rick24
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Post by rick24 on Nov 1, 2022 14:42:32 GMT
I have just received an email to say they are unilaterally changing the terms of the shareholder agreement to enable them to issue the new shares. Surely this is open to legal challenge?
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Post by overthehill on Nov 1, 2022 14:45:26 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.
Their fee structure, poor rental and third party management, poor purchases, suspect predictions.
I imagine they will take whatever they can. They are trying to increase the equity roughly by 50% on average so if you don't invest and it is fully subscribed then it amounts to a 33% dilution. Given recent equity raises as low as 5% and complete disinterest in huge discounts I wouldn't panic.
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Post by overthehill on Nov 1, 2022 14:57:16 GMT
I have just received an email to say they are unilaterally changing the terms of the shareholder agreement to enable them to issue the new shares. Surely this is open to legal challenge?
Wasting their time, they need to sell units to reduce the mortgage. The fee changes back in time were craftily presented, I should have got out then, can't remember if it was possible at par.
Mortgages and re-mortgages seem to be another issue which may or may not be purely due to recent increases.
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Post by scepticalinvestor on Nov 1, 2022 15:48:44 GMT
Fat lot of good it'll do but I'm going to put in a complaint anyways and take it to the FOS. And a review on Trustpilot and Google telling people about the forced dilution in shareholding and the one-way amendment in terms to make it happen.
Going by the last time I complained (during the fee change), the FOS won't care a jot but at least PP will have to address the complaint.
They need to sell properties but doing that will mean the cash-cow is slayed.
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IFISAcava
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Post by IFISAcava on Nov 1, 2022 17:25:27 GMT
I have just received an email to say they are unilaterally changing the terms of the shareholder agreement to enable them to issue the new shares. Surely this is open to legal challenge?
Wasting their time, they need to sell units to reduce the mortgage. The fee changes back in time were craftily presented, I should have got out then, can't remember if it was possible at par.
Mortgages and re-mortgages seem to be another issue which may or may not be purely due to recent increases.
It wasn't, you had to sell at the (enhanced) discounts. I did only a partial sellout but in retrospect keeping anything in was a mistake, as plenty of people suggested at the time.
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mrk
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Post by mrk on Nov 1, 2022 17:36:25 GMT
Anyone understands how they calculated the Net Cash Deficit they're showing for each property exactly? It doesn't seem to match what's shown in the Rental Income Breakdown. Take Colchester, Essex, CO1 for example (it's a public page so I don't think this is confidential): under Investment update as of 31 October 2022 they say This property has a net cash deficit of £70,829. But under Rental Income Breakdown in the 9 months to 30 September 2022 it says Annual Surplus / Deficit -£1,553. |
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IFISAcava
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Post by IFISAcava on Nov 1, 2022 17:45:47 GMT
I can't help thinking that taking up the additional equity to avoid the dilution is probably the sensible thing to do, as all the properties are going to be sold fairly soon anyway. Given the discount the new equity is being issued at, and the avoidance of a 10-12% dilution, there seems quite a buffer against losing the equity via property value decreases - and valuations based on block disposals are anyway lower than the individual sales route.
I will probably subscribe the extra money, and hope to get out with less of a loss that way in 2-3 years
Will still have been a rubbish investment - realised and projected capital losses have outweighed dividends as things stand, and that's before the property market goes into reverse!
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Post by overthehill on Nov 1, 2022 17:55:49 GMT
Anyone understands how they calculated the Net Cash Deficit they're showing for each property exactly? It doesn't seem to match what's shown in the Rental Income Breakdown. Take Colchester, Essex, CO1 for example (it's a public page so I don't think this is confidential): under Investment update as of 31 October 2022 they say This property has a net cash deficit of £70,829. But under Rental Income Breakdown in the 9 months to 30 September 2022 it says Annual Surplus / Deficit -£1,553.
It says net cash surplus of 2672 at the bottom in the share valuation but it says nov 2021. I think the stats haven't been updated properly. Certainly nothing in the rental income to explain that massive jump in deficit. I've never tried to dissect and verify the stats but they have tried to make them more transparent.
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mrk
Posts: 807
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Post by mrk on Nov 1, 2022 17:58:00 GMT
Anyone understands how they calculated the Net Cash Deficit they're showing for each property exactly? It doesn't seem to match what's shown in the Rental Income Breakdown. Take Colchester, Essex, CO1 for example (it's a public page so I don't think this is confidential): under Investment update as of 31 October 2022 they say This property has a net cash deficit of £70,829. But under Rental Income Breakdown in the 9 months to 30 September 2022 it says Annual Surplus / Deficit -£1,553.
It says net cash surplus of 2672 at the bottom in the share valuation but it says nov 2021. I think the stats haven't been updated properly. Certainly nothing in the rental income to explain that massive jump in deficit. I've never tried to dissect and verify the stats but they have tried to make them more transparent.
I'm thinking maybe the deficit is a future projection, taking into account increased mortgage rates? But I don't see it explained anywhere.
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Post by overthehill on Nov 1, 2022 18:12:31 GMT
It says net cash surplus of 2672 at the bottom in the share valuation but it says nov 2021. I think the stats haven't been updated properly. Certainly nothing in the rental income to explain that massive jump in deficit. I've never tried to dissect and verify the stats but they have tried to make them more transparent.
I'm thinking maybe the deficit is a future projection, taking into account increased mortgage rates? But I don't see it explained anywhere.
Doubt it. Check some of the other properties. They have made a mess of it. Has to tie in with the share valuation and rental sections at the bottom or you're talking about undocumented costs.
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Post by walter on Nov 2, 2022 20:14:05 GMT
I am no legal expert ..but I do work with a few and I am fairly sure that you cannot retrospectively change the terms of a contract unless you have a clause saying you can. I have emailed PP to ask the to point out which clause allows them to amend the terms of the contract.
Not happy with the actions and tone of the email
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Post by scepticalinvestor on Nov 3, 2022 10:02:12 GMT
The only thing Property Partner are looking to do now is keep their gravy-train running, and that's the only reason for this equity fundraise. The rental market has been on fire the past year and given their piss-poor track record I would not be surprised if they still manage to have voids and much lower-than-market rents. Their retail model is bust. Look at their Trustpilot reviews, they aren't going to be attracting any new retail investors uk.trustpilot.com/review/www.propertypartner.co |
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Post by overthehill on Nov 3, 2022 10:25:01 GMT
The only thing Property Partner are looking to do now is keep their gravy-train running, and that's the only reason for this equity fundraise. The rental market has been on fire the past year and given their piss-poor track record I would not be surprised if they still manage to have voids and much lower-than-market rents. Their retail model is bust. Look at their Trustpilot reviews, they aren't going to be attracting any new retail investors uk.trustpilot.com/review/www.propertypartner.co
It's a tidy return (albeit reduced since the buyout) to keep a website full of stats up and running. I don't even see a lot of voids, low rentals maybe but even they look eye watering to me ! It's probably overheads and overpaying for lack lustre service and some poor decisions. The portfolio wide mortgage problem seems to have dealt a fatal blow. They've never really recovered from the cladding scandal. They need to dump the junk and rebuild. It's been the constant excuses for slowing down the sales processes which put me totally off them, they have basically missed a huge window of selling opportunity, now it's closed. They're going to make good money running down the portfolio, maybe they should stick to 2nd charge development loans like Capital Stackers and others do.
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beh
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Post by beh on Nov 3, 2022 12:36:56 GMT
Cladding issue is unlucky and accounts for most of the worst performing properties I hold.
I think if they'd managed to sell a few more this year I'd probably be willing to put some of that into the equity raises but I'm reluctant to invest any new cash. Seems to be several that don't look too far off, often just waiting on a single tenant to leave.
Any thoughts on the above that was seemingly pasted into most of the updates a while ago? The latest "anniversary" on a property I have is March 2024. A bit early/optimistic for them to be thinking beyond that? That a large proportion of them might be sold before then.
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Post by Ace on Nov 3, 2022 14:03:52 GMT
The only thing Property Partner are looking to do now is keep their gravy-train running, and that's the only reason for this equity fundraise. The rental market has been on fire the past year and given their piss-poor track record I would not be surprised if they still manage to have voids and much lower-than-market rents. Their retail model is bust. Look at their Trustpilot reviews, they aren't going to be attracting any new retail investors uk.trustpilot.com/review/www.propertypartner.co
It's a tidy return (albeit reduced since the buyout) to keep a website full of stats up and running. I don't even see a lot of voids, low rentals maybe but even they look eye watering to me ! It's probably overheads and overpaying for lack lustre service and some poor decisions. The portfolio wide mortgage problem seems to have dealt a fatal blow. They've never really recovered from the cladding scandal. They need to dump the junk and rebuild. It's been the constant excuses for slowing down the sales processes which put me totally off them, they have basically missed a huge window of selling opportunity, now it's closed. They're going to make good money running down the portfolio, maybe they should stick to 2nd charge development loans like Capital Stackers and others do.
Capitalstackers do specialise in 2nd charge lending, but they do also have some 1st charges.
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