Speymill Deutsche Immobilien Property Company non-executive director Jim Mellon has been buying shares in the AIM-quoted property investment company just after it has agreed to take over the management of its own property portfolio.
Mellon bought 5m shares at €0.05772 a share and 2m shares at €0.06 a share. That is a total investment of €408,500. Mellon owns 13.82% of Speymill Deutsche as well as having a 44.8% interest in Speymill, whose subsidiary is giving up managing the Speymill Deutsche property portfolio in Germany.
Mellon is also lending €2m to Speymill Deutsche until 15 November 2010. If there is a fundraising it will either be repaid or converted into shares at the fundraising price.
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The decision to bring management in-house was taken in order to cut costs and make it easier to renegotiate bank facilities.
Property investment manager and construction company Speymill has reached heads of agreement with Speymill Deutsche about the termination of its investment management agreement and the sale by Speymill of its subsidiary GOAL to Speymill Deutsche.
Speymill will receive €7.851m in compensation plus €1.14m in fees for the transfer period. Payment will be in the form of property assets and their associated loans.
Speymill will receive the net asset value of GOAL in return for its sale - it is currently €1.9m. GOAL's construction business is excluded. The payment will be in the form of a convertible loan note. The interest rate will be equal to the two-year German bund plus 1.5 percentage points.
Speymill Deutsche's property portfolio was valued at €1.44bn at the end of 2009. The net asset value was €0.6523 a share at the end of 2009 so Mellon's buying price is at a significant discount to that NAV. However, any recapitalisation of the company is likely to dilute the NAV figure.
Top Director Buys
Speymill Deutsche Immobilien (SDIC) Director name: Mr James (Jim) MellonAmount purchased: 5,000,000 @ € 0.0577 Value: € 288,500
Speymill Deutsche Immobilien (SDIC) Director name: Mr James (Jim) MellonAmount purchased: 2,000,000 @ € 0.06 Value: € 120,000
Symphony International Holdings (SIHL) Director name: Mr Anil ThadaniAmount purchased: 58,617 @ $0.60 Value: $35,170
Global Petroleum (GBP) Director name: Mr Peter BlakeyAmount purchased: 111,559 @ 9.26p Value: £10,330
MS International (MSI) Director name: Mr Roger Lane-SmithAmount purchased: 15,000 @ 115.00p Value: £17,250
Top Director Sells
Renishaw (RSW) Director name: Mr D John DeerAmount sold: 300,000 @ 722.00p Value: £2,166,000
easyJet (EZJ) Director name: Mr Andrew HarrisonAmount sold: 388,950 @ 430.57p Value: £1,674,702
Domino Printing (DNO) Director name: Mr Nigel R BondAmount sold: 60,000 @ 468.25p Value: £280,950
easyJet (EZJ) Director name: Mr Andrew HarrisonAmount sold: 52,232 @ 431.42p Value: £225,339
Beazley Group (BEZ) Director name: Mr Clive WashbournAmount sold: 172,395 @ 123.00p Value: £212,046
Norman Hay (HNN) Director name: Mr Peter HayAmount sold: 144,925 @ 92.30p Value: £133,766
Norman Hay (HNN) Director name: Mr V P BellantiAmount sold: 131,357 @ 92.30p Value: £121,243
Domino Printing (DNO) Director name: Mr Garry HavensAmount sold: 20,000 @ 458.50p Value: £91,700
United Utilities Group (UU.) Director name: Mr Charles CornishAmount sold: 8,919 @ 537.50p Value: £47,940
Hornby (HRN) Director name: Mr Frank MartinAmount sold: 18,674 @ 139.00p Value: £25,957
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