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Market has missed this Rns totally. Should start climb back to 60p area before next big Rns.
Caught on the hop? Had a little punt and not showing? Any LTH thoughts?
LXB Retail Properties Plc, the Jersey resident closed-ended real estate investment company focused on edge of town and out of town retail assets, is pleased to announce progress with the planning application for the revised Phases 2 and 3 at Rushden Lakes. The Company has been notified that the Secretary of State for Communities and Local Government has decided not to call in the application. The s106 agreement is well progressed and should be signed shortly at which point East Northamptonshire Council will be in a position to issue the planning permission. The six week statutory review period will start once the permission has been granted and once the six weeks has elapsed, the planning conditionality included in the funding arrangements with The Crown Estate will be satisfied. The funding arrangements with The Crown Estate also include letting conditions. As previously announced, the arrangements require a total of 75% of space on Phase 2 and 60% of space on Phase 3 to be pre-let. This has been achieved in respect of Phase 2 and will be achieved in respect of Phase 3 once the letting which is currently in solicitors' hands is exchanged. The final condition is to sign a build contract for Phase 2 and Phase 3 and this is well advanced. The Group is also pleased to announce that restaurant chain Bill's has exchanged a pre-let for 3,100 sq ft of space on Phase 1 which means 93% of Phase 1 is pre-let by floor space. Tim Walton, CEO of LXB Adviser LLP said:- "The notification from the Secretary of State is excellent news and removes a significant uncertainty around the timing of the further cash receipts from The Crown Estate. We hope that the s106 agreement will be concluded swiftly and look forward to notifying shareholders once The Crown Estate funding arrangements have become unconditional."
News that the BoD are increasing fees to the related party investment adviser is going down badly. Logic says that with a shrinking portfolio to manage,and missed milestones the fees would be reduced-were they not a related party! Stuff that brings aim into disrepute. Weak Bod being managed by the executives. Time they acted for all shareholders
Good news today planning permission granted for large development at Rushden lakes which will add a plile to asset value-shares should rerate substantially.
An outside property management company is appointed to manage the building and collect rent. The fund pays for this. What value is the fund manager contributing to the asset at this point to justify the management charge? The longer the funds manager takes to sell the asset the more management fees they will receive. They are then compensated for failure. The Directors of LXB Retail Properties PLC earned £305,000 for the y/e 30.09.2016. If you compare that the fund manager earned from the fund, £4,632,039 for y/e 31.03.16 it is clear where the power and expertise are concentrated. The directors should represent shareholders, but in this instance they are just rubber stamping decisions taken by the fund manager. When the remaining assets are transferred to a new company the management fee structure should be reviewed otherwise management can take forever to sell the assets and milk the fund try by charging management fees until the end of time. Management fees should be reduced to 0.5% in the new company if the fund manager wants to share in the upside and there should be a time limit placed on being able to charge management fees. If the fund manager say they tie everything up withing a year they shouldn't benefit if they fail to achieve it.
Further to my previous post, the total management fees paid by the fund to the fund manager from the 1st of April 2011 to 31 March 2017 (includes an estimate for y/e 31.03.2017)is £29,153,075. The take home pay for the same period for the fund manager (after all office overheads) is £21,763,769. So the fund manager made £21,763,769 during the mentioned period. Now you can appreciate that the fund manager benefits extremely if there are delays in construction projects etc. The fund's original intended life span was 5 years and we are more two years past that. By failing to complete projects in time and selling them, the fund manager ensures that they will keep receiving massive management fees.Shareholders get hammered when there is a delay in completing projects, but the fund manager benefits from it. How are the fund manager's interests aligned with the shareholders in this scenario? The Stafford Riverside Project is complete and the final tenants will shortly move in, but the fund manager will keep charging management fees on this asset until it is sold, despite contributing any further value to the asset.
Did some research. Management fees paid by LXB Retail Properties PLC to LXB3 Partners LLP. The first number is the gross management fees paid by LXB Retail Properties Plc (the fund) to LXB3 Partners LLP, the second is the take home amount for LXB3 Partners LLP partners after paying for all office overheads etc and the third number is the take home pay for Tim Walton, the highest earning partner of LXB3 Partners LLP. 31/03/2011 - £2,402,212/£1,459,124/£;372,583 31/03/2012 - £4,250,829/£3,534,442/£;710,291 31/03/2014 - £4,924,745/£4,166,678/£;890,467 31/03/2015 - £4,091,349/£3,242,851/£;645,033 31/03/2016 - £4,632,039/£3797,117/£805,907 31/03/2017 estimate - £4,500,000/£3,500,000
Year ended 30 September 2016 - LXB Retail Properties PLC These numbers says it all: Fund management fees paid to fund manager - £4,684,290 Costs recharged to fund by fund manager - £109,815 Directors' fees - £305,000 Loss before tax for the fund - £15,144,695 LXB3 Partners LLP (fund manager) Year ended 31 March 2016 results Members' remuneration charged as an expense - £3,797,117 After paying for all office related expenses the fund manager was able to distribute £3,797,117 to the 6 partners. I wish I could of invested in LXB3 Partners LLP instead of LXB Retail Properties PLC as this fund manager makes a massive profit even if the fund loses £15,144,695. Any delay in the completion of projects causes a big loss for shareholders, but extending the life of the fund means that the fund manager can cream off more management fees for longer. The management won't reach the performance hurdle, so they have zero incentive to wrap up the fund quickly. The fund was never set up to benefit shareholders. A case in point is the delay at the Brocklebank development. The fund manager gets paid a management fee for assets under management, not NAV. So even if the development has been forward sold, the fund manager will receive management fees of the value on the project until it is finalised. So, the delay caused a loss for shareholders, but for the fund manager, even if was not intended by them, the delay will end up with them earning more management fees compared to if the project was finished on time. The only winner in this scenario is the fund manager. The massive management fees charge is a real drag on the fund and the net asset value of the fund will drop as assets as forward sold, but the management fees will still be based on assets under management. So you can end up with the distorted world where the value of the fund could be £40m but the fund manager is still entitled to almost £5m in management yearly fees. The fund manager is the only winner here. Shareholders are being shafted big time. And now the fund manager will propose transferring the assets which can't be sold before March 2017 to a new vehicle and then they want to share in the upside still charging management fees. Go to the Companies House Beta website and search for LXB3 Partners LLP. I'm don't have time at the moment, but I'm sure the fund manager has earned more than £30m in fund management fees during the life of LXB Retail Properties Plc.
Appears that sp has reduced to just under the current NAV of 38.7p.
Appears that sp has reduced to just under the current NAV of 38.7p.
Ex date is tomorrow at 7am.....
Short term strong buy for the cash return, 18p a share.
Asset value last year estimated at 79p by broker-all to be returned in CASH by mid next year as co liquidates. However value thought to be higher by now-could be another 5-10p, up to 89p
Today's announcement seems to suggest, to me, 14p cash payment per share.
Hi I'm considering investing and was interested in your comments re Company being liquidated over the next 9 months - can you elaborate on this please? Has the been announced in an RNS? Sorry just trying to find out a bit more - thanks.
bought some today
Does anyone have any idea what a fair value / NAV might be? Many thanks.
More director share buys. The directors and management team now own around 15.35% of the company. Does anyone smell a buyout? I'm sure that the directors and management will not want to sell assets in the current market environment and it will be worth taking the company private and selling the assets at the best possible time. An offer of around 70p will convince most shareholders to sell.
Directors and their pension fund just keep buying nearly every other day. Company is being liquidated over the next 9 months so they must see a much higher value than todays share price. A year ago they suggested a final value of the assets which indicated that at todays price the amount of cash to be retorned could be in the order of 90p I've been adding as the directors have-well worth anyone doing the same in my view as with the amount of buying by the directors I CANT SEE ANYTHING BUT UPSIDE HERE.
And more 'related party' buying yesterday just notified to markets. 940k shares. this gets better almost by the day...
I guess whether it is attractive depends on your objectives . It will never be a 10 bagger or takeover target but they are tough to spot. But as the BoD wind it down and sell assets capital is returned in chunks. I believe it is very low risk and think of it as near-cash but with a much higher than cash return. I am hoping it will return 70p in 12 months o r so. Anyone paying sub 60p could pocket 70p -15% return. Maybe not a big deal but works for me as a great risk/ reward play.
Is this company such a big deal? We get huge dividends and then the share price plummets. What you gain in dividends you lose on capital. Swings and roundabouts.
Director buying another 600k pounds on 8 July so solid confidence from someone with the inside track. Good enough for me. Time to average down and load up while still at this low price!
.... but quitting (quit) whilst ahead. All the Best and Good Luck to All.