Bottom line: Wates for the bulls
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.WATES City of London should be commended on still being around, unlike other City specialists, even to think about the next property cycle.
But staging a second cash call in nine months, a two-for-seven issue at 73p to raise pounds 31m, is further evidence that Wates does not have the critical mass to capitalise on improved conditions. As is the search for a pre- funding deal on a development site in Queen Street.
The fact that Mercury Asset Management has unusually agreed to sub-underwrite the whole issue if needed indicates a degree of enthusiasm for a share in the revival of the City office scene. But it is far from evident that it is right to hitch its wagon to Wates.
Vintners Place, a 260,000 sq ft development is still empty and will have to be refinanced next year.
A downward rent review on a building in Queen Victoria Street means that last year's 73p net asset figure was actually about 3p too optimistic.
That means that the rights issue has been priced extremely aggressively compared with a share price that closed 5p lower yesterday at 75p.
With no prospect of a dividend this year, leave it to the institutional bulls.
(Graph omitted)
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments