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.
Try your hand at this one ?
MAYPOLE -DANCING AROUND IT
The Coombs twins are nobody's fools , in fact the polar opposite .
Picking perfect timing to sell on (2017) the suburban hybrid Maypole development ,neither fish nor fowl .Developed the site,secured Travelodge on a long lease negotiated a lease with CPI rent review kickers to max out the value.
An impressive selection of ground floor retail tenants assembled too.
You can only salute them for a job very well done .
Having acquired the site developed and let .Just the thorny problem of getting the resultant income producing investment away for a good price and banking a decent profit
Mindful of course that it was only in 2012 that Travelodge were in trouble and gave landlords a good kicking .
It couldn't happen again ,surely not ?
Suspect Peachey / Williams of Ramsdens were very happy bunnies managing to getting it away for their clients to RLE for £6.1m at a very respectable yield of 7.22% with a rent roll of £471.874pa .£201 ,000pa "secured "on Travelodge
So fast forward to 2020 ,rinse and repeat as Travelodge VC backers put the gun to landlord's heads again . Accept a 38% crewcut or risk getting SFA
That means RLE are facing potentially a rental haircut of £76,000pa (backdated 3 months) on Maypole til Dec 21
I wonder how much that will rock the investment value ?P utting aside any distressing on the yield of the ground floor retail Night what value would you place assuming this agreement is reached on the 19th June the risky Travelodge income now of £124,000pa with a reversion in 18 months to £201,000 pa or possibly a vacancy £1.7m?
As ever DYOR
Certainly don't think RLE are likely going to go bust ,far from it .You are now reduced to putting words in my mouth
In fact I would seriously think of an investment at 25p .
However the revenue is going to get a kicking and replacing quality tenants in empty buildings is going to be very difficult
Good luck to them on that
You mention yield .That has a nasty habit of disappearing over the horizon with its backside on fire when the lease expires and the building lies empty .Soon going to find that out in Telford when Hewlatt Packard lease ends A Herculean task of attracting a tenant of comparable quality
Noticed you dodged giving your opinion of the current value of Crewe . Perhaps you don't have to give one when broking product or maybe you are labouring under a grave is understanding it's prime.
Oracle of Omaha - then there's you imbecile of Midlands!
People had enough of you on the Purple Bricks forum.
It's extra pocket money. You will be the loser not taking advantage of this great buying opportunity!
Let me guess this right you have no formal track record in property investment other than your home and ISA! Yet sit round critiquing this company. What is the purpose of you posting here then? Go criticize airlines, oil companies etc.
Talking sub-prime (heard it all now - please stop it). Do you know how to read a companies financial statement. Basic analysis assets VS liabilities. So in your eyes RLE must be going bust?
They rely on yield. Their core strategy isn't fixed on asset value growth that avenue is an addition. Very different story with Intu. Besides commercial property is usually on long leasehold (Moosh!). Purple Bricks is more likely to feel the property market fall. Values haven't come down by 40%, trading volumes are up. pre-lockdown. Any capex value drop in housing market will be seen when Furlough ceases and people get laid off.
Not going to get detailed with you as the statement you made shows how very little you know!! Stick to the pictures in the Financial Times. AS YOU WERE.
Nightwatch
Bless your cotton socks .You really do need to start using your eyes and read properly and stop relying on that gut of yours. Your attention to detail is sadly lacking .
You have got it wrong yet again .
All I said was that I have never been a Director of a major plc
Sounds like you brokered one of the properties in the portfolio. Which one?
"This stock is undervalued it's basic economics"
Well that is a matter for the market to decide .
One thing is for sure is that interrupted growth you optimistically refer to has come to a grinding halt
In a challenging market .The differential between investment and vacant possession value becomes all too apparent as asset management moves into a damage limitation exercise
The whole retail sector is due for a rerate . Your 15 years experience should tell you that in a challenging market yields on sub -prime investment property shift outwards.Property stock bought to trade is unable to be sold at a profit unless leases are lengthened and let to substantial covenants . This brings their whole MO into question unless they can raise a warchest
IMHO there looks to be a very limited selection of properties they can turn to book a profit .There are some and no doubt
they should be getting busy popping them out even if BV carbon zero .They will be able to use sale prices to try and give some of credence to the value of the rest of the portfolio -on the basis of a rising tide lifts all boats ,no matter some are shipping water
You have had sight of all the info on Crewe (The portfolio Crown Jewels) .Using your 15 years broking experience what is your opinion of its freehold investment value subject to and with the benefit of its existing leases in today's market willing seller,willing buyer
You seriously can't think this was a good buy at £20m .A costly mistake .
So basically you're not even RICS qualified yet have such highly opinionated (Plane spotter). Almost like a football fan not even playing Sunday pub football telling a premiership baller how to do his job!>. Hilarious.
I have over 15 years property experience and brokered deals up to £117 GDV on a given scheme. When you have no tenure in a sector other than reading papers and trolling Rightmove! LOL.
I 'really need to stop while ahead' - no mate you really need to get a life and quit while behind.
This stock is undervalued it's basic economics. What vertical hasn't been affected other than pharma, online retail, supermarkets.
"RLE has proven consistent growth year on year. "
You really have your head buried in the sand on that one if you think FY20 isn't going to halt that run