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From IC together with Director buying..... The company stepped up a gear last month by at 105p a share to snap up undervalued property assets in a placing that was supported by an array of institutional investors. Conygar now has over £100m of cash on deposit, meaning that its pro-forma net asset value (NAV) is around 140p a share. The board has already looked at £500m of potential deals and is conducting due diligence on two separate deals. Although no deals have yet been announced, Mr Ware's glowing track record in the City means Conygar stands a good chance of working with banks and institutions as they unravel problem property portfolios. SHARE TIP SUMMARY: So with increasing evidence that the commercial property market has hit bottom, and with Mr Ware at the helm, Conygar is sure to attract some compelling deals. The good news is that retail investors can still get in at the ground floor as, despite its strong financial position, the shares are trading at a 16 per cent discount to pro-forma NAV. That looks unwarranted and with the full benefits of the TAP takeover yet to come the shares rate a buy.
Decided to join you, looked like a good opportunity.
I can't make the investor days but am planning to go to the AGM in November. Anyone else planning on going? PS I am waiting to hear venue etc. details.
I wonder if Barrington has spotted it..... Next milestone required now - 50p by year end hopefully ;-)
Shares in Aim-traded property developer and investor Terrace Hill (THG: 23p) have surged this year, but it is only realistic to expect further gains. That's because, following a site sale and forward funding agreement for the company's 1,104-unit student accommodation scheme in Southampton, and the disposal of the majority of its remaining residential assets, the company's balance sheet gearing has been slashed to 30 per cent. This mitigates financial risk, which was the major reason the shares had been previously shunned by investors. Moreover, there is scope for further debt reductions as Terrace Hill has bought out a joint venture partner to take ownership of 47 residential assets worth £5.3m, all of which will be sold off on a piecemeal basis. The focus will be on commercial property developments and food stores in particular. Prospects here look well underpinned. The company has completed two pre-sold and pre-let Sainsbury's food store developments in the north-east of England and a 41,800 sq ft Asda supermarket in Skelton. Importantly, Terrace Hill's chief executive Philip Leech points out that his company is still experiencing good demand from retailers for the right type of store in the right location. The company has close relationships with several large retailers and the pipeline of development projects is "progressing well". This has not been completely lost on investors, since Terrace Hill's shares are up 42 per cent since I advised buying in February at 15.4p. However, trading 25 per cent below Oriel Securities' end-September 2013 net asset value estimate of 31p, the share price discount to book value is still far too wide.
I knew that was going to be painful - took 20 minutes to go through and 6.94 paid - blasted Halifax NT. Gets me every time. Hey ho.
C.Sid, great research thanks.
That should have read heavily tipping THG and INL. Too early and no caffeine yet....
If I find out anything interesting I will post for all. Simon Thompson is heavily tipping this and INL which I am also invested in. So these and TW are my housing/property market recovery shares. If they do anything like TW I will be a very happy bunny. GL
and Barrington, how long have you been in?
It has been a transformational half year for Aim-listed developer, Terrace Hill (THG). The company has for some years been burdened by a highly-geared residential portfolio, the vast majority of which is now sold. It, meanwhile, completed three major supermarket projects and forward sold a student-accommodation scheme in Southampton to Legal & General. The company's book value leapt to 28p a share as the value of these developments, previously held at cost, was finally fed through the income statement. Adjusted book value, which marks development projects to market value, rose more modestly from 28.3p to 29.2p. But neither figure reflects the improvement in the quality of the balance sheet, which now holds just £17.9m of net debt (including share of joint-venture borrowings) - down from £85.7m in September. This was mainly the result of the sale of a £68m portfolio of homes to the housing association, Places for People. Encouragingly, these results contained none of the land value write-downs that have dogged Terrace Hill's results since 2008. "We're very comfortable with our carrying values," says chief executive Philip Leech. With these legacy issues finally resolved, the company is now free to focus on further supermarket developments - it has one scheme in the planning process and a number of others in the pipeline - as well as further opportunities in the buoyant student housing and leisure sectors. Broker Oriel Securities expects adjusted book value of 31p at the year-end. Terrace Hill's shares have doubled over the past six months to reflect the company's return to financial health. Yet they still trade 30 per cent below adjusted book value, which has scope to grow as the company signs up tenants for its office and leisure schemes. Buy.
Having trebled pre-tax profits to £3m in the second half of 2012, underpinned by land sales, the company has just reported buoyant trading in the first five months of 2013. Moreover, a number of acquisitions have been agreed to ramp up the housebuilding operation including a 40-unit site near St Albans with a gross development value (GDV) of £10.2m; and a new 155 unit scheme on a one acre brownfield site in Woolwich with a GDV of £32m. Terms have also been agreed on three sites in Buckinghamshire to build 220 units, and planning permission has been granted for a 101 home scheme on the southern part of St John's Hospital, Chelmsford. The GDV of that scheme alone is £34m. Inland confirms that it has now achieved housebuilding sales of £9.1m since the start of 2013. To put that into perspective, Inland sold 15 residential units in the second half of 2012 for £3.1m and analyst Duncan Hall at broker FinnCap only expected 25 completions in the six months to June 2013, generating housebuilding revenues of £5m and a profit of £1m. Those estimates are under review, but I think you get the picture. For the financial year to June 2014, finnCap had previously predicted 70 residential completions to generate revenues of £15.4m and profits of £3.4m. I would be astonished if those estimates were not beaten especially as Inland raised £4.9m of new funds through a placing at 27p a share on 24 May to fund the acquisition of more sites for development. Chief executive Stephen Wicks confirms that Inland is seeing strong interest from major housebuilders for undeveloped plots. In fact, it is awaiting offers on 76 plots on one site alone. Without factoring in any of the property deals outlined above, Inland has a land bank of 1,931 plots, including 516 at the Drayton Garden Village joint venture in West London. The book value of inventory is £36m and there is a further £8.8m of investment property, so there is substantial asset backing. These valuations are likely to have risen significantly once you mark holdings to market value and factor in the strong house price growth in London and the south east this year. So, with full-year profits to end June 2013 set to rise by at least 150 per cent to £4m, and the shares trading in line with a very conservative book value of 28.2p, which doesn't recognise the 5p a share of net profits to come from Drayton Gardens, I continue to rate Inland shares - which have so far risen by around 20 per cent since I first advised buying in February ('Bargain shares for 2013', 8 February 2013) - a solid buy at 29.5p.
today, looks really interesting...
today, looks a really interesting SME.
in today, decided it was time to get on to this following my research so sold all my RDSA and did a swap. Divi is better here.
Chris, I have mine...
term
can we have some more of that type of news please.....
needs more news to get out of that trading range, like another positive update on production from Sapinhoá field. That's what shifted the last range.