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Post by scepticalinvestor on Aug 15, 2023 4:51:23 GMT
Failing to fund 5-year exit 60 studio property is to be sold on a unit by unit basis apparently. Mark your diary for 2083.
Has a new type of property transaction been invented or is this realistic already?
I doubt many original investors intentionally signed up for this. Not sure if this is one of the few properties with a non-zero dividend.
I hope you’re joking! Is there even a market for individual student studios in purpose built student blocks? I’m assuming this is the Bangor property which I’m invested in, I haven’t received any comms indicating this potential course of action?
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Post by greatboo on Aug 16, 2023 11:29:46 GMT
It's a zero dividend property - which probably explains the tumbleweed blowing through the blocklisting.
I'm guessing the "selling single units" is just standard text that they have missed - I expect it to be sold as a block (albeit at a big loss) - I don't think there's a market for single units.
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Post by greatboo on Sept 1, 2023 17:14:08 GMT
Now confirmed by LHX on the investment page:
"As a result, the property will be sold (as a single block) and net proceeds will be returned to all shareholders in the property."
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Post by scepticalinvestor on Sept 2, 2023 7:33:57 GMT
Now confirmed by LHX on the investment page: "As a result, the property will be sold (as a single block) and net proceeds will be returned to all shareholders in the property." It'll be interesting to see what kind of interest and offers they'll get for the block. Bought for 4.5m in 2018, current property partner valuation of 3.6m, current 'market' value (based on latest traded shares) of 2.8m. My guess is that this is going to drag on for a while.
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Post by overthehill on Oct 31, 2023 14:12:29 GMT
Another day, another quarter update, another dollar or to be precise 100 less dollars.
That's my paper profit down to £581 over 7 years having peaked at 20k investment, prediction of 0 profit after remaining properties are FINALLY sold still on track.
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jester
Member of DD Central
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Post by jester on Nov 1, 2023 6:07:42 GMT
Another day, another quarter update, another dollar or to be precise 100 less dollars.
That's my paper profit down to £581 over 7 years having peaked at 20k investment, prediction of 0 profit after remaining properties are FINALLY sold still on track.
I've been involved with this crowd for 6yrs (how time flies with terrible investments) .... my IV performance has now reached negative -£200!! And it's eroding every month. Wish I'd thrown the whole lot into Bitcoin, would have smashed this lot for value.
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beh
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Post by beh on Nov 17, 2023 18:27:38 GMT
"following investor feedback, with investors voicing a desire to have the option to liquidate their holdings in these properties prior to the sales process completing, we are acting to provide an alternative exit option"
Nice to have the option I guess. Still only one property has repaid capital this year for me, seems a long time ago.
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Post by overthehill on Nov 18, 2023 10:29:20 GMT
"following investor feedback, with investors voicing a desire to have the option to liquidate their holdings in these properties prior to the sales process completing, we are acting to provide an alternative exit option"
Nice to have the option I guess. Still only one property has repaid capital this year for me, seems a long time ago.
I've not received any communication. They've been sitting on goldmine for a few years and everyone connected with this enterprise has been benefiting except the investors who have some nice fools gold. The gold is running out so they need to come up with new revenue streams. It's been hard to tell what the long term plan is as I've not seen any new business for years.
When a property sells more than 50% of its units, the mortgage should be paid off and cash should accumulate until the last unit is sold. I don't see anything in the income sheets about bank interest?
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Post by longjohn on Dec 2, 2023 11:20:46 GMT
"following investor feedback, with investors voicing a desire to have the option to liquidate their holdings in these properties prior to the sales process completing, we are acting to provide an alternative exit option"
Nice to have the option I guess. Still only one property has repaid capital this year for me, seems a long time ago.
An email arrived yesterday with the news that we can now trade properties that are up for sale 'providing one can find a buyer'. Better than nothing I suppose.
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Post by overthehill on Dec 4, 2023 15:50:35 GMT
"following investor feedback, with investors voicing a desire to have the option to liquidate their holdings in these properties prior to the sales process completing, we are acting to provide an alternative exit option"
Nice to have the option I guess. Still only one property has repaid capital this year for me, seems a long time ago.
An email arrived yesterday with the news that we can now trade properties that are up for sale 'providing one can find a buyer'. Better than nothing I suppose.
There is money to be made on properties left on this platform if you're willing to spend a few hours of DD. All the necessary data is there, it's just a question of balancing the discounts available against how long you think it will take to sell the remaining units in each property i.e. cash drag. And after the last unit is exchanged there is another 2 month delay while the SPV accounts are formalized.
I'm not putting any new money in or selling at large discounts.
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IFISAcava
Member of DD Central
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Post by IFISAcava on Dec 4, 2023 16:51:12 GMT
An email arrived yesterday with the news that we can now trade properties that are up for sale 'providing one can find a buyer'. Better than nothing I suppose.
There is money to be made on properties left on this platform if you're willing to spend a few hours of DD. All the necessary data is there, it's just a question of balancing the discounts available against how long you think it will take to sell the remaining units in each property i.e. cash drag. And after the last unit is exchanged there is another 2 month delay while the SPV accounts are formalized.
I'm not putting any new money in or selling at large discounts.
The problem is the discounts are against valuations that have proven very unreliable.
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Post by overthehill on Dec 4, 2023 17:38:29 GMT
There is money to be made on properties left on this platform if you're willing to spend a few hours of DD. All the necessary data is there, it's just a question of balancing the discounts available against how long you think it will take to sell the remaining units in each property i.e. cash drag. And after the last unit is exchanged there is another 2 month delay while the SPV accounts are formalized.
I'm not putting any new money in or selling at large discounts.
The problem is the discounts are against valuations that have proven very unreliable.
I was only referring to properties which have started the 5 year exit sales where the current valuation should be more predictable as each unit sells. It's the method, execution and sales performance which puts me off plus I doubt the valuation takes into account future direct and indirect unit selling costs.
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Post by overthehill on Dec 28, 2023 17:17:27 GMT
They recently made changes so that properties can be traded while each unit is being sold off.
It's about time they looked at buying back shares of properties once the mortgage is paid off instead hoarding all that cash until the very last unit sells. Of course why would they as it will reduce their AUM fee quicker, currently around 330k a year.
Properties I've looked at are selling on average 1 unit every 6 months which probably explains why there is no urgency for new revenue streams.
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Post by drg on Dec 28, 2023 19:42:55 GMT
Share buybacks at below fair value are an incredible idea. Would provide more liquidity for people who want to exit early and would increase the value per share for everyone who remains. They'd need to run a shareholder vote to see if people are happy with them buying back shares up to a certain price and I guess they may feel it would confuse people, cause problems with information asymmetry or some other issue, but if they could do it, that would be a great use of the money pile in some of these properties.
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Post by scepticalinvestor on Jan 4, 2024 7:48:34 GMT
I'm pretty sure they're down to skeleton levels of staffing so I'd think it unlikely that they'll consider making any big improvements to their offering, and definitely not one which shrinks their fee pipeline.
With a 2.0 Trust pilot rating and a raft of scathing public reviews, their retail plans (if they had any!) are completely shot.
I'm guessing that they are in wind-down mode and will extract every penny they can until PP ends up in administration.
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