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Gewillia... “all attempts at valuation quite worthless...the expert valuations were worthless at the peak, and probably worthless now. that’s true.. but is the property worthless or just the people tasked to value it? What we can say with some certainty is that sentiment is very weak, and under those conditions, people are more inclined to act out of emotion than good sense. There will be investors out there with cash to spend, who can take a rather more calculated look at the likely medium term reality. It will only take one or two deals to get sentiment rolling in the other direction. ATB
Sain, your news from Twitter is beyond extraordinary. This is beginning to remind me of the worldwide development collapse of the 1991/92 when Olympia & York (Creator of Canary Wharf) ran out of cash. The Reichmann brothers had been the world's largest and most successful developers and then the music just stopped. O&Y died and was carved up by the bankers.
If (and it's a very big IF) buyers who signed contracts back in January & February are now telling vendors to whistle for their completion money, this market is truly knackered. In effect, there would be no market. The concept of the 'willing buyer' has temporarily evaporated, making all attempts at valuation quite worthless.
It's all very well saying the vendors can sue and they probably have very strong cases too, but it will take years to get these claims into court. Meantime the vendors are being starved of cash at both ends, and some may well die of starvation, long before anything gets near a judge. Boy, are we living in 'interesting times'.
Heaveho
I think we are now witnessing hope disapperaing over the horizon with its backside on fire
If you think the Gov't is going to step in with every property owner and help pay their debts to the banks I think you might be disappointed
"How much can be raised through selling and raising is the question."
With the lending market currently frozen not a lot .Cash buyers normally want a lot of bung for their buck
The market eyes will now be firmly fixed on the Orion / Hammerson " £400m sale" of the retail parks .We are just about to witness a case of current market value in formation . A couple of Sumo wrestlers entering the ring slapping their ample thighs
Both INTU and their creditors will be now be very concerned that a similar spectacle of ducks and drakes will be played out by Generalli in Spain. Looks like the best hope there for INTU is that they will leave hopefully a generous deposit on the table which might go towards one of the penalty payments for covenant breach .
Suspect that INTU unfortunately have already factored in that this deal was home and hosed which will throw up another set of problems If this deal doesn't get over the line where does that leave IiNTU
Double should be particularly attentive as this batch of retail parks that Hammerson have exchanged with Orion are similar to the one in N Ireland that INTU sold which he enthusiastically uses as his benchmark valuation
So what can we glean so far, The deal with Orion was struck in February and they have announced that they
are prepared to leave £25m on the table thats 6% of the purchase price ignoring costs
That is just the starter for 10. What will Hammerson be prepared to accept? Suspect a bigger haircut than 6% to get it over the line. Who knows.
Perhaps Orion might come out of this taking just part of the portfolio ?
Somebody asked me the other day why I am still here .This is a property market in flux with structural changes likely to appear Like being at the premiere of an Oscar winning film
Certainly some brinkmanship here as Orion could tap some of their other closed funds for funds to participate in the purchase .if Hammerson guarantee the rents for a year or so so somebody will come up with some external funding
As Gewellia said in his post its everyman for himself . "My word is my bond thrown out of the window"
What is very concerning for INTU is Orion clearly are having difficulty in getting funding . They are one of the biggest players in town and not only that a large shareholder in INTU .
So reverting back to your question Heaveho where does that place Whittaker It means that his partners will need to be cash buyers too
If they will be looking to bail out the private shareholder I would be very surprised
Whittaker has approximately 320million shares? These were worth over a pound each with total value of £320 million. Now worth £15million.
Surely Mr Whittaker will do all he can to increase the value.
Im not a holder at the moment, but in the current climate every sector has suffered substantially from leisure to retail and oil to banking sector.
Mr Whittaker will surely be speaking bank to grab some of the that money Saunak released.
Offloading retail centre at revised prices.
Arguments on both sides but being the CEO talks must be going on and with various parties.
Im sure the buyer will benefit in long run at discount price of purchasing a retail centre as these prices will go up later.
How much can be raised through selling and raising is the question. Plus rents will need to revised to for period of 6 months at least.