TX2
05 Feb 2016
Re: Ahead of the Curve, & Buying Opportunity I can see how Puma/Shore Capital can make money with all their commissions/management fees/directors fees but it is less obvious how outsiders can benefit.A large dose of cynicism is entirely deserved here as Puma/Shore Capital were involved from the start in the Hotel Corp p155ing away over £100m of shareholders capital here in a failed enterprise while at the same time pocketing £10's of million in (mis)Management fees.I have a nominal holding bought sub 1p;I have not subscribed to the new issue and will watch how things go.At the moment this venture is subscale and it will need to raise more cash to create a worthwhile venture (assuming it is viable business plan) simply because running costs of PLC will at present be disproportionate.
ventura1
03 Feb 2016
Maybe when you mentioned Duncan B built business up to £175mill and sold it for £28,000 that put people off
ventura1
03 Feb 2016
shame Hedgehog, few people agree with you only 5% take up of open offer, and share price below offer.
Hedgehog100
02 Feb 2016
Ahead of the Curve, & Buying Opportunity The mainstream care home sector has seen strong institutional investor interest recently, and HCP-SIP's more specialised focus looks to be ahead of the curve. With good scope to build a sizeable property portfolio in this area relatively cheaply, before institutions start bidding prices up. Moreover, unlike the shares bought by an investment trust, HCP-SIP's investments will not be buyable elsewhere. And to buy similar investments directly would be financially onerous for most retail investors, and without the liquidity of owning shares in a listed company. Shares are often temporarily weak at the time of a fundraising, as with HCP at 0.825p, but that can often present a god buying opportunity, as in this case.
Hedgehog100
02 Feb 2016
Value-Creation & Duncan Bannatyne It's also important to note that HCP-SIP will be undertaking an element of actual property development (with its increased scope for value-creation), as opposed to just buying 'completed' facilities for its purposes: "Initial Programme ... Two of the properties are already in operation as care facilities for children and available as sale-and-leaseback opportunities while the two other properties would be open market purchases of standard homes for conversion. The adaptation work required is modest with a subsequent local authority compliance check prior to receipt of a designated change of use." I.e. HCP-SIP will be more of an active business than an investment trust is. And HCP-SIP's investing policy focus has shades of how Duncan Bannatyne built a large part of his initial fortune: "The initial and primary focus is to make investments in purpose-built homes for adults with learning difficulties requiring support from carers (for example adults with autism), purpose-built care homes for the elderly and infirm and converted dwellings accommodating young adults/late teens requiring extensive support from social services." Duncan Bannatyne: "Net worth £175 million" "He eventually sold the business for £28,000, founding a nursing home business called Quality Care Homes which he then sold for £26 million[7] in 1997 and children's nursery chain Just Learning for £12 million.[9]"[link]
Hedgehog100
01 Feb 2016
Attractive Potential, Multiple Terms HCP (currently 0.825p mid) looks to have attractive potential in both the short, medium, and longer terms:1. SHORT TERM.• Currently looks to be returning back up the the fundraising price of 1p, and a slight premium to post-fundraising cash of circa 0.9p per share.• Active positive February newsflow: 20:1 share price consolidation and name change to Specialist Investment Properties (both 8 February), and news re. completion of the fundraising.2. SHORT/MEDIUM TERM.• Strong positive newsflow as the company executes its initial property investment programme during March - June.• Follow-up company development: larger fundraising(s), and further acquisitions.• Dividend policy: "The Company is targeting a dividend yield of seven per cent. per annum, and your Board expects to pay the first dividend in Q1 2017."3. MEDIUM/LONGER TERM.• Growth in dividends.• Capital growth: " ... these properties can offer attractive returns on equity and the prospect of medium term capital growth as the chosen specific property category grows and becomes better appreciated by mainstream property investors."• Move to increased rating as the company grows, develops a track-record in its new sub-sector, and becomes more widely-appreciated by the market.
Hedgehog100
01 Feb 2016
15th. January 2016 Circular From HCP's 15th. January 2016 circular:"2.3 Initial ProgrammeThe Property Investment Adviser has initially identified four properties for the Company to look to acquire. The acquisitions would comprise a combined investment of around £1.3 million, of which it is expected that around 70 per cent. can be financed by debt. The Company would seek to raise the debt initially from Heritage Square a specialist property lender advised by Puma Investments as the Company believes this offers faster execution at competitive pricing. As the Company acquires more properties and builds up a portfolio of income producing properties, it will look to refinance this initial debt with a longer term facility. Two of the properties are already in operation as care facilities for children and available as sale-and-leaseback opportunities while the two other properties would be open market purchases of standard homes for conversion. The adaptation work required is modest with a subsequent local authority compliance check prior to receipt of a designated change of use.The Company would endeavour to acquire each home with an existing lease in place and with an established care operator. In relation to the two open market purchases, leases would be entered into with the care operator on acquisition which would be subject only to approval of the change of use. The Company will target such leases to be for a minimum term of 20 years (25 years on properties initially identified) on full repair and insuring (FRI) basis, with annual rent increases linked to the consumer price index (CPI). The care operator for the four properties has recently secured a substantial, term care placement contract with Birmingham City Council and needs additional space. This contract will support the care provider’s ability to meet the lease payments. The care provider is a well-established operator with over 10 years’ experience, already operates a network of 19 residential care units, one specialist school and has 36 young people in its care. It is a substantial enterprise with 250 staff based within five local authorities and also undertakes ad hoc work nationwide.The Property Investment Adviser has additionally identified a pipeline of similar transactions which it will introduce to the Company for the Company to seek to execute within two to three months of the close of the Capital Raising. The Property Investment Adviser would then aim to identify further acquisitions which would be part financed through raising further equity in a larger fundraising or raisings."[link] 0.825p mid HCP is looking oversold, and great value compared to the £2M. + fundraising just arranged at an equivalent of 1p (20p post-consolidation).At this level the share will be trading at a discount to cash after the fundraising, and operating in a defensive area of the property market that looks a nice haven in these uncertain times.
Gold or Silver
12 Sep 2015
Re: Odd trading indeed Let`s hope the new guys are better at making money than the old scoundrels here before . And May
ventura1
08 Sep 2015
why would the company and shareholders want to get involved in a scheme managed by puma/shore who lost the company everything???
ventura1
04 Sep 2015
The Hotel Corporation plc ("HCP" or the "Company") Proposed new Investing Policy Notice of Extraordinary General Meeting Dear Shareholder, Ref- Mr Yeoman and Mr Jackson's Requisition I am writing on behalf of myself and Mr Jackson, who together have requisitioned a General Meeting of your Company. It is our belief that a change in the board of your company is now necessary and will give all shareholders the opportunity to create value. During the last year I have put forward several suggestions via the board and approached Shore Capital (under instruction from the board) for their support. However, the board have seemingly been unable to move forward, or indeed consult its wider shareholder base on our ideas, without the specific support of its stakeholder, Shore Capital. This support was evidently not forthcoming. As you are now aware, shareholders have now been offered an alternative opportunity; to invest in a new fund structure, advised by Puma Investments, a member of the Shore Capital Group. Aside from noting that the Board seems only prepared to recommend to shareholders a new direction for the Company, if it involves Shore Capital, shareholders should also recognise that the previous Puma vehicle in which HCP shareholders held their investment, resulted in a large loss of capital for shareholders, but a large return for its promoters, Puma. [link] Subject to the passing of Resolution 1, the Company will enter into a property investment advisory agreement with Puma Investment Management Limited. Puma Investments is a subsidiary of the Shore Capital group of companies. -Is this a conflict of interest? -Are the proposed Puma fees fair and reasonable? -Should Shore Capital be voting on this at all? It is my belief that the recently suggested investing policy, resolution 1. put forward by your board, is as a result of the pressure felt by the board after the requisition of the GM and is not a well planned strategy for your company. Shareholders must now vote on three resolutions:- 1. To adopt the new investment plan into another Puma structure (owned by Shore Capital) 2. Appoint Marcus Yeoman as a director. 3. Remove Derek Short as a director of your company. We have received a number of supportive e mails which in conjunction with our own holdings represents approximately 25%, this group have indicated that they wish to vote for change. In order to do this they will vote in the following way:- 1. Against the resolution 2. For the resolution 3. For the resolution I would urge all shareholders to vote at this time in a way that they feel will preserve value and give your company the best prospects moving forward. It is important that if shareholders hold shares in a nominee company and have not received their proxy card, they should contact their broker or advisor and instruct them on the way they wish to vote, all votes must be received before 11am on the 14th Sept. 2015. Yours faithfully Marcus Yeoman Shareholder Contact: [email protected]
TX2
31 Mar 2015
Re: Odd trading indeed Some possibilities of value indicated from talks in last weeks accounts;a modest premium to NAV may result if anything happens.....Worth 2p on a good day perhaps!
