ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 10,846
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Post by ilmoro on Jan 31, 2023 14:25:54 GMT
Everytime I get an update my portfolio value takes a hit. This statement is still holding true with the exception of the recent untested new vacant possession valuation feature. Upgrade a student property because it is basically unrentable, hit, sell a property and receive final payout, hit. I still stand by my prediction that I will exit with zero profit after 5-6-7 years, however long it takes.
Update tomorrow, what dividends doing !
Another drop but hey looks like 3 dividend payers for me. Woohoo!!!
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rick24
Member of DD Central
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Post by rick24 on Feb 3, 2023 13:57:04 GMT
I was looking forward to greater liquidity this morning...but all my properties are suspended from trading. So much for that.
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Post by c0nfuzed on Feb 7, 2023 8:45:57 GMT
What the hell is going on with properties that didn't meet their equity raise?
Apparently either a forced cheap sale via auction even though it's reached the 5 year anniversary or a forced equity fundraise at about 50% of the investment value (who came up with this figure?). Presumably so their parent company can pick apart the bones and score some cheap investments?
How can this even be legal?
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Post by scepticalinvestor on Feb 8, 2023 10:50:56 GMT
Was there an email? I have a few properties that didn't meet the equity fundraise targets but haven't received any communication about what's happening to them.
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Post by c0nfuzed on Feb 11, 2023 10:17:34 GMT
Yep, email received on the 1st Feb for one of my properties that should have started it's 5 year anniversary process on the same day. I'm pretty peeved!
"Hello XXXXX,
You are a shareholder in XXXXX, which did not successfully raise capital in the Nov-Dec 2022 Equity Fundraise.
XXXX was due to launch its 5-year anniversary process on 1 February 2023. The property's financial situation necessitates a deferral of one month to undertake the shareholder vote described below. The 5-year anniversary process is therefore scheduled for 1 March 2023.
This property's financial position is unsustainable, particularly due to high mortgage interest rates. As such, shareholders now have a choice between the following two options:
1. Equity Fundraise of £132,000 at a share price of £0.45 to strengthen its financial position while units are sold in an orderly manner to maximise value; or
2. Auction Sale: units to be sold at auction as soon as possible; in discussions with auction houses, we have been advised that auction sales typically result in approximately 20% discount to fair value." In the property's Latest Update, we provide an illustrative comparison of these two options."
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Post by overthehill on Feb 11, 2023 14:08:44 GMT
Yep, email received on the 1st Feb for one of my properties that should have started it's 5 year anniversary process on the same day. I'm pretty peeved! "Hello XXXXX, You are a shareholder in XXXXX, which did not successfully raise capital in the Nov-Dec 2022 Equity Fundraise. XXXX was due to launch its 5-year anniversary process on 1 February 2023. The property's financial situation necessitates a deferral of one month to undertake the shareholder vote described below. The 5-year anniversary process is therefore scheduled for 1 March 2023. This property's financial position is unsustainable, particularly due to high mortgage interest rates. As such, shareholders now have a choice between the following two options: 1. Equity Fundraise of £132,000 at a share price of £0.45 to strengthen its financial position while units are sold in an orderly manner to maximise value; or 2. Auction Sale: units to be sold at auction as soon as possible; in discussions with auction houses, we have been advised that auction sales typically result in approximately 20% discount to fair value." In the property's Latest Update, we provide an illustrative comparison of these two options." Selling off the dross while the existing and new proprietors accept zero retrospective responsibility or financial pain.
I take it the fund raise will be offered at a discount again penalising non-participant shareholders. Getting out at 20% would be a result in my book if you look at the discounts still available on the active properties with zero dividend. The variable rate mortgages up to 6% to which they are culpable and seem helpless to address are just a joke. Don't be fooled by Better promising to normalise the market conditions by injecting money. How would you verify what or how much they are buying? Then they concoct a new mutual fund to invest in pound for pound to buy up all these discounted properties. It occurs to me that if these discounted properties are such good investments why don't Better buy them and set the market straight.
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Post by scepticalinvestor on Feb 12, 2023 22:08:33 GMT
I don't get it, how hard can it be for a property management firm to sell a flat the normal way without going down the auction route? What difference is a few months going to make. Given the past failed sales, I'd ignore the supposed market value being used by PP. Yep, email received on the 1st Feb for one of my properties that should have started it's 5 year anniversary process on the same day. I'm pretty peeved! "Hello XXXXX, You are a shareholder in XXXXX, which did not successfully raise capital in the Nov-Dec 2022 Equity Fundraise. XXXX was due to launch its 5-year anniversary process on 1 February 2023. The property's financial situation necessitates a deferral of one month to undertake the shareholder vote described below. The 5-year anniversary process is therefore scheduled for 1 March 2023. This property's financial position is unsustainable, particularly due to high mortgage interest rates. As such, shareholders now have a choice between the following two options: 1. Equity Fundraise of £132,000 at a share price of £0.45 to strengthen its financial position while units are sold in an orderly manner to maximise value; or 2. Auction Sale: units to be sold at auction as soon as possible; in discussions with auction houses, we have been advised that auction sales typically result in approximately 20% discount to fair value." In the property's Latest Update, we provide an illustrative comparison of these two options."
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 10,846
Likes: 11,072
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Post by ilmoro on Feb 12, 2023 22:28:12 GMT
I don't get it, how hard can it be for a property management firm to sell a flat the normal way without going down the auction route? What difference is a few months going to make. Given the past failed sales, I'd ignore the supposed market value being used by PP. Yep, email received on the 1st Feb for one of my properties that should have started it's 5 year anniversary process on the same day. I'm pretty peeved! "Hello XXXXX, You are a shareholder in XXXXX, which did not successfully raise capital in the Nov-Dec 2022 Equity Fundraise. XXXX was due to launch its 5-year anniversary process on 1 February 2023. The property's financial situation necessitates a deferral of one month to undertake the shareholder vote described below. The 5-year anniversary process is therefore scheduled for 1 March 2023. This property's financial position is unsustainable, particularly due to high mortgage interest rates. As such, shareholders now have a choice between the following two options: 1. Equity Fundraise of £132,000 at a share price of £0.45 to strengthen its financial position while units are sold in an orderly manner to maximise value; or 2. Auction Sale: units to be sold at auction as soon as possible; in discussions with auction houses, we have been advised that auction sales typically result in approximately 20% discount to fair value." In the property's Latest Update, we provide an illustrative comparison of these two options." I think the issue is we aren't talking about a flat but a block of flats ... and thats a different market. Doesn't seem to be an issue with selling one or maybe two flats.
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Post by c0nfuzed on Feb 13, 2023 17:30:56 GMT
They've already sold two flats in this block - incredible to think that it's still in still in a such a dire situation! The email reads to me like they'd prefer us to vote for the second equity fundraise, presumably so 'Better' can invest at crazy prices, but why would we do that when it's already failed it's previous fundraise?
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Post by scepticalinvestor on Feb 13, 2023 19:12:15 GMT
They've already sold two flats in this block - incredible to think that it's still in still in a such a dire situation! The email reads to me like they'd prefer us to vote for the second equity fundraise, presumably so 'Better' can invest at crazy prices, but why would we do that when it's already failed it's previous fundraise? I'm not in this property as none of my PP sales ever went the whole way. Did PP return any cash at all after these sales or did all the proceeds go elsewhere?
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Post by c0nfuzed on Feb 15, 2023 15:43:18 GMT
No, we didn't get any return. They used the proceeds from the sales to repay the mortgage and "strengthen the financial position". So quite why the situation is still so dire is anyone's guess. Mis-management perhaps?
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Steerpike
Member of DD Central
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Post by Steerpike on Feb 15, 2023 17:46:35 GMT
I suspect that many retail investors are somewhat disillusioned with Property Partner London House Exchange and do not feel inclined to invest further.
Therefore, even if shares are offered at a knockdown price, the bulk of the user base may not participate and this may leave any group that is less disenchanted and/or better informed with an excellent buying opportunity.
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jester
Member of DD Central
Posts: 161
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Post by jester on Feb 16, 2023 9:38:46 GMT
I suspect that many retail investors are somewhat disillusioned with Property Partner London House Exchange and do not feel inclined to invest further.
Therefore, even if shares are offered at a knockdown price, the bulk of the user base may not participate and this may leave any group that is less disenchanted and/or better informed with an excellent buying opportunity.
I've been as disappointed with LHXs performance as anyone with continual de-valuations wiping out any gains. However I'm considering the four equity raises currently underway listed at 50% discount to Vacant Valuations. I realise these are struggling properties but at this price point surely even LHX can't make a loss ... can they? Also any clear idea why their level of funding varies from 76% to a lowly 6%?
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SteveT
Member of DD Central
Posts: 6,873
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Post by SteveT on Feb 16, 2023 15:24:13 GMT
I suspect that many retail investors are somewhat disillusioned with Property Partner London House Exchange and do not feel inclined to invest further.
Therefore, even if shares are offered at a knockdown price, the bulk of the user base may not participate and this may leave any group that is less disenchanted and/or better informed with an excellent buying opportunity.
I've been as disappointed with LHXs performance as anyone with continual de-valuations wiping out any gains. However I'm considering the four equity raises currently underway listed at 50% discount to Vacant Valuations. I realise these are struggling properties but at this price point surely even LHX can't make a loss ... can they? Also any clear idea why their level of funding varies from 76% to a lowly 6%? One reached over 50% extremely quickly, so I'm guessing one large investor
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Post by scepticalinvestor on Mar 2, 2023 9:07:52 GMT
Flat bought for 125k in 2017 now has an offer for 110k in 2023.
This is a bog standard block of flats - low rise, brick built, no cladding, traditional roof - the kind you'd expect to hold its value as maintenance is likely to be low, no large expenses, easy to mortgage, etc.
I don't know whether it was a poor buy or a poor sale.
Needless to say, I'm not going to see any crumbs from the sale, it'll all go into shoring up the block's finances.
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