Problems at T* G***

Also Burns St, so they may not be the last....

Anyone got any ideas what it might be. I'm in Burns Street, not T* G***, but I am in Fairchild House.

PBSA is starting to look a bit sick. They charge enough in fees...

This is the news on TG. Not good but far from terrible.

Further to our communication on 4 July regarding a property management issue at T* G***n, Bangor and suspension of the property, we are writing to report that the situation has been clarified.
The dividend will recommence on 5 September 2019 at a reduced level of £169,000 per annum, representing a reduction in the annual dividend yield from 7.36% to 6.60%, based on the latest share valuation.
Trading in the shares will re-open along with the rest of the market at the end of the current close period, today at 11am.
T* G***n, Bangor was acquired with a legacy property management agent in place on a long term contract. As part of our acquisition at an attractive price, we were obliged to retain the agent and adopt the existing agreement, including a termination cost.
We had previously been happy with the performance of the managing agent but more recently became concerned by a drop in lettings and requests from them to lower our asking rents. As a result, we conducted a detailed inspection of the property and found that some rooms were not being adequately maintained. We have also concluded that the agent’s marketing strategy for the rooms was inadequate.
The majority of our PBSA portfolio is managed by C**. They are a specialist PBSA management company with national coverage and a suite of institutional investor clients, and an existing presence in Bangor. C** has now inspected T* G***n and have reported that the block remains an attractive option for students in the area. They have advised that we can maintain full occupancy at our previous level of rent for the academic year beginning in September 2019, by carrying out required maintenance and marketing the rooms through an appropriate platform.
We have now terminated the contract with the previous manager and appointed C** to manage the block. The cost of terminating the contract was £25,000, which we believe represents good value for the long term performance of the building, but is a significant cost in the context of a monthly dividend of £15,000. This, in addition to the cost of carrying out essential maintenance in order to re-let the rooms, has required us to temporarily suspend the dividend and reinstate it at a reduced level, to cover these costs and ensure that the SPV rebuilds provisions for unexpected future costs.

Burns Street.....the council tax bill 'took them by surprise' ??