|
Post by overthehill on Dec 13, 2022 18:05:43 GMT
I had three properties with an equity raise, two of which have now been cancelled! So I have a simple decision whether to invest in the remaining equity raise which is now over 50% I feel like I should match my current investment as it's a small portion of my overall portfolio so my holding isn't diluted and hope for proceeds from flat sales, what are others thinking? Given their track record over the last 3 years and their regular changing of the rules to suit their own ends, I’m not putting another penny into PP. Why send good money after bad?
I've no idea how any of the properties got over 50%, there were 3 out of 21. Their emails have been PR wonders to behold, classic marketing and sales, perception over reality. My property sneaked over the 10% bar? I want them to prosper just so I can get my money back. They need to clear out the dross which was bought by the ex-RBS ex-property partner property director
|
|
|
Post by scepticalinvestor on Dec 14, 2022 12:43:47 GMT
I had three properties with an equity raise, two of which have now been cancelled! So I have a simple decision whether to invest in the remaining equity raise which is now over 50% I feel like I should match my current investment as it's a small portion of my overall portfolio so my holding isn't diluted and hope for proceeds from flat sales, what are others thinking? Given their track record over the last 3 years and their regular changing of the rules to suit their own ends, I’m not putting another penny into PP. Why send good money after bad?Exactly my thoughts. PP's model is bust and not coming back. All this fundraise is meant to do is keep the properties on their book for longer and keep PP's income streams alive. Unnecessary lease extensions, expensive EPC upgrade works, gold-plated maintenance work, etc.
|
|
SteveT
Member of DD Central
Posts: 6,873
Likes: 7,918
|
Post by SteveT on Dec 14, 2022 14:01:26 GMT
Given their track record over the last 3 years and their regular changing of the rules to suit their own ends, I’m not putting another penny into PP. Why send good money after bad?Exactly my thoughts. PP's model is bust and not coming back. All this fundraise is meant to do is keep the properties on their book for longer and keep PP's income streams alive. Unnecessary lease extensions, expensive EPC upgrade works, gold-plated maintenance work, etc. Also to disguise the extent of the portfolio problems by trying to avoid / delay sales of properties at a capital loss, which will go down like a lead balloon (but is more or less inevitable)
|
|
|
Post by overthehill on Dec 15, 2022 18:27:10 GMT
Better to provide significant direct investment in the marketplace.
|
|
rick24
Member of DD Central
Posts: 244
Likes: 138
|
Post by rick24 on Dec 15, 2022 20:14:10 GMT
An interesting development although I haven't understood the full implications yet. Good or bad for investors who want to sell?
|
|
|
Post by drg on Dec 15, 2022 20:28:17 GMT
Good for investors who want to sell on the secondary market, bad for investors who want block listings to fail so that the value available by selling all units individually is unlocked. It'll be interesting to see how much it moves secondary market prices over the 3 months they're doing it for.
|
|
rick24
Member of DD Central
Posts: 244
Likes: 138
|
Post by rick24 on Dec 15, 2022 21:15:45 GMT
It suggests that Better think there is enough value in the properties to justify their buying at the discounted 30-day trading average, which I imagine is the price that will apply.
|
|
SteveT
Member of DD Central
Posts: 6,873
Likes: 7,918
|
Post by SteveT on Dec 16, 2022 13:13:38 GMT
Good for investors who want to sell on the secondary market, bad for investors who want block listings to fail so that the value available by selling all units individually is unlocked. It'll be interesting to see how much it moves secondary market prices over the 3 months they're doing it for. I'm not sure that's right. I think I read that they're only investing in block listings where a majority has already voted to stay invested (ie. buying up some of the remaining shares offered for sale)
|
|
ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 10,883
Likes: 11,106
|
Post by ilmoro on Dec 16, 2022 13:22:34 GMT
Good for investors who want to sell on the secondary market, bad for investors who want block listings to fail so that the value available by selling all units individually is unlocked. It'll be interesting to see how much it moves secondary market prices over the 3 months they're doing it for. I'm not sure that's right. I think I read that they're only investing in block listings where a majority has already voted to stay invested (ie. buying up some of the remaining shares offered for sale) That was my understanding. Also it's only certain blocklistings were failure would result in individual flat sales, quite a few would result in the whole property being sold at a lower valuation.
|
|
|
Post by drg on Dec 16, 2022 13:37:34 GMT
Good for investors who want to sell on the secondary market, bad for investors who want block listings to fail so that the value available by selling all units individually is unlocked. It'll be interesting to see how much it moves secondary market prices over the 3 months they're doing it for. I'm not sure that's right. I think I read that they're only investing in block listings where a majority has already voted to stay invested (ie. buying up some of the remaining shares offered for sale) There are properties for which a 20-25% premium (or even larger sometimes) on the block listing price would be available if PP sold all the units individually. It's so large because of the mortgage gearing. However, in the 5-year process, there is no option for investors to say "yes please, could I please have the 20-25% extra return over block listing value over the 2-3 years it takes to sell the units." We have to vote to either sell at the heavily discounted investment value price or vote to hold. There are therefore likely to be many investors who are voting to hold not because they actually want to hold, but because they don't want to sell at such a large discount to what should be achievable. This means that it's basically always the case that less than 50% of people vote to sell and it will therefore basically always be the case that Better can buy up to 10% of the shares. This is bad news for investors who are voting to hold but hoping the block listing fails or who are voting to sell but are hoping the block listing fails and they get to make 20-25% higher returns by having PP sell the units individually. Of course, it is good news for investors who don't want properties to be sold or who just want out now at investment value.
|
|
|
Post by drg on Dec 16, 2022 13:44:01 GMT
I'm not sure that's right. I think I read that they're only investing in block listings where a majority has already voted to stay invested (ie. buying up some of the remaining shares offered for sale) That was my understanding. Also it's only certain blocklistings were failure would result in individual flat sales, quite a few would result in the whole property being sold at a lower valuation. There are still some exceptions but I think most multi-unit properties are now listed with their exit method being to sell units individually.
|
|
|
Post by overthehill on Apr 30, 2024 16:13:54 GMT
Latest quarterly update out today if anyone is interested, available from website with no login.
Has anyone seen any mention of bank interest for all this cash sitting idle once mortgage is paid off and waiting for the last unit of many to be sold ? I don't see anything in the Rental Income tab, some opaqueness in their otherwise transparent data.
|
|
|
Post by drg on Apr 30, 2024 21:00:10 GMT
They are apparently unable to put the money in an interest bearing account due to the structure of the SPVs. I don't understand why they can't but I'm sure there is a legit reason why it is at least difficult or they'd just do it. Obviously whatever this legit reason is will be of little consolation to investors who have large sums of cash sitting under their control earning zero interest.
|
|