per cent below the national average. The centre is located within one of the fastest growing and densely populated areas of the city "
The very bearish FT article that zcc refers to is, i presume, the piece of unadulterated "knocking copy" penned by Neil Collins. As for the refinancing required in 12 months this is sheer supposition. No debt instruments fall due for repayment or renegotiation until first half of Calendar 2019. These i think total some £950m although only some one-half of this relates to bonds with the balance being the revolving credit facility. Any refinancing before this would be due only if a further catastrophic fall in property values occurred. A further 15% from 30 June 2019 values would be manageable & would represent a 33% peak to trough movement. Plus the market seems to totally discount the planned sale of the Spanish interests. Remember that the NAV per share on the lower of the two methodologies at end June was £2.10 leaving today's close at close to an 85% discount. Now i realise that any further falls in values have a disproportionate %age fall in NAV as the debt remains constant. Even so this is an Armageddon pricing. And let us not forget that John Whittaker [Peel Holdings] sits there with 29.99%. He nearly tilted for the company around last October and the market expected a bid of north of £2.00. So, in my opinion "Nil desperandum". Quite possibly if you bought now & went to sleep for a couple of weeks then you may be pleasantly surprised on waking up.