RGL placing @10p on a 15 for 7 basis

[Gerry557]

So the long trialled possible placing is now real.

I can't say it's great for shareholders but might help newer ones.

Hopefully holders will have enough spare cash on hand, room in ISA wrappers and enough time to get their ducks in a row.

I suspect some will just be getting over the National Grid placing.

Looks like a dividend cut and share consolidation to boot

[formoverfunction]

I haven't read the Prospectus, project for later, but on the face of it positive news for the ORB holders.

I hold both equity and bonds. Neither at any signicance to my over all portfoilo, combined under 1% of my equity, signifcantly less when include with none equity holdings and investment property.

I think I am right in saying this, that if you had bought at the IPO, by this stage some 50% of your capital would have been returned.

Now your are presented with the opportunity to purchase at a discount to NAV, that's mostly based on an illiquid maket place, of over 80%.

With the proceeds going to deleverage the business, and capacity to upgarde more EPC.

I haven't worked out my position via ISA''s, but I expect if I don't have capicity - gut feel I will - then arranging to hold it ouside shouldn't be an issue.

Overall, I expected to see the retail bonds redeemed, and was anticipating re-investing the capital back into the equity.

I have been hoping they would do a nice deep discounted open offer for qualifying existing shareholders and here it is.

To some extent I have been keeping a little chash on the sideline for that purpose alongisde a potentilly discounted NatWest offer.

I am sure I will up my rights and possibly adding in the open market.

[ron505]

I’m planning to take up my rights, hopefully won’t be throwing good money after bad!

What’s the general consensus, that it’s a no brainer if you have the cash on hand (otherwise getting heavily diluted)?

[Gerry557]

Well you have suffered up to this point. Once done the updated company should be much stronger. The quarterly divi was going to be 2.2p post the 1 for 10 share consolidation. So the new shares might offer 10% yield going forward if my maths is correct and assumes a divi maintained at that level throughout the year. Probably around 5.5% at current live prices

You are also buying at a substantial discount to NAV so potential for the SP to rise over time.

Unfortunately its still the same captain who steered onto the rocks and when the shouts of land ahoy! were heard, only started to change course at the last minute.

Then you have to have the available spare cash to purchase the new shares in addition to room in any ISA allowance if its in a wrapper. I think time scales might also be quite tight especially if you are away on holiday.

Its probably not a great idea not take them up. Even if you have to sell your current holding to buy the discounted placing shares. Its looking like you will have to add what was the value of your holding pre the announcement. So if it was worth £5k then you probably need to find another £5k to take part.

[formoverfunction]

So an 80% discount to NAV and 10% yield, still doesn't sound attractive, looks firmly into deep value if they can steady the ship and of course get the offer away.

Part of the deal appears to allow a Bridgemere Director to join the Board I believe and the existing Chair, Kevin McGrath is retiring.

If that 10% is correct that just over 4 years to return the offer cash.

So participaing IPO investors have had over 50% of their cash back as dividends, and will get the their offer monies back in 4 years.

It may be a slightly unfashionable approach, but with a 30 years asset, I am less inclined to be worried over the 5 years performance and more interested in how quicky my capital is returned and how many years of "house' income I get.

I'm obviously less concerned about the sudden demise of total office use, The Guardian has recently been reporting on the sudden increase of post covid feeings of being "alone" and anecdotally I watched a documentary recently on the history of the "office", the program started with the Romans 2000 years ago. There's something very human about wanting to be with colleagues.

I'm not sure I can provide any comment on investors holiday, expect that some of the trends that have changed the use of office, might also assist investors even if they are on holiday.

I'm told my life is a permanent holiday, I retired at 42, and I'm never far away from a laptop.

[BullDog]

Apologies, maths is definitely not my thing. I'm tempted to say it's good money following bad this one. So after all the share placing and consolidation of shares, a non subscriber to the placing is looking at maybe 2% yield as a result of the dilution?

[formoverfunction]

in terms of the future dividend this is the only thing you can be sure of:

Assuming that Admission and Admission of the Consolidated Shares occur, the Board's current intention is to pay approximately 2.2 pence per Ordinary Share (assuming the Share Consolidation becomes effective) in relation to the 2024 Q2 Dividend, which is expected to be declared in September 2024.

I am going to try and do some work on this over the weekend, when I'll hopefully I'll have less distraction.

It looks like I've just had an email from ii about the corporate action, I didn't think that was possible until the EGM, but hey-ho. Maybe it will be englightening.

[Gerry557]

in terms of the future dividend this is the only thing you can be sure of:

Assuming that Admission and Admission of the Consolidated Shares occur, the Board's current intention is to pay approximately 2.2 pence per Ordinary Share (assuming the Share Consolidation becomes effective) in relation to the 2024 Q2 Dividend, which is expected to be declared in September 2024.

I am going to try and do some work on this over the weekend, when I'll hopefully I'll have less distraction.

It looks like I've just had an email from ii about the corporate action, I didn't think that was possible until the EGM, but hey-ho. Maybe it will be englightening.

I'm expecting my broker to have a corporate action sorted over the weekend. This should clarify how much I need and the date the funds need to be in the account. I suspect it will be earlier than the date in the prospectus.

[formoverfunction]

It was the corporate action, ii. So, I did all my calculations last night.

It always sort of reassuring to get some notification to validate your own estimation.

In the distance past I used to do this stuff for a living, spending hours validating the rolling penny on transactions.

I have to say I wasn't expecting it so quickly, as any seen the actual prospectus yet?

It's been a social few days for me, bumped into a load of people I knew as a teenager...either they've been in deep freeze or I have.

[Gerry557]

It was the corporate action, ii. So, I did all my calculations last night.

It always sort of reassuring to get some notification to validate your own estimation.

In the distance past I used to do this stuff for a living, spending hours validating the rolling penny on transactions.

I have to say I wasn't expecting it so quickly, as any seen the actual prospectus yet?

It's been a social few days for me, bumped into a load of people I knew as a teenager...either they've been in deep freeze or I have.

Yes Ive just been speed reading all 247 pages. Its now available on their website. I did a double take on this bit .....

Ordinary Shares acquired by a UK resident individual under the Open Offer are not expected
to be eligible to be held in an Individual Savings Account (“ISA”). page 127

As my broker hasn't done any corporate action yet Im hoping that this isnt quite correct.

So valued at £647.8 million with 1,620,886,404 Ordinary Shares. So 39.97p per share possible once done with NTA per Share of 56.4

[formoverfunction]

Do you remember wherer you found it? I've looked, but didn't spot it.

[Gerry557]

It was the corporate action, ii. So, I did all my calculations last night.

It always sort of reassuring to get some notification to validate your own estimation.

In the distance past I used to do this stuff for a living, spending hours validating the rolling penny on transactions.

I have to say I wasn't expecting it so quickly, as any seen the actual prospectus yet?

It's been a social few days for me, bumped into a load of people I knew as a teenager...either they've been in deep freeze or I have.

Yes Ive just been speed reading all 247 pages. Its now available on their website. I did a double take on this bit .....

Ordinary Shares acquired by a UK resident individual under the Open Offer are not expected
to be eligible to be held in an Individual Savings Account (“ISA”). page 127

As my broker hasn't done any corporate action yet Im hoping that this isnt quite correct.

So valued at £647.8 million with 1,620,886,404 Ordinary Shares. So 39.97p per share possible once done with NTA per Share of 56.4

Missed the debt off at 40% LTV should be 23.98p

[Gerry557]

Do you remember wherer you found it? I've looked, but didn't spot it.

https://www.regionalreit.com/

Scroll down to the 3 white boxes half way down, the third box is

£110.5m Capital Raise and Notice of EGM
27 June 2024

you have to agree to the disclaimers

[formoverfunction]

Thanks, found it. I am not sure how I missed it the first time.