Thursday, February 19, 2009

More specifics on Land Securities attempts in the scramble for cash

Land Securities plans 756 mln stg rights issue

Land Securities, Britain's largest real estate company, joined the scramble for capital among debt-starved property investors with a 756 million pounds ($1.1 billion) rights issue on Thursday. The company, a major landlord to the British government, is selling 291 million shares at 270 pence as part of a multi-pronged plan to prop up its balance sheet and protect against further downside in the [turbulent] UK property market. The 5-for-8 rights issue follows the sale of more than 3.4 billion pounds of assets since April, the mothballing of several large development projects, a 10 percent cull in its workforce and a 63 percent slide in its share price in the last 12 months.

Posted by 51ck-6-51x @ 11:53 AM (626 views)
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2 thoughts on “More specifics on Land Securities attempts in the scramble for cash

  • Excuse the repost but comment is attache to article that is about to fall off front page. I’m keen to find sector really worth shorting. I’ve I’d been looking 6 months ago it would have been easy but getting more difficult as market declines. Comm Prop has declined alot but as a hunch think it looks veulnerable.

    Anyway as prev post currently doing more research as don’t want to find the bad news is priced in. The critical aspect must be rents. During the boom rental income came no where close to justifying share/asset price which was all bubble based on inflated capital value, there has been a severe correction to this and as initial assesment it looks as if things are now sanely priced (tho not rock bottom value) if we could assume rental income were to remains stable. Thing is rental income may be far less stable than everyone is assuming and I’m not sure what level of tolerance is built into current values. To truly nail it would need to research a number of companies to find the biggest discrepancy between value and market value but the level of research to do this is way beyond one person. So it will be a sector play if I can get comfortable on it on an objective basis.

    Now an ad hoc group prepared to do collective research into such matters would be a killer idea!

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  • bellwether

    Have you had a go on the simulator yet (oh err sounds saucy) the spread betting simulator.

    I tried trading through the day today with fairly disastrous results.

    Yesterday I made £300.
    Today I lost about £2500 until about 7.00pm tonight then made back about £3k in an hour to end day 2 £500 up. £800 in total.
    It seems alot easier to trade in the evening when the movements are bigger.
    Someone mentioned yesterday (possibly flashman) that you can’t make money as the spreads are too big.
    This seemed to be the case during the day but with bigger movements in the evening it doesn’t matter so much (as long as you’ve gone in the right direction)

    Happy to discuss off line [email protected] .

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