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porca misèria

Southern Cross

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It's official. Southern Cross killed by an imbalance of costs and income.

Assets up for grabs at firesale prices. Business opportunities for those who can get the costs under control.

Right. That'll be headed by property costs. Any buyer will need to negotiate affordable rents or acquire freeholds. Property owners are in a tricky position (not easy to sell with vacant possession on the open market). They'll be campaigning hard to blackmail local authorities into taking on the business ("can't turf the old dears out on the street"). But if "we" call their bluff that'll be a useful boost for HPC, as it forces them into deals that the market can bear.

So who will pick up this business? The private sector, at market (firesale) prices? Or the public sector, at inflated bailout costs?

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The original Southern Cross management will buy it up after writing off the debts of the 'old' Southern Cross. <_<

That's how limited liability works, right?

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Landlords owning all 752 care homes in the Southern Cross Group have said they want to leave the group

So, Landlords own Southern Cross, who are ceasing trading because...er... they can't afford the rents?

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Right so Southern Cross owned the properties and did a sell/lease back to someone else.

What did SC do with the newly acquired cash? They can't have spunked it all already?

The properties now belong to other companies getting rent from SC, so they aren't getting paid but at least they have the assets.

SC pockets or spunks wads of cash from the sale, goes pre-pack admin, screws shareholders and then mgmt start again with Northern Cross? What's the betting that there are strong ties between the landlords and new/old management?

Stinks.

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it's the LL's who are taking it over.

It sounds like they are simply taking over the day to day running of the properties they were renting to SC. In time they'll realise they can bargain harder on supply contracts if they group together, etc. and who has recent experience of that, hmm, let me think...

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Right so Southern Cross owned the properties and did a sell/lease back to someone else.

What did SC do with the newly acquired cash? They can't have spunked it all already?

The properties now belong to other companies getting rent from SC, so they aren't getting paid but at least they have the assets.

SC pockets or spunks wads of cash from the sale, goes pre-pack admin, screws shareholders and then mgmt start again with Northern Cross? What's the betting that there are strong ties between the landlords and new/old management?

Stinks.

The properties were sold and leased back under the private equity owners, they're the ones who have taken the windfall from that little ruse, leaving SC with the debt. They moved on a few years ago.

Doubles all round!

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The properties were sold and leased back under the private equity owners, they're the ones who have taken the windfall from that little ruse, leaving SC with the debt. They moved on a few years ago.

Doubles all round!

I've just been checking out Quantum Care, who run 28 homes in Beds, Essex and Herts. Spent a lot of time in one of them (St Albans) over the past ten days, an elderly aunt very ill, died on Tuesday. However, the home is lovely, with really nice garden, and the staff all seem exceptionally nice. Apparently it's a not-for-profit org.

Just thought I'd mention in case anyone's looking for somewhere nice.

My aunt was self-funded but apparently some of the residents are not and are very short of cash/relatives to help. Home staff asked us to leave aunt's clothes rather than take to charity shop, since some of the residents could do with them. :(

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AIUI there are several different landlords. The biggest, PHP, owns a couple of hundred properties: those may be the ones formerly owned by southern cross.

But there's a long tail of small landlords too, and there isn't going to be a one-size-fits-all solution. Some of them might be in urgent need of someone to take over the business, and be open to - indeed in need of - a firesale deal.

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Ladies and Gentlemen of HPC.

Mark my words.

This is one big sh*t sandwich of which all taxpayers (Gen X and Gen Y) are going to have to take a rather large bite.

The boomers will not allow their senior years to be spent in poverty.

Politicians will realise that the grey vote will win them elections.

Stand by. In 30 years time, care of the elderly really will be very desperate...and we will be parting with huge amounts of tax for the privilege.

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Of course Cameron is putting the wheels in motion that nobody pays more than £35K for care.

The shortfall willl be from Tax, tax, tax! Look out generation Z!

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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