George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. 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.
Lazada Factor in about 3-4% sale costs , redemption penalties and loan covenant breaches that £1.7bn is trimmed
However we have been advised that they aren't going that route so any investor arriving on the scene will want the majority of that wafer for themselves to which you refer.Herein lies the rub
I think Sain just made an excellent investment case for Intu didn't he?
If the best they can achieve is BV -20% then very roughly that would give them net assets of 8bn - 20% or 6.4bn and net external debt of 4.7bn which would leave roughly 1.7bn of equity or a share price 9 times higher than it is today.
These assets are definitely not prime retail parks, the other element of it is there is relatively little land value / development value.
I'd like to think that the development potential attached to many of Intu's assets due to their locations (majority in major city centres) should shelter them a little from yields at a comparable level to what these retail parks have been sold as.
Obviously Lakeside & Trafford, the two huge jewels are out of town but they have such critical mass that they could act themselves as centre's around which to anchor further developments.
Maybe I'm reaching for straws to clutch here but I would be shocked if yields for say Nottingham Vic Centre / Metro have slipped higher than 7%
but BV-20....how much of that is built into a MACP of £192m and sale of which keep the bondholders and banks etc fed ?
but it is staggering how much as been invested into these parks to create these cathedral like retail empires ..only to then have to flog them off at such discounts and yields....staggering
Certainly those out of town retail parks would be considered fairly prime and you would have expected yields to be circa 6/6.5% a few years back .Structural shift
Umeed Healthy Returns this unfortuantely is what is called market evidence which valuers rely on Suspect the best Intu can do to shift will be BV -20
Looks like a bit of value there .It's clear H are taking a sensible approach doing their best to keep LTVs to 40% .and prepared to suffer a hit now That possibility for Intu long gone but yet another pencil sharpener for the corporate valuers
You can just visualise amongst the magic circle the vultures in the insolvency dept lusting after the potential juicy sale fees peering over the Chinese walls as the valuation dep't whip out their set of Parrys as they muse over Intu's portfolio
Holy Smokes, Sain, Have you seen this am's RNS from Hammerson? They've finally flogged off the retail centres they've been marketing for almost two years, but, talk about having to bite the bullet, they could only sell them at a yield of almost 9% and at a 23% discount (That's not a misprint - Twenty Three Percent) to their 30th June 2019 valuation.
Now, I appreciate that comparing retail parks to prime centres is like contrasting camels to thoroughbred racehorses, but it does make me wonder whether my January guess that the worst that Intu might see was a 15% drop in values over the same six months, was possibly a tad optimistic. We shall see on the 5th.
This sale, the biggest in the sector since 2010, should reduce their overall LTV to under 40%, yet the SP is still down 60%, which goes some way to explaining why Intu's fall has been 95% with their LTV up at 65%+.
On that note: Peter Bill in Property Week
Next Tuesday (25 February) Hammerson will declare its 2019 results. Past figures have not been as bad as imagined from a company holding £9.5bn of largely retail assets. Rents are up from £305m in 2014 to £347m in 2018. Occupancy? Bumbling along around 97%.Trading profits? Up from £174m to £240m. Total returns have nose-dived from 13% to zero. Negligible rental growth and falling capital values have seen to that.
But sales have prevented the loan-to-value ratio rising more than 7% to 40%. The share price has crashed from more than 600p five years ago to 230p on Wednesday, wrecked by carnage among retailers.
At a Hammerson press drinks event in January, the main feeling among our hosts was relief at not working for intu. Although one topic caused embarrassment when raised: “What are you and that French outfit that took over Westfield going to do about Croydon?” Last week came half an answer. Unibail-Rodamco-Westfield placed its 50% of the £1.5bn project on the back-burner and set fire to the current plans.