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20p - 15p is the price range then allow for another 50% discount post issue. Wake up Umeed.........face the facts.
Please don’t buy if intu borrows money at high interest rate from vulture funds. Any bonds or loans yielding more than 4% at current state of the market is unsustainable and that would render the new capital raise useless. Intu needs pure equity no more new loans / bonds as they would be expensive to service. This could be the final part of the Ponzi to extract more money from private investors. I would buy intu debt over its equity because the directors are Ponzi artists.
I think the potential RI has basically raised the for sale sign .Whittaker will be mindful of how Ashley as a major shareholder got outmanouvered on DEBS will be putting together another consortium bid
This is a once in a lifetime property opportunity. its probably not too big for some family trust like the William Pears Group
only someone with a strong balance sheet that can handle 4.7B of debt can take this one. There's very few. doubt this will happen. With RI the cash will have to be funded by existing shareholders.
Well this is where a good property entrepreneur comes into his own threading together a consortium and already lining up the ducks with a couple of sub -sales to trim the pot
Cometh the hour cometh the man
I would be surprised and disappointed that there is not a property alchemist who would not seize this golden opportunity. An individual like Elliot Bernerd in his heyday with a couple of phone calls would have it all sorted
Retail properties have been overtaxed via business rates. The industry needs a strong lobby group to influence the government.......click n collect makes sense and should see growth. Retail properties must be run by fund managers only not REITs as it is too expensive. We are going to see direct property ETFs very soon charging 0.5% for management.......no dumb CEOs and dodgy CFOs scheming with hedgefunds and valuation. I am about to write to blackrock CEO......would be nice for fake executives to not get a job anymore!!!
a property alchemist
..from India or China perhaps.....trade deal with the Indians and Chinese and then Indians or Chinese collecting rent from stores selling Indian and Chinese goods...serviced by the English earning cost of living wages
now, wouldnt that be a perfect ending after Brexit ?
There is a huge pot of safe haven money looking for a home These trophy centres should be an easy pitch Plenty of home grown individuals too
Not straightforward, the creditors would prefer administration so that they can pick up the pieces. Same bondholders and debenture holders are behind the huge shorting which has made them huge money. Same bondholders ensure that same dumb people are employed to run the company. Just like Debenhams, why pay huge divi when debt could be paid down and refinanced at cheaper rate?
This is a PONZI and retail buyers are the easy target.
Unlike DEBS INTU is asset rich
The dilemma is how much are they worth ?
No guarantee that after the next valuation haircut that still has not got further to go The yields are now rewarding on these trophy centres
No surpise that someone is prepared to break from the pack and have a pop here
Whittaker of course key to all this He is no greenhorn I should imagine he is deeply involved in conducting a beauty parade of potential partners Maybe even including Mike Ashley
I would hate to see the bald eagles arriving here to rip this to shreds
Exciting times here The jury is out
Thin on the ground granted but there are still retailers out there taking big lumps of space
Lendlease and Invesco Real Estate will lease a 37,500 sq ft unit to retailer TK Maxx at its Queensgate shopping centre in Peterborough.
RI should be a good news as it will fix balance sheet and make refinancing easier. I expect that intu management discussed the size if equity raising with banks to make sure that they are happy with end leverage level.
In Q3 conf call, intu management stated that they will try to raise enough equity so that LTV ratio is 50% at the bottom of the valuations. If this is the case, then I am glad that equity raise is only 1 billion.
Big question is at what price new investors come in. I hope intu management is not going to discriminate small investors and not going to sell assets for cheap.
I am puzzled why SP has dropped down from about 34p to 21p in anticipation of the equity raise. Fixing balance sheet for a company with very good tangible underlying assets should be a good thing.
Intu’s net debt is underreported and is a lot higher. The update confirmed that recent proceeds from Spanish asset sale would only reduce debt by 1%......that was between say 200 - 238 million. Now we know that 1 billion would only reduce it by 5%. Makes me wonder if they have any real equity apart from their over valuation of their assets. Are you saying that Intu needs £20 billion to wipe out debts? Makes no sense or may be the entitled & uneducated directors have been ripped up by their bankers.
High rents mean high business rates which is not good for retailers (tenants). A lower interest via refinancing would allow lower rent to flat rent but stable profit. INTU is a fraud, that’s why HMSO and its own Director walked away. If Blackstone sees no value here then the Ponzi is clear.
Selling assets reduce LTV by smaller amount than raising equity and keeping the assets.
I assume that all Spanish assets will be sold this year and 1 billion equity will be raised. That would imply around 6.3 billion valuation of the remaining UK assets at the bottom with debt about half of 6.3 billion.
I hope that new investors will be brought in by a way of selling some UK assets, bringing partners in big centers.
you have mis-interpreted that part of the update. Folowing the disposal the "loan to value" was reduced by 1% point.
https://news.sky.com/story/department-store-chain-beales-goes-into-administration-11913306
Another sharpenning of the valuer's pencil
Another old school retailer signing up to expensive rents thinking consumers will always pay up. The problem with real estate is base rent rate.......same with residential properties. Rent must be reasonable when valuing properties......how much rent would retailers be able to pay even during recession?