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Post by scepticalinvestor on May 26, 2021 11:28:08 GMT
This is what bugs me the most. Lots of people involved are laughing all the way to the bank. Someone more sceptical than me would assume that they just want to run down the business as slowly as they can. With AUM being paid or accrued on properties that aren't making much money, there's no risk of them not being paid at the end.
"Everyone in the food chain -PP, property management, estate agents, rental agents, valuers, HMRC- are doing very well from this platform except the investors."
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Post by overthehill on Jun 30, 2022 13:46:33 GMT
The last quarterly portfolio update was sent out on 31 March 2022 so the next one should be today. The last email from them said the next quarterly portfolio update will be on the 31 July 2022 but based on the calendar quarter ending the 30 June 2022. Work that one out, so quarterly updates according to PP is every 4 months sometimes... I've basically given up caring, apart from getting my money out.
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Post by overthehill on Jul 29, 2022 17:33:30 GMT
July 2022 Portfolio Update (PP)
"97 properties / units to be sold as soon as possible, subject to vacant possession and ensuring we do not harm the market by selling too many units in the same block at once"
How do you harm a property market with a chronic shortage of housing just about everywhere ? Assuming what you're selling is good and bought for the right price. PPs fees are based on the total portfolio value, not a lot of incentive to sell expeditiously.
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SteveT
Member of DD Central
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Post by SteveT on Jul 30, 2022 6:03:39 GMT
July 2022 Portfolio Update (PP)
"97 properties / units to be sold as soon as possible, subject to vacant possession and ensuring we do not harm the market by selling too many units in the same block at once"
How do you harm a property market with a chronic shortage of housing just about everywhere ? Assuming what you're selling is good and bought for the right price. PPs fees are based on the total portfolio value, not a lot of incentive to sell expeditiously. Because trying to sell 4 flats (say) in the same block at the same time means all 4 will likely sell for less than if just 1 is listed at a time (hopefully then setting a decent selling price benchmark for the next). It's nothing to do with the wider UK property market, simply supply vs demand very locally. I'm no fan of PP's approach generally, but in this they're correct.
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Post by overthehill on Oct 31, 2022 19:45:54 GMT
31oct2022 update. Speechless. Except to say they are on target to make my total income £1 after 6 years.
And just in, they are looking to raise millions in equity on 21 existing properties. Investors don't want to invest or keep at 5 year exit, they don't even want to invest at discounts up to 41% but they might just invest in ... <server down>
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Post by overthehill on Nov 1, 2022 9:51:28 GMT
31oct2022 update. Speechless. Except to say they are on target to make my total income £1 after 6 years.
And just in, they are looking to raise millions in equity on 21 existing properties Investors don't want to invest or keep at 5 year exit, they don't even want to invest at discounts up to 41% but they might just invest in ... <server down>
Did I mention share dilution if you don't invest in any of the 21 properties you already hold, that is how equity raises work but still a cunning plan Blackadder would be proud of if you think it through! I only see lead balloons so probably won't hurt too much.
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Post by c0nfuzed on Nov 1, 2022 11:16:44 GMT
It's a bloody disgrace. One of my properties affected by the Equity Raise is in Brighton and I know first hand that prices have rocketed here over the last 5 years! Another one has already reached it's 5 year anniversary and is being sold. How can they legally dilute my investment now?
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beh
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Post by beh on Nov 1, 2022 11:48:07 GMT
It is slightly baffling, seems unlikely they'll raise a worthwhile amount? Good money after bad perhaps.
Getting to the point where I'd almost just prefer they had a fire sale, accept any losses and move on.
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daveb4
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Post by daveb4 on Nov 1, 2022 12:07:04 GMT
I am awaiting a call back to discuss as could not get through on the phone.
What if fund raise does not acquire anything or minimal amount? Bearing in mind the present 14 of my 18 properties are sitting on losses with 4 going through fund raise what are they contributing to the horrendous position? and finally how has a property portfolio like this managed to have most of their properties with an overall minimal percentage of dividends over the course of last 6 odd years and sitting on losses which are exaggerated further if you sell on secondary market.
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Post by greatboo on Nov 1, 2022 12:08:14 GMT
The suspension of dividends was disappointing but predictable. Though it's hard to see when interest rates will ever be low enough for dividends to re-start.
Didn't predict the equity fundraise though. Can't raise much enthusiasm for paying out more money to keep the same percentage of a bad investment that I already had, with no guarantee it won't be diluted further in future. Who's going to want to put more money into this?
Only thing I would even remotely consider is a couple of "Fire Regulations" properties that have already lost 70% of their value - but even then I'm not keen.
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SteveT
Member of DD Central
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Post by SteveT on Nov 1, 2022 13:04:07 GMT
It's a bloody disgrace. One of my properties affected by the Equity Raise is in Brighton and I know first hand that prices have rocketed here over the last 5 years! Another one has already reached it's 5 year anniversary and is being sold. How can they legally dilute my investment now? Because you don’t own a share of a property, you own shares in a company (SPV) that owns a property as an asset and has a debt (mortgage) against it. The equity raise is no different to a company launching a rights issue.
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Post by c0nfuzed on Nov 1, 2022 14:00:12 GMT
I understand what you're saying, but to try to raise equity for a property that is already in the process of being sold seems crazy. And if I don't contribute my investment is diluted further and losses magnified. Properly managed I'm fairly sure none of the affected properties would need further funding - the rental should be paying the increased mortgage fairly comfortably.
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SteveT
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Post by SteveT on Nov 1, 2022 14:10:11 GMT
I understand what you're saying, but to try to raise equity for a property that is already in the process of being sold seems crazy. And if I don't contribute my investment is diluted further and losses magnified. Properly managed I'm fairly sure none of the affected properties would need further funding - the rental should be paying the increased mortgage fairly comfortably. If their financial situation is as healthy as you say, then presumably it could make sense for you to take up your share of the equity being raised to maintain your % shareholding.
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Post by overthehill on Nov 1, 2022 14:26:34 GMT
I understand what you're saying, but to try to raise equity for a property that is already in the process of being sold seems crazy. And if I don't contribute my investment is diluted further and losses magnified. Properly managed I'm fairly sure none of the affected properties would need further funding - the rental should be paying the increased mortgage fairly comfortably. .
They're not getting any more of my money, just get on and sell them for a loss. Every mortgaged property has 0% dividend now, yep. Poor property purchases are hard to sell, the property director left and left investors with a large amount of junk, hard to sell or needing serious refurbishment and renovation. The portfolio performance beggars belief given recent house price rises and shortage of homes.
What people didn't appreciate was the long drawn out process to sell these multi-unit properties, 10, 20, 30, 40 units, whilst PP continue to earn very clever structured fees unrelated to performance for extensive periods of time. All the original multi unit properties were marketed as will be sold as a complete block like PP bought them, then they changed that to selling units individually will increase your return, not mine.
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Post by overthehill on Nov 1, 2022 14:38:01 GMT
The suspension of dividends was disappointing but predictable. Though it's hard to see when interest rates will ever be low enough for dividends to re-start. Didn't predict the equity fundraise though. Can't raise much enthusiasm for paying out more money to keep the same percentage of a bad investment that I already had, with no guarantee it won't be diluted further in future. Who's going to want to put more money into this? Only thing I would even remotely consider is a couple of "Fire Regulations" properties that have already lost 70% of their value - but even then I'm not keen.
For balance I have to say their development bonds so far seem to have returned capital and interest (full interest, not sure?), are they still offering these, never seen a recent email? I'm not interested in 2nd charge development loans anyway.
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