The Wilsons - 875 buy to let property empire

Trollfever

From:

27 November 2008
Grainger plc
(“Grainger” or the “Company” or the “Group”)
PRELIMINARY RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2008
Grainger plc, the UK’s largest quoted residential property owner, today announces its preliminary

results for the year ended 30 September 2008.

Covenants

Our core facility has two covenants covering loan to value (“LTV”) ratio and interest cover.
Under the first, a LTV of 80% could lead to default of the agreement. At 70% LTV, purchasing
restrictions apply. To a large extent the business is currently operating under the restrictions by
cutting back on new acquisitions. LTV on the core facility at 30 September was 66% although
this was reduced to 64% shortly after the year end by the early conversion of 78% of our
convertible bond. We are able to take action to help keep the LTV ratio down, the main one
being asset sales. We estimate that if we are able to maintain sales proceeds in 2009 at the
same level as achieved in 2008 then UK asset values as used for covenant purposes will have
to fall by c.24% in the year ended 30 September 2009 for us to reach 80% LTV.
Under the second covenant, our interest cost must be covered 1.25 times by net cashflow
before interest. As at 30 September the ratio stood at 2.2 times (2007: 2.8 times). This
covenant is calculated by reference to the previous 12 months results and, given the cash
inflows that we have already achieved to date, we are very confident that this covenant will be

met at the next testing period in March 2009.

We maintain regular and constructive dialogue with our banking group and keep them fully
informed of covenant status. Constant monitoring of these covenants ensures that we can take
early and proactive measures, for example, asset sales, to prevent default levels being

reached. This remains a key objective for the near and medium term.

Yoshua

If the Wilsons sign on JSA will the Govt pay the interest on their debts?

PasturesNew

Yoshua wrote: »

If the Wilsons sign on JSA will the Govt pay the interest on their debts?

I think they're of retired age, so no JSA.

The irony would be that a lot of the staff in their local dole office are probably renting from them ... and will have suddenly found themselves out on their ear with the portfolio sell off.

So, it would be an interesting scenario if they went down for their dole and got a smack on the nose

_bankrupted

so pushing nearly a year on from the last post (well in a few months!!).

Have they being declared bankrupt yet? Realistically their porfolio must be down by another 10% and growing.

poppy10_2

_bankrupted wrote: »

so pushing nearly a year on from the last post (well in a few months!!).

Have they being declared bankrupt yet? Realistically their porfolio must be down by another 10% and growing.

Shhh... don't you know we are well into the recovereh? Everything is going to be fine.

ad9898_3

_bankrupted wrote: »

so pushing nearly a year on from the last post (well in a few months!!).

Have they being declared bankrupt yet? Realistically their porfolio must be down by another 10% and growing.

I don't think they are going to go down, I suspect the lender (the government) will more than likely prop them up whatever the cost to avoid bad publicity, imagine what would happen to confidence in the whole BTL game if this pond life were allowed to go bust, most banks would likely shut up shop completely on BTL causing housing market mayhem.

We've seen so far that the government strategy is to prop up the housing market bubble whatever the cost to this generation or the next or the one after that.

experience08

Any further news on the Wilsons?

Wheezy_2

experience08 wrote: »

Any further news on the Wilsons?

Woodrow Wilson died a long time ago and Brian Wilson is still in the Beach Boys I think.

LisbonLaura

experience08 wrote: »

Any further news on the Wilsons?

Their press agent still mouths-off here most days.

chucky

experience08 wrote: »

Any further news on the Wilsons?

i'm sure they're fine and doing well financially.

they're probably more well off than many on this forum would dream to be.