COMMENT by Oscar Properties,, now tvarbromsar at the eleventh hour, no save, hopefully, lagenhetskopare, suppliers, and banks, and may be very risky loan in Stockholm a long time, the most expansive bostadsprojektor. For the shareholder, the location is close to pitch black.
Nollranteeran established in Stockholm, already, the upward bostadsrattspriser was almost sure envagsmarknad, with all the shiny, and at the same time controlling the risk. In the autumn of 2019 is now, once again, a situation in which the speed lanedrivna increase in value that has been built up is being threatened by the gravitational pull of the downward path.
That, in a downturn, with the potential for freezing, sooner or later it would become inconvenient for the most of the expansive bostadsrattsprojektorerna was in the world of Business there early on (with the benefit of hindsight, when the party was going on which is the best).
No, at least right now, a lot of pain for the tisdagsmorgonens rapporteur on the situation of Oscar Properties. They did the best with the gas on a large scale, Stockholm’s premium and lyxsegment, and the company’s rise and current problems, at this point, just as in the headlines, as speculation about its imminent fall.
CRIMPING GIVES A GOOD, BUT RESTORATION SERVICES
The third quarter report, in summary form, in the box, it shows that Oscar Properties, defensive, started to supply to the throttle construction starts, and the shrinking of the portfolio.
(A) and (O) to the company’s future is, of course, is to make the law of supply vis-à-vis the customers who have reserved or have already purchased housing. This applies both to the build quality, which bostadsrattsekonomin of the organizations that have been created, once they are handed over to the customer. The customers ‘ interest in buying new homes, “on drawing”, is very much dependent on the brand to be perceived, which are not only luxurious, but are also given as regards the finances and the securing of quality guarantees.
The defensive side is also very good in terms of Oscar, the Properties of the creditors. Most of the banks, with its strongest assets, and regular opportunities to terminate or renegotiate the relationship. However, even for the more daring hograntelangivare in the obligationsklasserna, as well, they can always threaten to put the building into bankruptcy if they don’t get paid on time.
It is also good for the suppliers with the legitimate claims and needs to be paid in full for the unfinished tasks, before they begin to count on the possible future of the lower byggaktivitet. The same is true for partners who would like to see her projektinvesteringar completed without interruption and within budget.
The stock market’s doubters, however, have already figured out that the defense is not necessarily a good thing, those who are already most available to the shareholders:
- Stamaktieagarna depends on uppsidespotentialen is not to be limited to the amount, which is exactly what the company is doing now. And in inbromsad production, and the future of the ”pie” can be shrunk through the sale of projektandelar (most recently with the sale of half of the The Helixproject Slatto and Fastpartner). Secondly, by expanding konverteringserbjudanden to the preferred stock and the lender, giving all the more diluted through the increasing number of additional ordinary shares to all the poorer classes.
- Preferensaktiernas the risk is increasing, at the same time, the concessions made to the lender with the collateral, including the fact that the company is selling off assets to make it a priority to pay off and pay back the skuldutrymme, which may not be replaced with a new one.
Finally, it should be noted that the equity / assets ratio target, so it hangs projekttillgangarnas the value of the so-called “going concern”-based on an assumption of continued operation. The value of the assets in a stressed or forced tvangsavveckling is uncertain, and entirely dependent on the market’s appetite for risk.
In addition, present the warranties to, and risks to the delivery of the compounds to a bostadsrattsprojektor created. They represent a possible risk, which, if it goes bad, can reduce the reported profit and shareholders ‘ equity, and cash flows much later than the time when the profits are taken up, and the payments flowing in.
THE HIGH-TIME OF THE BOSTADSRÄTTSSKYDDET?
Nothing ventured, nothing gained in the stockholmsk bostadsrattsprojektering?
Well, maybe because of the creative and transaktionsglada grundarentreprenorer. Most definitely so, and their well-paid advisors, who cheered on and made a near risk-free profit, both to build the ‘ surge, as now, to take care of their restructuring measures, and, perhaps, also on how to deal with any future cases.
No matter how, and if, Oscar Properties to clear it up its the pressure of the situation, in the movement’s projects and the finansieringsled, so it will be interesting to see how the financial markets are choosing to deal with the settlement of a hogriskprojektor in the forest. There can be a ripple effect in both personal byggleverantorer, and the source of funding.
To the bad at risk of the biggest single losers in the market, to be weak, protected the households in which they are produced to be sold on, or has chosen to speculate in, to a large extent, the failure bostadsrattsdrom. Something that is surely uppermost in the minds of the treasury and the housing minister Per Bolund (MP) from time to time.
As regards shareholders, you should “design the drawing”model, the risks and the weaknesses can hardly be a news story. Here are the hot venture-capital and for good reason.
ONLY ONE (1) NETTOBOKNING IN THE QUARTER
From the perspective of a major helhetperspektiv of the transaction than the shareholders, was the most positive features of the Oscar Properties report:
- Current total production is: The current production, however, 202 the housing kvartalsskiftet (total production), down from 963 in order to a year ago, at the end of the year. No additional housing is produktionsstartades in the second quarter.
- Completed housing units total: The company has, over the past four quarters, managed to complete the project, with a total of 779 housing units, of which 351 in the production and 428 of the konverteringsprojekt. They have basically sold out and the sales rate is about 99%.
It is more or less neutral.
- Housing units sold in total: Sales for the third quarter of 2019, the abode of eight (8) dwellings in the company’s production of Oscar the Properties of both the nyproducerar to convert the old house). It brought about a reduction from 15 last year.
- The planned production: The company has a full 2 338 housing units at the planned ”bokningsstartad” construction, which has yet to commence. Bokningsgraden has gone up to 22 per cent, as against 10 per cent at the end of the year.
- The results and cash flows of: The group’s profit before tax rose to eur 44 million in the quarter (-131 of the fjolarsperioden). It was, however, the +74 of the income from the sold property developments (0 fjolarsperioden). For the quarter, cash flow from operating activities was a loss of 111 million, which was offset with a cash flow from operating activities of eur 95 million (of which +100 million from the disposed of property developments).
- The financial position of the group: Interest-bearing liabilities as of kvartalsskiftet was just under sek 1.3 billion, in nominal terms, and the equity / assets ratio stood at 30 per cent. After the period has, so far, preliminarily, sek 27 million of the bonds were converted into ordinary shares of the company’s most recent volunteer konverteringserbjudande.
- Alternative uses: The company says the probe further about the possibilities of doing office or corporate apartments of the elements of the project.
- Sales in the on-going production: The sales rate of the current output stays at 47%. Especially the projects of the Dg is small and the project is now divided in four terraced houses, all of which have been sold, and, in part, to the 60 apartments, which will be a “business hotel” (which is completely left unsold before the intended completion date for the second quarter of the next year).
- Booked (and cancelled) housing units-total: Only one (1) new housing in the planned new construction was recorded in the net for future sales in the quarter, compared to 4 in the last year. There are 3 apartments are booked on gross basis, but in 2 of the apartments avbokades, as it were, the net of one (1) of the housing.
- Gasklockan-out: The company is referring to its decision not to take up the project Gasklockans right to build in the North of the Djurgardstaden at the time, according to the agreement, to be in conflict with the city of Stockholm, in what the company describes as shortcomings in the implementation of the removal.
- Liquidity: At the checkout, there is a 70-million-dollars. By Oscar Properties,, expect the actual the business’s working capital requirements for the next 12 months at the moment, 1,66 billion for the year. The solution the company is planning on, is to manage to extend the maturing bank loan of 600 million euros, the company’s customers agreed to separate construction loans of less than 200 million, and secondly, even with a planned rights issue of ordinary shares, of eur 249 million, and, secondly, the sale of more than one part of the existing stock and, secondly, the sale of the 12 unsold condominiums, as well as the ”employee of the partners of the project”. In addition the need for an ”external financing” of the 600 million dollars for the access to the above-mentioned Gasklockan project.
Source: Oscar Properties, report to 2019