Member Info for zccax77

Those are piddlers. Intu is too big to fail though, plus it generates a lot of cash and has debt maturities way into 2024. Enough time to pay down some debt and sell assets. Where does Whittaker fit in and when does he bail it out? He owns 30% of this.

Not likely to go back up to 4000 is it when you have had a 43% dilution.

Not until the H2 results. Expect a bloodbath there.

Went from 770 to 660, I think another shorter opened a position. How many frse250 shares are as volatile as this?

Where has the sage office manager gone. Still hoping for a multi baggger?

Those capex projects have 5-7% ROE, but then they do deals like Cale street. Does not compute.

This shopping centres are third rate sh*t holes. You canny compare that to intu’s tier 2 centres.

The shorts have not moved in the last few months. You guys talk like this sp is still at 400p, this is trading at 90p so there is value here even after doing more onerous deals with Cale st. I wonder if their FCF will hold up and don’t know why they are spending 450m over the next 3 years on capex when they should be paying down debts, idiot management. I wonder who will bid for this next and when they will get the 600m in from their Spanish sales

Intu got a good deal in this arrangement. The discount compared to NAV on their sp says so. Surprised cale st went ahead with the deal when there are other tertiary assets out there yielding 10%+ thought not sure those high yields will hold up. I am still of the opinion another offer will materialize for the company, mainly because they are a motivated seller. If not then they need to get rid of debs and replace with primark. Primark have a margin of 12% compared to 2% for ASOS, bricks and mortar the likes of Intu army’s dead yet.

They will no longer be fast growing due to capital constraints,. Plus you have to factor in each new branch costs them £3.5-4m to fit out, compared to RBS/Lloyds £0.5m-0.7m, with those types of numbers their growth will be limited.

Some of these HF’s will have long term shorts. They know how challenging the market is right now as well as the dismal numbers which will be revealed in the half year numbers plus MTRO is no unicorn and has its goodwill obliterated by the press. But that does not matter some people think this is a multi bagger.

Better look elsewhere. This share will disappoint you.

Buying RMBS is no different then lending to people buying houses and supporting the housing market. The money has been used in the spirit of the scheme. Just the shorters constantly trying to push out negative stories in the media to drive down the price. I would love it if Hill got his band of billionaires together and took it private at £35, the shorters would be royally up sh*t creep.

Who knows. One thing is for certain MTRO is not a LTH based on it's volatility. I really do not understand why with so few PI's especially after the placement this has not been held privately.

https://www.bisnow.com/london/news/retail/the-only-investor-to-buy-a-shopping-centre-this-year-explains-why-they-took-the-plunge-99075

There has essentially only been one proper shopping centre deal in the UK this year. One. A couple of small development opportunities changed hands in Q1. But Cale Street’s purchase of a 50% stake in Intu Derby for £186M in April is basically the only game in town for the moribund sector. Investors have steered clear because of the uncertainty over rental income created by the regular flow of tenant administrations and company voluntary agreements. Just this week, restaurant chain Jamie’s Italian went into administration, closing 20 stores, and M&S indicated it could close up to 150 stores over the next few years. If you don’t know what the income for a centre is going to be, it is very hard to work out what you should pay for it.

So what made Cale Street invest where others fear to tread? Cale Street founding partner Wilson Lee explained the firm’s thinking at Bisnow's London Capital Markets Review event. It came down to careful underwriting, creative deal structuring, lack of competition and an acceptance that investors in retail are going to have to change their lazy ways, he said. Cale Street is an independent investment firm that principally invests on behalf of the Kuwait Investment Authority, the fund that manages the Gulf state’s oil wealth. As such, it considers itself a “rifle shot” investor that looks to do a small number of large deals. It can provide funds across the capital stack, from joint-venture equity, to preferred equity, mezzanine debt or senior debt. Its deal with Intu saw it take a 50% stake in a 1.3M SF centre with net rental income of £25M in a deal that represented a net initial yield of 6.6%. “It’s a 1M SF, dominant centre, not a well-known town and not a flashy centre but it is very well occupied, with some good tenants, the tenants are happy and occupancy costs are low,” Lee said. “For instance the recent CVA of Debenhams — one of our anchor stores is Debenhams — that store was categorised as a class one store, which means the rent stays where it is. And we underwrote that, believe me, we looked at this deal many times and said, why are we buying retail right now, why are we buying a centre with a Debenhams when they are clearly in trouble? So you need to underwrite very carefully, and you need to have the right partner that is going to manage the centre well.” Lee said because of that uncertainty, there was less competition for the deal, and the yield looked good when compared not just with historical retail values, which could fall further, but compared with other asset classes.

“There will be more tenant defaults and centres shutting down so you have to be cautious, but I don’t believe it's a complete no-fly zone, and right now a lot of people are staying away from it, which means there are more opportunities,” he said. “Right now in commercial real estate most asset classe

I am not sure why Royal London keep on bringing this up, they own 0.03% of the ex-rights shares. Maybe one of the heavy hitter II's should buy them out and tell them to feck off. I am sure they have bigger fish to fry than constantly bleeting on about MTRO.

Looks like Goldman revised their target price to 800p. Crooks, one day they will get it right.

Sain, how is the debt markets doing for retail property? I see NRR have JV’d for some assets at a knockdown yield of almost 10%, do you know whether they managed to get bank financing?

I would have understood if they raised the money in February before letting the share price crash, but they are paying a very high price for a poor outcome such as the mini bank run. A 5 year old could have seen that coming. The advisors are there to advise, but clearly not in this case.

It's been 6 months since the last bid for INTU, question is when will the next bid materialise and at what price, will it be from the US, Canada, Asia or the Middle East? Bear in mind INTU have some top tier assets, and we are still in a very low interest rate environment in Europe.