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Believe it or not @saintly, I have come across another another person who spends their lives moaning about a company they aren't invested in. In the new case, they have a grudge against Ground Rents (both the company and the existence thereof). It's a worrying trend. Next we will have non-investors protesting about oil wells and tobacco plantations. There will be nothing left to invest in. The world will end !
Keep those blinkers on and ignore events which are taking place in real time
Well spend your dividend wisely . Rental income has taken a sharp turn south and Q2 2021 ,great big holes start appearing with loss of income from Premier Inn & N Power .2 quality tenants which will be difficult to replace
Some smokey yields being achieved on industrial property investments at the moment .Certainly flavour of the month
RLE really missed a trick there I bet they don't half wish they had bought a nice big shed in the Black Country rather than the Market Centre Crewe where rental income is dwindling
Hindsight is a wonderful thing !
Once again dividend day is upon us. The share that just keeps giving. Glad to have this regular divi coming in. Good luck to all fellow shareholders and here is to another good payout.
Today Hammerson annouced just 41% of Dec quarter day rent demands collected
Town Centre Securities announce d
Premier Inn, owned by Whitbread Plc, unexpectedly paid only half of their rent due for the latest quarter, leaving £0.1m unpaid, without any agreement.
Big beasts playing hardball
Adv
We never get to hear the bad news that's lost in translation
Never get to hear if rents have been reduced on lease renewals or break option discussions No mention of the rent on Travelodge at Holywood
NCP announced yesterday that they have stopped paying landlords .RLE rely heavily on car park income at both Crewe and Redditch Different operater but same pressures apply
Presumably he is highlighting the positives regarding insurance payouts for companies forced to close. Happy Days.
Pea****s owe creditors £70m so I guess RLE can whistle for the £175k pa rent at Crewe
No doubt we will be hearing from the CEO soon on rent collections soon Let's hope he spells it out clearly in actual numbers This is of course before the big hits on Oldbury &West Plaza
News from elsewhere is filled with doom and gloom
Land Sec today
Landsec post rent collection statistics showing from £112m ordinarily due on Dec 25th, just £65m was collected five days later: £8m was voluntarily given up: office rents suffered unusual shortfall of £8m on £60m. Only 36% of retail rents collected.
Derwent London post rent collection figures showing only 26% of 25 Dec retail rents (out of £3m) and 87% of office rents (out of £40.9) have been collected.
Alas ,unlikely for RLE where 2021 is the year where unfortunately the rental voids on the big beasts kick in .On lease expiries the financial situation is often flattered initially as the freeholders normally manage to screw a capital payment in lieu of dilapidations. The loss of rental income gets unnoticed immediately .
In addition lease renewals the advantage in negotiations is firmly skewed towards the tenant
The capital payment s is only likely to disappear recycled into a host of incentives to entice a potential tenant, in should they be lucky enough to secure one
Tenant Losses
Notably Premier Inn at West Plaza and Npower at Oldbury .They will be feeling the loss of some of the big names in their portfolio keenly
Persimmon Homes
St.Gobain
Yorkshire Bank
Sainsburys
Hewlett Packard
Toni &Guy-Walsall
amongst others
A good end to the week so let the Christmas cheer flow! Merry Christmas to one and all and here is hoping that 2021 is better to everyone than 2020 has been. Next month we can look forward to yet another dividend payment so something positive to look forward to. May your gains far exceed your losses !!! All the best to all fellow investors and may good times meet us all .
Dr.Pangloss on again
"All is for the best in the best of all possible worlds "
“Optimism," said Cacambo, "What is that?" "Alas!" replied Candide, "It is the obstinacy of maintaining that everything is best when it is worst.”
The sun is out, the price is blue. What a wonderful day to be in love with the world.
The CEO is going to have to stretch his network to the limits and get his fingers around the throat of all the public services he has engaged with in an attempt to fill the gaping voids which are starting to appear in the folio
He is going to have his work cut out.
However you spin it .The investment purchases over the last 5 years have been poor .Entering geographical areas where it seems essential due diligence have not been exercised
Crewe Market Centre has been a huge mistake where retailers will be demanding rental haircuts on lease renewals
IMHO no more than £13m in today's market
The biggest mistake of them all is to have overlooked the entire industrial property sector where their peer group have creamed up
As ever DYOR
The competition has been fierce but we now have a strong contender in "Dog of the Day"
Oldbury has leapt into contention and now a slam dunk.
Not content with buying an office building which has been empty 5 years .Npower are not renewing their lease so as for early next year its goodbye to £517, 650pa and now zero income from that investment to look forward to.
As usual shareholders treated like mushrooms and kept in the dark about the largest single rent in the portfolio .
That is quite simply not good enough
Fair play to you boys -keeping the faith despite what is happening at the coalface which only goes to show that the company has made some truly poor purchases during the last 4 '5 years mitigating all the good work they have done around Colmore Row as they reached out beyond their knowledge base
NUTHALL ROAD NOTTINGHAM
This purchase certainly right up there in the "Dog of the Day "Competition where they are left with just the charity shop paying rent. A drop in capital value of perhaps 50% and now having to fund the purchase price from elsewhere.
This little beauty bought in 2016 at a yield of 8,75% producing an income of £216.700pa and less than £40kpa income now both Bathstore & Sainsbury's off the premises
Well said. The company that just keeps on giving!!!! Pleased to see the quarterly dividend once again. Glad to have this share sitting in my portfolio. What's not to like!!!! :-)
Happy New Year indeed.
2021 is going to be a pivotal one for RLE with a number of chunky leases expiring , break clauses and voids kicking in so spend that 0.5p very carefully.
Suggest you get a few pints of Lumphammer down your throat with the proceeds .
The CEO will be able to raise a glass quite cheerily and be thankful that he managed to dump his white elephant West Plaza ,West Bromwich into RLE for a very tasty £8m in 2016.
That will do very nicely .Thanks for the fat cheque .
Remember that one that was the property adjacent to Metro Court which they already owned.Citing marriage value to justify the purchase .That marriage didn't last long. An early divorce as they have subsequently sold Metro Court independentaly .
Priceless, In his own words in the RNS
"In the longer term, for residential development of the Property. The Company also believes there may be additional marriage value from combining the Property with Metro Court, the adjoining property it owns "
Buried in the long grass.
Premier Inn have exercised their break clause so unless they change their mind it's "ta-ra a bit" to £311,000pa in April 2021.Not only that a great thumping unallocated service charge to boot.
That "ain't getting the baby a frock and pinny."
This disaster was always on the cards. COVID or no COVID as Premier Inn have recently opened a brand new spanker close by in New Square.
Just moving out of West Brom town centre we come to J2 of the M5 at Oldbury where Birch & Birchfield House sit .
2 decent looking office buildings developed by Stoford .
These were bought in 2015 .It hasn't worked out well to say the least .
Birch House has been empty since then ,5 long years gathering dust .
You couldn't make it up.
It beggars belief that this building was bought without an occupier in mind .Bond Wolfe being the local estate agents you would have thought would have been aware of demand.Heh ho.
It gets worse.
Npower who occupy Birchfield House the other building, their lease expires in March 2021 .
Bond Wolfe as well as trying unsuccessfully to let Birch House and have also been punting Birchfield House seperately around the market since 2017 without success seeking £6m .
https://bond-wolfe.com/properties/birch-house-birchley-park-oldbury-b69-2aq/
Shareholders can only hope that Npower renew their lease as the vacant possession value would be considerably below £6m .It doesn't bear thinking about
They pay a staggering rent of £517,650 pa.
If they decide to renew the lease and remain that rent is likely to get a big haircut,as is the way of all flesh. Npower's valuer will be able to point a finger at the empty building next door to back up their case for a substantial reduction
That is on top of the recent loss of £216,700 pa rent on Titan House Telford
Happy New Year indeed .
Don't let any unfortunate facts colour your judgement,mind.
.... and it's a Happy New Year from Mr. Bassi.
Desperate measure for desperate times
They failed to sell this at auction ,today
https://www.bondwolfeauctions.com/properties/121172-property-auction-bromsgrove/
Crewe reminds me of the Sex Pistols -Pretty Vacant
So since 2016 the date of purchase Brighthouse have gone west ,Pepco and Roman Originals have vacated
The Halifax lease expires this month so if they decide to continue occupation they will be driving a coach and horses through the current rent of £145,000pa
Likewise Pea**** currently in administration lease expires next year currently paying £175,000pa .That will involve a severe haircut if a management buyout
It gets worse Clarks Shoes lease expires early next year too who have announced a shop closure programme
The income from the car parking has been hit for 6 this year
This was what the CEO said in 2016 about the purchase
REI's chief executive Paul Bassi said: "The acquisition is fully criteria compliant with REI's investment strategy and operational geographical radius and provides significant opportunities to add value through rent reviews, lease renewals and the creation of additional units on the substantial external car parking facility to increase the retail footprint of the overall site which is attractive for retailers and consumers alike.
"This latest acquisition offers good opportunities to enhance performance through strategic asset management and takes our contracted rental income to £15.7 million, up 31.8 per cent since the 2015 year end.
It's been all down hill since.Some very happy Scottish Widows getting this old chestnut off the premises trousering the £20m having sold Park Street Walsall to RLE as well
.https://www.business-live.co.uk/economic-development/real-estate-investors-acquires-walsall-7887254
Adv
Bless your cotton socks
Bristling with indignation that anyone should have the audacity to question some of the quality in the portfolio
Certainly be interested to hear anyone's else view of the Market Centre Crewe their largest single asset
Here is the original investment particulars in 2016 when RLE bought it for those who prefer to make a more objective assessment
https://www.jacksoncriss.co.uk/images/investments/pdf/1458812826_JC0082_Crewe%20Brochure_v10.pdf
Been all through this with him @Kristof - you are wasting your time, he isn't invested, he reminds me of one of those guys who plants needles in supermarket food and then tries to blackmail the company. He simply has a grudge against Paul Bassi, maybe he was sacked from his job at a shopping centre ? Who knows ? Easiest way is just to block him - he thrives on winding people up. If no-one challenges him he will wither away.
Kristof
Not invested here but the West Midlands commercial property scene is of great interest to me having been closely involved for many years hence the property portfolio and its comings and goings very much of interest to me as you can probably guess.
Invested in Mucklows hence me casting my eye here on the W.Midlands theme when they got swallowed up by London Metric
Many of the properties in the portfolio are well known to me so If find anything of interest I will flag it up
What I have found surprising especially as it's a REIT is the unwillingness of the company to flag anything up which can be remotely perceived in a negative light .I find this very strange especially as the commercial property market is in stress .
Perhaps you prefer not to hear the bad news ?
Crewe for example with its recent voids which have appeared and where Pea****s will be likley to slash the rent that £20m purchase a few years back I reckon IMHO unlikely to get more than £13m today
Having said all that there are a few decent lots in the portfolio but in 2016 shareholders would have been better served they had kept their hands in their pocket or buying up some industrial .
I also haven't dismissed an investment but certainly not yet
Sain
If you are so sure of all of this a result of your research, why are you invested here?
If not invested, why are you posting ?
Kristof
The problem is that many of the properties have been pure gambles bought on short leases in the hope that they re new leases or forego break clauses Some of those recently purchased have been bad choices Telford Crewe Redditch Oldbury Wolverhampton &,Nottingham where they failed to undertake due diligence The Sainsburys convenience store had been trading badly and they broke their lease at the first available opportunity
A right bag of spanners
You would never know it by the updates which only contain good news .As ever DYOR.
The problem is when they are located in off prime position any slackening off in demand the freeholder is left holding a very expensive baby Telford being a prime example
The situation hasn't of course been helped by COVID but the writing on the wall came into play well before then for the largest asset Market Centre Crewe which is now a real problem.A situation far beyond their skillsets inhouse
PlazaWest,W.Brom the white elephant the CEO owned who stuffed it into the portfolio they now have a real problem filling the lumpy gap to be left by Premier Inn leaving who have exercised their break
Good luck with your investment