McCabe sells RBS Building in Scotland for £40m

[mickle-blade]

Found this on the Bladesmad site.
It appears our Chairman has done a bit of business by selling the old Union Building for £40m. Obviously his personal wealth has not increased by this amount but added to the wedge he received from Valad he cannot have had that bad a 12 months.
Perhaps a little of this will be released to buy one or two players in January.
We certainly need to !


http://business.scotsman.com/business/Glasgow-landmark--bank-building.6619665.jp

 

[SteelCity Blade]

Don't count on it.

 

[lenners]

Looks an odd sale, mebbes McCabe's struggling more than we know.

 

[broomhillblade]

Looks an odd sale, mebbes McCabe's struggling more than we know.

Not necessarily. Property developers tend to turn over their properties on a regular basis. Scarborough Properties developed the building in 2007. They presumably feel the market is right to cash in and move on.

 

[Sensiblade]

Not necessarily. Property developers tend to turn over their properties on a regular basis. Scarborough Properties developed the building in 2007. They presumably feel the market is right to cash in and move on.

any idea how much they paid for it in 2007?

 

[lenners]

Not necessarily. Property developers tend to turn over their properties on a regular basis. Scarborough Properties developed the building in 2007. They presumably feel the market is right to cash in and move on.

If you're getting £2.4m in rent guaranteed for several years and are sitting on an asset with a value that should increase in time, it seems odd.

 

[broomhillblade]

any idea how much they paid for it in 2007?

Sorry, not a clue.

 

[mickle-blade]

£40m sale, with bluechip tenants for the next 12 years paying close to £30m in rent over that period.
Good bit of business for the buyers at least.
As Len says, in a depressed property market it does seem to be an odd time to sell.
What we don't know is the cost of the original purchase and redevelopment.

 

[SteelCity Blade]

If you're getting £2.4m in rent guaranteed for several years and are sitting on an asset with a value that should increase in time, it seems odd.

I have to agree with lenners there. Seems an odd time to sell something like that when it is a standing earner. That might be reading too much into it but at a time when its a buyer's market, flogging something you take a high rent on seems to pose questions.

 

[Micalijo]

Looks an odd sale, mebbes McCabe's struggling more than we know.

Totally agree. Blue chip tennant in this day and age. Why sell unless you have serious cash flow issues elsewhere? Just a thought like. Germans awash with cash, need a sound investment to house that cash - it all makes perfect sense, to me.

 

[SotonBlade]

You all seem to think that goes directly into McCabe's pocket. It goes into the coffers of a separate company, of which McCabe is one of several other directors!

 

[lenners]

You all seem to think that goes directly into McCabe's pocket. It goes into the coffers of a separate company, of which McCabe is one of several other directors!

I'd be surprised if Scarborough isn't essentially McCabe. SUFC is a separate company of which McCabe is one of several directors. We know whose company it is though.

 

[Micalijo]

You all seem to think that goes directly into McCabe's pocket. It goes into the coffers of a separate company, of which McCabe is one of several other directors!

Not with you at all. Impossible to practically separate McCabe from the coffers of Scarborough. Yes Scarborough will account for the sale, pay any tax on any gains arising but the net cash is then available to pay off mortgages etc or use elsewhere in his group - anything left over after paying off the bank can be reinvested or taken as dividend.

 

[SteelCity Blade]

You all seem to think that goes directly into McCabe's pocket. It goes into the coffers of a separate company, of which McCabe is one of several other directors!

I dont think anyone is suggesting that soton.....it just seems a funny time to sell something like that, given the circumstances and for whatever reason its being sold for. As mic suggested, it could be in aid of a cash flow issue in one of his other businesses/ventures.

 

[beechblade]

I dont think anyone is suggesting that soton.....it just seems a funny time to sell something like that, given the circumstances and for whatever reason its being sold for. As mic suggested, it could be in aid of a cash flow issue in one of his other businesses/ventures.

It maybe odd, or maybe the offer was in the price range that they wanted to sell it on at, they may want the money to re-invest in another property or have seen some shiney new project to work on. I suppose unless they release anything it will just be pure speculation.

 

[SwissBlade]

Good on Mr McCabe, although whilst he's our Group Chairman I fail to see the link between the FC and this money... unless of course Big Kev says he wants to chuck some cash at the playing squad but thats not happening since Mr Robson's not our manager

 

[Deleted member 2102]

If you're getting £2.4m in rent guaranteed for several years and are sitting on an asset with a value that should increase in time, it seems odd.

How is the income guaranteed? Will UK commercial property values rise from here? Are there better opportunities for the 40 million that will generate a greater income in other areas of the World?

 

[Sensiblade]

this is mainly guess work, but maybe the lease's of the tenant's in the building are coming to an end and there is no guarrantee of them renewing so the block may be left empty or part empty after they leave to go elsewhere.
So McCabe knowing this offloaded the building as it will take a lot of work and capital to bring in new tenant's.

Probably wrong but it's possible.

 

[parisblade]

So Rooney is coming after all then. Well, well

 

[beightonblade]

Get ready for this .................... I'm going to defend McWobblegob.
He's taking a profit and in property he's redhot, maybe another deal is linked with it ?

 

[Micalijo]

this is mainly guess work, but maybe the lease's of the tenant's in the building are coming to an end and there is no guarrantee of them renewing so the block may be left empty or part empty after they leave to go elsewhere.
So McCabe knowing this offloaded the building as it will take a lot of work and capital to bring in new tenant's.

Probably wrong but it's possible.

No, sorry sensi. It has a blue chip tenant - HBOS - in situ for another 12 years at top dollar rent. He's flogged the crown jewels.

---------- Post added at 04:29 PM ---------- Previous post was at 04:27 PM ----------

Get ready for this .................... I'm going to defend McWobblegob.
He's taking a profit and in property he's redhot, maybe another deal is linked with it ?

Only Macca could get HBos to lend him wedge to buy it and re-furb it, then get HBOS to rent it off him and flog it for a profit in 3 years.

I reckon you're way out re profit BB. His luck has run out or perhaps he aint in control of when and what to sell as much as he'd like. Why sell now with blue chip tenant?

 

[Sensiblade]

No, sorry sensi. It has a blue chip tenant - HBOS - in situ for another 12 years at top dollar rent. He's flogged the crown jewels.

---------- Post added at 04:29 PM ---------- Previous post was at 04:27 PM ----------



Only Macca could get HBos to lend him wedge to buy it and re-furb it, then get HBOS to rent it off him and flog it for a profit in 3 years.

I reckon you're way out re profit BB. His luck has run out.

Were is the HBOS in situ for 12 years info?

 

[Micalijo]

http://business.scotsman.com/business/Glasgow-landmark--bank-building.6619665.jp

 

[Sensiblade]

http://business.scotsman.com/business/Glasgow-landmark--bank-building.6619665.jp

ok cool ty.
I'm sure McCabe knows what he's doing, h wouldn't be in the business he is and be doing multi million pound deals of he didn't.

 

[beightonblade]

heyup macalijo.............. McWobblegob does a reight lot of whealing and dealing with the Bank of Scotland ......... he's up to sumat !

 

[Micalijo]

Exactly - defo up to somat!! Huge web of intrigue and I am lovin it!!!!!!

 

[Deleted member 2102]

No, sorry sensi. It has a blue chip tenant - HBOS - in situ for another 12 years at top dollar rent. He's flogged the crown jewels.

---------- Post added at 04:29 PM ---------- Previous post was at 04:27 PM ----------



Only Macca could get HBos to lend him wedge to buy it and re-furb it, then get HBOS to rent it off him and flog it for a profit in 3 years.

I reckon you're way out re profit BB. His luck has run out or perhaps he aint in control of when and what to sell as much as he'd like. Why sell now with blue chip tenant?

How do you know they are in for 12 years. Break clause anyone?

 

[lenners]

ok cool ty.
I'm sure McCabe knows what he's doing, h wouldn't be in the business he is and be doing multi million pound deals of he didn't.

It's like the worldwide financial crisis prompted by those bankers never happened.

 

[Sensiblade]

It's like the worldwide financial crisis prompted by those bankers never happened.

and that has what to do with my post???

This seems a bit like a Richard Branson type deal.
He does this sort of thing all the time, sell off one virgin business to fund another newer one.
No one ever critisises him for his dealings.

 

[Micalijo]

How do you know they are in for 12 years. Break clause anyone?

Not sure what you're getting at.

You saying Germans would have forked out if they knew HBOS were walking out?