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SCP - Shopping Centres Australasia Property Group

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Hi,

I'm expecting to receive a number of shares under the WOW 5:1 ownership but wondering will it be worth it to invest directly and put a buy on the float?
 

nulla nulla

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Re: SCA - SCA Property Group

From what I read in the WOW announcement, shares in the property trust are being issued at a small premium to net tangible assets. I can't remember seeing what the distribution/dividend policy was going to be or how and when distributions would be paid.

It would not surprise me to see a sell off after the float. Most of the other recent floats have had a sell off and some are trading at big discounts to the float price.
 

ROE

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Re: SCA - SCA Property Group

From what I read in the WOW announcement, shares in the property trust are being issued at a small premium to net tangible assets. I can't remember seeing what the distribution/dividend policy was going to be or how and when distributions would be paid.

It would not surprise me to see a sell off after the float. Most of the other recent floats have had a sell off and some are trading at big discounts to the float price.
read the prospectus it be 5-20% below NTA, final price will be determined by institution bidding.
 

nulla nulla

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Re: SCA - SCA Property Group

Thanks ROE. I may have read it in a newspaper article and not the WOW releases. Never-the-less if the issue price is going to be determined by the institutional bidding, it will be interesting to see how much discount they extract.
 

nulla nulla

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Re: SCA - SCA Property Group

Chastened, I ventured forth and read the Woolworths release and read the comsec IPO offer. Woolworths intends to create a new ASX listed property trust by undertaking an "in-specie" distribution to all Woolworths share holders.

An application has been lodged for the stapled units of SCA Property Group to be quoted on the ASX under the code "SCP".

The forecast NTA for SCP is $1.58. Holders of Woolworths will be issued 1 stapled share in SCP for every 5 shares held in woolworths. The proposal is also subject to share holder approval at the AGM on 22 November 2012.

SCA Property Group will also undertake and equity offer of 337 million new SCA Stapled Units. The equity price offer range is expected to be at a discount between 5% and 20% of the NTA. The final price will be determined by a book build which will take place after the AGM on 22/11/2012. The price range is expected to be between $1.50 - $1.26.

If the offer is popular the discount will be at the lower end of the scale. If the offer is hard for the Offer Managers to flog, the discount could be at the higher end of the scale. If the IPO is popular it could close early. If it is unpopular, it could be closed and not proceed.

If the equity offer doesn't proceed, the in-specie distribution to Woolworths share holders will still proceed.

It would not surprise me to see a sell off after the float. Most of the other recent floats have had a sell off and some are trading at big discounts to the float price.
Given that Woolworths is the anchor tennant and leases are in place for a considerable number of years, it is hard to see SCP dropping like Myers etc. The recent capital raising by FKP included an institutional component and , while the price is low, it is still above the issue price. Maybe property trusts are fairing better atm because of their stability and yield. One point I liked in the details was the projected debt/gearing levels of only 27%.
However, there is always some risk. As always do your own research and good luck. :)
 

nulla nulla

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Re: SCA - SCA Property Group

Further food for thought. Anyone holding less than 1750 Woolworths shares is going to receive less than 350 SCP shares. At $1.50 per share they will have a parcel of shares valued at $525.00 or less.

Holdings with a value less than $500.00 are considered a non marketable parcel. Has any indication been given as to how holders of small parcels can unload their shares? (I admit in advance that I have not completely read the prospectus but I did ask comsec and they didn't have an answer either).
 

System

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Shareholders vote for Woolies trust spin-off

by: Sarah Danckert
From: The Australian
November 23, 2012 12:00AM

WOOLWORTHS shareholders voted resoundingly to approve the spin-off of a $1.4 billion portfolio of the group's supermarkets into a new listed property trust.

The new entity, Shopping Centres Australasia or SCA Property Group, will begin trading on the stock exchange from Monday after the overwhelming support at the retail giant's annual general meeting yesterday.
More: http://www.theaustralian.com.au/bus...s-trust-spin-off/story-fn9656lz-1226522309862
 

nulla nulla

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Shares issued to applicants in the offer at $1.40ea. Based on the figures supplied in the SCA Property Group Offer dated 5 October 2012 I have prepared the following table. Please note the earnings and distributions are guideline forecasts for the period 2013 - 2014. The fore casts earnings and distributions for the period ending 30 June 2013 are: Earnings of $0.065 per share and Distributions of $0.056 per share.

Share: SCP
Date: Closing 26-11-12
Closing Price 1.44
Issued Shares 584,200,000
Capital 841,248,000
Earnings $ 0.1180
ROE 8.19%
Dist $ 0.104
Yield % 7.22%
P/E 12.20
NTA $ 1.58
Discount to NTA 8.86%

On the first days trade over 56 million shares were traded representing almost 10% of shares on issue.
 
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Re: SCA - SCA Property Group

Further food for thought. Anyone holding less than 1750 Woolworths shares is going to receive less than 350 SCP shares. At $1.50 per share they will have a parcel of shares valued at $525.00 or less.

Holdings with a value less than $500.00 are considered a non marketable parcel. Has any indication been given as to how holders of small parcels can unload their shares? (I admit in advance that I have not completely read the prospectus but I did ask comsec and they didn't have an answer either).
I wondered the same thing myself. Looks like they'll organise a non marketable parcel buy back subsequent to issue but no guarantees. My son is the proud owner of $11.86 worth of these shares, quite useless.


:"It is expected that the Distribution will result in a large number
of holdings of Stapled Units with a value of $500 or less (that
is, less than a marketable parcel under the Listing Rules). The
Woolworths Directors understand that, in order to reduce the
costs and administration associated with servicing large numbers
of Stapled Unitholders with small holdings, SCA Property Group
may, after the Implementation Date, establish a sale facility
under which the Stapled Units held by relevant Small Stapled
Unitholders would be aggregated and sold on their behalf on ASX.
Under any such sale facility, unless Small Stapled Unitholders
elected in writing to retain the Stapled Units received under the
Distribution, their Stapled Units would be sold and the proceeds
of sale remitted to them. Brokerage and other transaction costs
of the sale of the Stapled Units under any sale facility would be
borne by SCA Property Group. If SCA Property Group decides to
put in place such a Sale Facility, full details of that sale facility will
be sent to Small Stapled Unitholders after implementation of the
Proposed Transaction"
 
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I don't think there's any doubt that this facility will be "put in place" in due course. Companies don't like the admin costs of a lot of small holdings and this is a fairly normal tactic. The "no guarantees" disclaimer is more to avoid any later claims re the timing and the price received, IMO.

;)
 

nulla nulla

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Re: SCA - SCA Property Group

..... If SCA Property Group decides to
put in place such a Sale Facility, full details of that sale facility will
be sent to Small Stapled Unitholders after implementation of the
Proposed Transaction"
In other words: "We sold your shares, here is your cheque, have a nice day".
 
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Re: SCA - SCA Property Group

In other words: "We sold your shares, here is your cheque, have a nice day".
Yes, a rather ambiguous sentence, but the "proposed Transaction" may also relate to the splitting of the properties from the parent company. Note that shareholders may elect in writing to keep their shares - which leads me to think that notice will be given to "eligible" shareholders first, ie now that the "proposed transaction" has been effected.
 

nulla nulla

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It is a little ambiguous. I guess the "proposed transaction" needs to be more clearly defined. It probably means the "seperation of the properties from woolworths" as distinct from the "onmarket sell off of the small unmarketable share holdings".

I expect the holders of unmarketable parcels will be invited to take up the offer of SCP selling their shares and sending them cash or the holders keeping the shares and buying more on market to build their holdings up to a marketable level? I expect SCP would reasonably write to the share holders with unmarketable parcels, extending the offer/options before the shares are sold off? :)
 
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Yes, that's how I read it. Would be in line with moves by other companies to be rid of unmarketable parcels.
 

nulla nulla

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SCP tapped $1.53 Wednesday and Thursday. Up $0.13 on the issue price of $1.40 (9%) in one week is a good start in anyones books. Those that got their full allocation through Woolworths or 90% of their ask through a direct application are doing better than those that had their applications scaled back through the Broker Firm allocations. Good to see at least one of the reits performing well.
 

nulla nulla

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I exited on Friday 21/12/12 at $1.545 taking a 10% profit on the issue price of $1.40. It would not surprise me if this share was to creep slowly higher next year, in a similar fashion to BWP and WRT after they were spun off.
 
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Re: SCA - SCA Property Group

I wondered the same thing myself. Looks like they'll organise a non marketable parcel buy back subsequent to issue but no guarantees. My son is the proud owner of $11.86 worth of these shares, quite useless.


:"It is expected that the Distribution will result in a large number
of holdings of Stapled Units with a value of $500 or less (that
is, less than a marketable parcel under the Listing Rules). The
Woolworths Directors understand that, in order to reduce the
costs and administration associated with servicing large numbers
of Stapled Unitholders with small holdings, SCA Property Group
may, after the Implementation Date, establish a sale facility
under which the Stapled Units held by relevant Small Stapled
Unitholders would be aggregated and sold on their behalf on ASX.
Under any such sale facility, unless Small Stapled Unitholders
elected in writing to retain the Stapled Units received under the
Distribution, their Stapled Units would be sold and the proceeds
of sale remitted to them. Brokerage and other transaction costs
of the sale of the Stapled Units under any sale facility would be
borne by SCA Property Group. If SCA Property Group decides to
put in place such a Sale Facility, full details of that sale facility will
be sent to Small Stapled Unitholders after implementation of the
Proposed Transaction"
Yes this is what exactly has happened. I received a letter in the post yesterday asking me to elect to keep them or else they would be sold and I'd receive a cheque.

I think I'm going to keep them and buy some more.
 
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Re: SCA - SCA Property Group

I have a tiny holding but I'm going to keep it because it happens to be the 5th company in my margin account and gives me extra LVR to all my holdings, despite the value being less than a slab of beer. lolz
 
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I've also received my letter, and I think I will grab some more of these.
 

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