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Not hard to see why CBRE are so keen on the deal. I will be voting against.
DC's departure was announced in the 3 July paper posted to shareholders, setting out the acquisition terms. The statement said hat "As a result of the recent change in Telford Homes' strategy to focus on the BTR market, [DC] has agreed with the board of Telford Homes that there is no long term need for his role on the Board of Telford Homes and that he would prefer to look for other opportunities." I wonder.
When TEFand CBREwere knocking heads on an agreement the SP was languishing at around 280 p . So at 350 p it was showing a 20% premium .The rise in the share price in June has caught hem both out .
A 10% premium really isnt very attractive at all
Savills had a very close collaboration with Trammell Crow prior to their acquistion by CBRE in 2006. It seems taht alltheseclsoeconnectionsareseekig to put TEF on the top table .We the shareholders being collateral damage
Telford gives us a compelling opportunity to build on the success of Trammell Crow Company,” Bob Sulentic, president and chief executive officer of CBRE, said in a statement. “The UK is in the early stages of a secular shift toward institutionally owned urban rental housing, similar to what we have seen in the U.S. over the last two decades. TELFORD IS WELL POSITIONED TO LEAD THIS TREND, and their more than 300 talented professionals operating in London are a great addition to our company.
CBRE putting a very strong case for the acquistion of TEF but have only offered what amounts to a"fair and reasonable Offer".Why are the BODS not recommending one which is highly attractive ?
The only way to establish that is to openly market if the BODS are desperate for an out.The deal has been cleverly timed as a done deal so that any potential competiton will be forced to disrupt summer holiday plans to give this full consideration
Where did you hear about DC?
In the overall scheme of things, I cannot get as worked up as ISS with the re-election of PwC as auditors. One way or another, TEF is virtually certain to delist and so this issue is somewhat academic. That same comment applies more generally to a number of ongoing issues that I had intended to explore next Thursday. I will probably attend, but it probably be a rather awkward meeting, especially as the BoD will not be able to comment on the key issues that shareholders really want to discuss. I hope that the Scheme Document is issued before the AGM, but we don't even know when that is due to happen.
The problem is that, now this bid has been accepted, the TEF business has to operate within relatively tight constraints and so it is effectively in limbo. I don't want a rushed sale (because I hope that there will be better bids forthcoming), but long term stupor would be very damaging. I wonder how many of the management team will hang around for very long. I see that David Campbell is already off.
https://www.telegraph.co.uk/business/2019/07/07/iss-raises-concerns-telford-audit-partner/
Well CBRE are not amongst one of the global real estate leaders for nothing.They will be able to provide an inhouse management/ .letting service for BTR if deemed appropriate .Enjoy a comparative global reach to investors.landowners etc with JLL and Savills. Provide bespoke funding for individual deals if needed .Introduce sites etc Provide planning services
What they will also be able to do is capitalise on TEF's valuable partner status and widen the geographical remit.Clearly well resourced to gold plate and keep the workforce happy
In fact its an absolute cracking buy and sheep steal for CBRE. They must be gloating . TEF all set up for them to walk in to the BTR party at the very highest level /The BODS have negotiated a very poor deal for shareholders who want to continue the journey
As Exdividend has said the BODS have been dazzled. Caught like rabbits in the headlights
You would have thought JLL who work very closely with TEF pocketed some decent fees over the years and provided the non recourse loan on City North would either have an in house client or themselves to join in the party ,They will be privvy to the huge profit coming out of this scheme They have watched and been part of the TEF story If they can't sell that to potential buying clients they are asleep on the wheel
Likewise Savills who sat back and batted off various partners before picking M&G and Invesco .They have already undertaken some due diligence and in a privileged position to sellt the story to clients
Maybe they are in on the act by advising TEF and in the clubland of estate agents will be retaining their position as selling a gentsin the various schemes
More fool them and other shaker and movers if they let this opportunity pass by their desks.,They should be all over it like a rash I
The problem for any acceleration in London of course is the difficluty of piecing together sites and the planning system There is very little CBRE can add to that The irony is of course is by the time some of the current schemes work through the system the market might be in a different place again
Maybe TEF have been super clever in alll this and set this up for Greystar to come in or A N other to take a position buying out the founding fathers giving shareholders the opportunity to remain
I dont think the story is over quite yet
Terrace I’ll have an imaginary wager with you as presumably there won’t be a chat forum for Telford. The wager is 12 months from takeover the board will not bear any resemblance to that we see today. All CBRE needed was to bat their eyes and bulging wallets to impress enough for the board to roll over and just say yes whatever the cost in loyalty and giveaways. CBRE will no longer require ( IMO of course) the services of anyone who would have been daft enough to sell at this price working for them. Not astute enough. I would imagine they have everything crossed and being very religious every night just hoping they can get this deal across the line without encountering a pesky counter offer.
Sain...London needs more new modern homes,lots and lots of them with a seemingly endless line of wannabe IPRS renters and TEF recognised this some while ago and have taken giant steps towards derisking their future.What could CBRE possibly bring to the party that will gold plate TEF future.Whilst the company will operate as a separate subsidiary,you know as well as I do that the BOD will no longer be their own masters.
that is a very diplomatic answer.
Well I guess there is nothing wrong in attaching yourself to a global giant in an uncertain future with ambitions,However does that preserve the happy family atmosphere and maintain the many long term external relationships they enjoy who might have to dance to a different tune
Sain...so why are the BODS prepared to let the company go for a fraction over NAV
..surely we are not all being sacrificed for the benefit of the founders.
Well being smart nimble operaters they adapt to changing market conditions . Another major box tick for an investor.
Cast your mind back to the last downturn when in order to get a scheme off the ground they had to gift 50 % of the action away to partners like Pears to keep things sweet .Needs must
This time around just as their peer group are tightening their belts and access to capital is becoming more difficult TEF have worked the oracle and have gone liquid .Strapping themselves tightly into the huge capital reserves of M&G and Invesco .Failing that they can always knock on Greystar's door too
A situation any developer would die for
As every good agent knows "It's not the one you go for its the one you pick up on the way"
These sites for BTR don't arrive alone .They come with a huge smattering of affordable and some higher margin private too-all convenientally paid for by their partners
Some of these sites will be long winded and planning plays where TEF have secured a position for a new cycle
If that isn't the golden goose I don't know what is !
Iftahtisnthe golden goose Idont know waht is
I'm sure the agents are making some good money for BTR. But telford homes have changed their business model due to government policy not because they thought there more money to be made in the BTR sector. TEF utilised BTR during the financial crisis and for a period after to keep ticking over. Margins will be tighter and costs are rising ...
Well the whole of the real estate industry is embracing BTR with a vengeance.TEF represents a Premier League entry at a Conference League price
Only last week at the Shakers and Movers braekfast it was the hot topic of conversation
It would be very surprising if there is someone ought there not recognising this as a golden opportunity and not let it slip quietly by gifting it across the pond
If they do at the next Property Awards rubber chicken dinner CBRE have nailed the Deal of the Year Award
You do get the feeling listening to these politicians that they'll ruin the economy.
Teresa May already tried to see who would blink first, the UK or the EU, and the House Speaker & Parliament completely undermined that approach by taking over control.
Now they're talking about the EU backing down again. Can somebody please shake some sense into them. It's doing far more damage to the Country dragging this out than entering into a deal where either party can give notice to end the deal.
I can only sympathise with those on here who feel hard done. Business is business. The deal seems to be done.
I wish all here and at tefords well, I have no motive other than to look after my family.
Are there any ideas as to where to move the money once the deal is done? Is the UK still the place to invest? Our beloved conservative party have done some serious damage. Brexit and stamp duty increases have really messed things up and things could get worse yet. Would a discussion on the best options moving forward be worthwhile?
Terrace
Suggest you try hitting Xdentibus user name and you will see it has been withdrawn. Suggest also ignore anything he posts as I am convinced he has a different motive.
What is this?
One of TEF house brokers is guiding NAV of 342p for end of March 2020....
350p is neither fair nor reasonable.
Gates are closing.
Edisons were poised to update but not allowed to make any comments
https://www.edisongroup.com/company/telford-homes/2800/
Even that would not have me doing cartwheels
..best if the offer is kicked out on a ten year view.
*£5 is only 1.5 x up to date NAV perfectly sensible for a company with TEF guided ongoing PBT numbers.£3.50 is a fire sale number