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Bassi and Daly taking the opportunity to pick up the share dump by M&G An institutrional investor with a wealth of property knowledge.
This year has been a successful exercise in dismantling the retail parades at A****s Green, Bearwood and Kings Heath and are now settting to on Leamington Spa which will have helped keep the banks happy and some reduction in LTVs
Some decent fees being earned by Bond Wolfe.
They are now geting busy on the office portfolio which will prove to be a little more difficult .Filling some of the voids will of course assist on that.
Birchfield House at Oldbury one of the 2 empty office buidings at Oldbury has been under offer for some months. It will be very welcome getting one of these old chestnuts away.
Titan Hiouse Telford The lease to Hewlett Packard expired over 2 years ago Since then they have got the ground floor away and recently the 3rd floor has gone under offer They will be keen to get this over the line which leave the other 2 floors to let
Another dice roll purchase which has backfired.
There is never any mention of course about the ailing Market Centre Crewe or any initiatives needed to address the voids
They haven't acquired any new stock for years .All sorts of opportunites will be presenting themselves lets hope they have a decent enough warchest to take advantage
32.00 - 33.00, wonders will never cease! Maybe further to run on this leg too?
One of the insti's could be keen to get hold of some cash quickly? The combination of c.7.1m recent buybacks plus the c. 4.78m director buys all at 28p, gives a pretty clear indication of where management see this going, and also provides tangible support at that level. Let's hope it's a sign of better times ahead.
I cannot see that it ever traded at 28 yesterday.....?
and you can't go much deeper than that. Just a £1m or so. Still not sure where they are getting these shares at 28p from ?
Always a good sign when those in charge dig deep and buy shares in the company. Rgds, Saintly
Thanks @K - lets hope for some good news on TMIP over the next few weeks.
Bond Wolfe have done pretty well breakig up the retail parades this year These would have been downvalued in recnt years I would have thought sufficent monies coming in to keep the banks happy and thel LTVs within a comfort zone
Yet Bond Wolfe seem to have hoisted the flags up on most of the portfolio Here is a case in point
https://www.bondwolfe.com/agency/properties/25-26-dudley-street-wolverhampton-wv1-3ey/
This was acquired for £2m in 2015 +acquistion costs Its for sale today at £2m less costs So an overall capital loss This might show a small overall gain on a revised book value & Nice fees for Bond Wolfe and the professionals but whats the point ?
Thanks adv11. I think I know you well enough by now to take your comments as I find, and hope you do the same with some of my more contentious stuff. At the end of the day, we both want what's best for us & our families. Glad I've had the discipline in the past to move all my investments into his 'n hers ISA's and my SIPP, so the dividend tax threshold doesn't affect me fortunately. It looks as if someone might have brought a defibrillator over here though as it finally looks to have some life in it, let's hope it's a sign of better things to come! My average here is 37 ish & I've got more than I really should have because of the yield, so it would suit me nicely to sell a few down if it gets back to 36-37. My portfolio has more than enough red just now but I'm not too worried about it. I've been here before and managed my way through so I'm confident I'll survive this bad patch too. In fact I've started buying a few more here and there, the yields are just so tempting and look rock solid! Have a great weekend my friend, very best wishes. K
Thanks for the reply @K - missed it until today. Well it was positive action for a day, we need more though.
OK, I am well down here, but the dividends almost make up for that. I don't need the money for another year at least, and we still have the assets as you say, if the amazing Mr. Bassi ever decides to sell up.
You hopefully realise that my past comments here are often tongue in cheek, in reply to someone who's name I can't even remember (blocked). An intelligent man, but with an admitted personal grudge against this company.
Almost everything is in negative territory at the moment. Today's announcements are better than expected, except for the facts I took profits from a few wind farm shares which are now up, and of course the cuts to dividend tax thresholds. But I am not too far off having everything in ISA's. All the best my friend.
Here is a pointless exercise. An investment hey bought for £6.1m + costs in 2017 is now up for sale at £6,29m In addition they are having to top up the rentals as they agreed a deal with Travelodge .
So unless they have taken a big slice off the original purchase price in a recent revaluation the only benficaiary here seems to be Bond Wolfe here with all the transaction fees ! https://www.bondwolfe.com/agency/properties/the-maypole-alcester-road-south-birmingham-birmingham-b14-5jf/
What a difference a day makes, eh adv11? Mr Bassi finally follows up on his promise to buy back cheap shares here, and the £ is recovering strongly as everyone bets US interest rates won't need to rise much further! A couple more days like this & I might be able to heat my baked beans and make toast instead of eating them cold from the tin lol. Hope you're keeping well, my SAR & TGA investments have gone south this week but I'm hanging in there...
Nothing wrong in buying shares back in on a dip but let's not forget the day job . Haven't added to the portfolio for sometime .
Nothing very brilliant for some of the dogs he has stuffed into RLE he has bought over the last 7 years The deal on the hotel at West Plaza he has kept very quiet about the terms.Suspect they don't compare very favourably with the previous deal with Premier Inn
Keeping their hand in the pocket might have been the prudent thing to do reducing LTVs & creating a bit of a war chest
Opportunities will be presenting themselves it would be a shame to be cash lite to miss out
Strange. The brilliant Mr Bassi takes immediate action, and no one has anything to say.?
A lesson in how to really perform a share buy back. ?
Where did he find £2 million shares at way below market price ?
Presumably something was already in the pipeline. More to come ?
Many thanks both!
Thanks for your comments sain, always helps to see another viewpoint and one that's based on more in-depth knowledge of this Trust than I have. Small recovery into the close this afternoon, perhaps today's sp fall was the final collapse before a rally? Maybe wishful thinking but, as saintly says, at least we're still collecting a decent dividend. GLA.
No not really .
Been very keen to invest in the West Mids property market since Mucks threw in the towel Just generally disappointed with RLE for moving outside their comfort zone chasing yield . Deeply unhappy Bassi shoved his West Plaza into RLE when the general market was aware that Premier Inn were being courted on a new site in West Brom and were unlikely to retain a presence in 2 buidings close by
The planning application went in shortly after the purchase. Another buildling within RLE's portfolio in West Brom town centre which will require some capex
Sain,
Thanks for your commentary!
Do you have any views/comments on how UK REITs may be impacted by the new budget and the Government's overall fiscal strategy?
Krusty
"Wwould be better off if the Board accepted defeat, sold all the properties and distributed the proceeds. "
Well to try and offload half empty properties in the current market would warrant substantial discounts to book value .There is no real sense to that iftehycan ddvlaueby letting
What they have managed to do successfully is to let ssome of the empty shops and then spin them out trousering a small profit More of the same if possible
Perhaps they ought to admit defeat on the Market Centre Crewe and take the hit . It will be hanging around like a millstone for years They must have devalued it below £14m after selling the Burger King so perhaps they might get £10m for it ?
"The market seems to have decided this is the dog REIT for some reason which I am unable to fathom."
They were at their most successful farming the patch around Colmore Row .They should have stuck to what they knew
Well RLE have had a nasty habit of burying bad news They have made some particuarly bad purchases since 2016 and made a number of stratetgic errors
1 Not investing in industral l/warehouse propertty was a huge mistake especially as West Brom. is located in the heart of metal bashing land and close to the confluence of 3 motorways All they had to do was walk out of he office door with an open chequebook in 2016 and they would have trousered some substantial capital gains
2 They moved out of their geographical omfort zone and buying kit where they have no experienceof asset managing like Crewea
3 Bbuying buildings on short leasers relaint on the company to renew often backfires in a turning market . Telford and Oldbury
Still its all about value certainly the price is becoming to look more attractive Certainly a buyer at 25p
Sorry for your loss saintly, I'm suffering here too. Taking the dividend into account, if you've been in RLE for a number of years as you say, you will have made, well, absolutely nothing. Down another 7% this morning, the market seems to have decided this is the dog REIT for some reason which I am unable to fathom. I'm still of the view that shareholders would be better off if the Board accepted defeat, sold all the properties and distributed the proceeds. In the mean time, the value of our investments continues to fall, almost on a daily basis, despite the company reporting reasonable performance. Go figure as the Americans say.
Topped up again today and yet again it is showing as a sale ! Are we looking at bargain basement prices in relation to dividend yield and if so is this the perfect buying opportunity? Main markets up over 2% yet not even a ripple here though it does appear that all my other reit's are pretty stagnant in price movement. Still a firm believer in RLE. Continued good fortune to one and all.
Rgds,
Saintly
Of those purchases in 2016 Boundary House Wythall let to the Grafton Group was brought at a price with an attractive yield of 9.5%
This reflected the fact that it had 6.5 years to run on the lease which means thelease has either ended or just about to end
Let's see how this dice roll has worked out If Grafton renew their lease they secured a bargain and made up for the others which fell flat on their faces .If not another empty building to let
Once again dividend day descends upon us. Money already in account so many thanks RLE for your valued contribution. Been in RLE for a number of years and continue to be happy with the dividend return. Would like to see that success transferred to their portfolio to improve their overall all round performance. Still a firm believer in RLE and so glad to have this company in my portfolio. Wish I had discovered REIT's so much earlier. Continued good wishes to all fellow RLE investors, those considering buying and those just watching. Rgds Saintly
I bet they wish they could wind back the clock and undo this bag of spanners ,Annus horribilis
"During 2016, REI paid £38.6m for criteria compliant properties, during the period of uncertainty, and as demand returned, sold £5.2m of assets into a strong investment market – sales that were exchanged in 2016 but completed in "2017.
REI also acquired Market Square Shopping Centre, Crewe for £20m and West Plaza, West Bromwich for £8 m.
Other notable acquisitions included Titan House, Telford (£2.75m), Boundary House, Birmingham (£2.45m), Commodore Court, Nottingham, (£2.38m), and 62/68 High Street, Bromsgrove (£1.275m).
Commodore Court was a classic mistake .Venturing into unfamiliar territories dazzled by the relatively high yield offered with Sainsburys as the anchor. Unaware it was trading poorly and they would be looking to exitthe property at he first opportunity. They duly did and now w resorted to let it to an eye surgery at a much reduced rent in admage limotaion exercise which they are trying to flog with a very hopeful price tag. .There is a break clause in 2026 https://www.bondwolfe.com/agency/properties/commodore-court-unit-1-nuthall-road-nottingham-ng5-5dq/
As ever DYOR