McCabe sells RBS Building in Scotland for £40m

[DuncDisorderly]

You lot need to get a block booking at the psychiatrist. You're all fecking paranoid.

Like Beighton, I'd trust KevMc's judgement on property over anything deduced by the bar-room experts. He is the top kitty...

 

[BornOnShorehamStreet]

The bank might be trying to sell on the lease...

 

[lenners]

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.

Because you applied exactly the same logic that was applied to those banks, including some of the biggest around, who surely should have known what they're doing because they were doing 'multi-million pound deals'.
Except they didn't.
McCabe's created a £50m debt for our club and a team heading for relegation to League One.
I'm not sure there's a great deal to suggest a businessman who really knows what he's doing, is there.

 

[blades1889]

he sold majority of his share in 1 of his business for £850million not long back. Surely he can reinvest some money to let speed bring in a few players in?

 

[Deleted member 2102]

Not sure what you're getting at.

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

I was simply pointing out that you have no way of knowing that the tenant would be in situ for the full term of the lease unless you are privy to the contract. Its not a huge stretch to imagine Lloyds slimming down its real estate commitments as it looks to refloat in the future?

 

[Robbie]

I was simply pointing out that you have no way of knowing that the tenant would be in situ for the full term of the lease unless you are privy to the contract. Its not a huge stretch to imagine Lloyds slimming down its real estate commitments as it looks to refloat in the future?

It's a good point.

LBG own a number of the buildings of which they are situated. It would make sense to find a way out of the ones they are leasing to cut down on costs.

Can we edit the title too? BoS and RBS are 2 totally different groups.

 

[Micalijo]

I was simply pointing out that you have no way of knowing that the tenant would be in situ for the full term of the lease unless you are privy to the contract. Its not a huge stretch to imagine Lloyds slimming down its real estate commitments as it looks to refloat in the future?

You could say that about any tenant though. I struggle to think of a better tenant than BOS in a prestige building in the biggest city in Scotland. If I had a commercial property portfolio I would be hard pushed in this climate to think of a better set-up. Can he get better than a 6% yield elsewhere - very unlikely. Is he in deep cash flow difficulties - it's not a huge stretch to imagine that.

 

[Deleted member 2102]

Or put another way you would happy to be long a building in one of the poorest areas of Western Europe that is currently let to a failed bank that has HQs in London, Edinburgh, Halifax and a large presence in Glasgow. The 6% yield will be incorporated into the sale price of the freehold. I am not suggesting the KM does or does not have cash flow difficullties more that selling a building at the moment wouldnt sugggest to me that he does have cash flow problems. I would suggest that better opportunities exist in Asia (he has just opened an Aussie operation) and elsewhere in the UK especially London.

 

[Micalijo]

Or put another way you would happy to be long a building in one of the poorest areas of Western Europe that is currently let to a failed bank that has HQs in London, Edinburgh, Halifax and a large presence in Glasgow. The 6% yield will be incorporated into the sale price of the freehold. I am not suggesting the KM does or does not have cash flow difficullties more that selling a building at the moment wouldnt sugggest to me that he does have cash flow problems. I would suggest that better opportunities exist in Asia (he has just opened an Aussie operation) and elsewhere in the UK especially London.

Things is SE10, if he can get say 8% yield on another building in London, he will have to pay more for it - as you say it's built into the price. Also, is it the time to swap a blue chip tenant for a gamble on a development of a shpping centre in Brisbane? - I don't think so but I take your point that yes potential is higher in Asia and BOS have not had a good few years to put it mildly. You've also got to remember that BOS will have loaned him the dosh in the first place and I can't quite get my head round that. I assume rather than write a cheque out for £2.4m rent every year they have knocked £2.4m off the amount owed to them from Scarborough. I imagine BOS wanted their wedge back quicker than £2.4m per annum, possibly because McCabe owes em alot elsewhere and they 9BOS) were getting into dangerous territory? My take on it is that BOS forced the sale and that Macca aint quite in charge of his destiney as much as some think. Pure speculation etc etc.

 

[DuncDisorderly]

Why don't you send an e-mail and ask him instead of coming up with a whole (unfavourable) scenario based entirely on guesswork?

Personally I think he's sold it so he can invest in the Bavarian Custard Mines. Wibble...

 

[Micalijo]

Why don't you send an e-mail and ask him instead of coming up with a whole (unfavourable) scenario based entirely on guesswork?

Personally I think he's sold it so he can invest in the Bavarian Custard Mines. Wibble...

What a great idea - I'm sure I'll get a full reply, possibly with paperwork to prove what happened. I'll do it now.

You spent a substantial amount of time on here talking blandly about a chill wind blowing through football and how our great chairman cannot be held responsible for our collapse given the world economy etc etc yet now you appear to deny that a forced sale is any kind of possibility. A man of your intellect should be able to deduce that a forced sale is many times more likely than McCabe cashing in and re-investing in better projects.

 

[Flatulent_Bob]

But surely Mica using the same logical, jumping to conclusions theory you could also say that he has done it in order to pump it all into a transfer kitty to make sure we are in the Premiership.

Neither are likely but you can deduce either from the limited information available.

 

[Micalijo]

Can you exmplain this Robert, anyone? I suspect the cash will not be used to fund a promotion challenge.

http://www.heraldscotland.com/business/corporate-sme/pair-quit-board-of-top-property-group-1.926766

This article says that the Glasgow property is a JV between Valad and BOS (Lloyds group). It says Valad acts as a fund manager whilst BOS owned the property assets.

Scarborough bough the property originally and did it up. Scarborough then sold out to Valad. Valad went tits up and had to go in with BOS.

I'm not all clear what McCabe had to do with the sale at all given he has not involvement with Valad anymore.

 

[Sensiblade]

Can you exmplain this Robert, anyone? I suspect the cash will not be used to fund a promotion challenge.

http://www.heraldscotland.com/business/corporate-sme/pair-quit-board-of-top-property-group-1.926766

This article says that the Glasgow property is a JV between Valad and BOS (Lloyds group). It says Valad acts as a fund manager whilst BOS owned the property assets.

Scarborough bough the property originally and did it up. Scarborough then sold out to Valad. Valad went tits up and had to go in with BOS.

I'm not all clear what McCabe had to do with the sale at all given he has not involvement with Valad anymore.

It all goes on which article you believe, The Scotsman in the OP that stated McCabe & Scarborough owned the building or this one the says he didn't.

 

[Studge]

So Lloyds Banking Group are classed as a blue chip tennant once again ?