Ricoh Value - 6.4 million in 2012 (3 Viewers)

Nick

Administrator
Ricoh was worth £6.4m late 2012 based on no CCFC rent. Council court papers reveal a council report had stated this according to Les Reid.

What would it be worth now? What should SISU offer if this is true?
 

Hobo

Well-Known Member
6.4 million would be a good opener....cheaper than building new. you don't say what the 6.4 million actually buys you though....don't SISU want access to all revenue from the city? Sorry being silly and pissed off
 

Grendel

Well-Known Member
Packet of crisps?
 

Nick

Administrator
If it is only worth £6.4m then doesn't it mean they are in negative equity? I wonder who has given the figure of what it is worth.

If the council do value it at
£6.4m then why should SISU pay off the mortgage for them if it isn't worth that?

If I had a house worth 100,000 but my mortgage was for 2.4 million it doesn't mean the house is worth 2.4 million does it?
 

Pubboy

New Member
Ricoh was worth £6.4m late 2012 based on no CCFC rent. Council court papers reveal a council report had stated this according to Les Reid.

What would it be worth now? What should SISU offer if this is true?

What is the valuation for? Is it the freehold, leasehold, CCC portion of ACL, bricks and mortar only, does it include goodwill for the business as a going concern (excluding CCFC of course) ?
 

kevinleftpeg

New Member
it would be worth buying at £6.4m just to knock it down & build on it. £6m is way off the mark in the commercial real world IMHO.

Must be just the seats, grass & dugouts
 

DazzleTommyDazzle

Well-Known Member
If the Ricoh is worth anything anywhere near £6.4m, why would Otium be planning to build a much smaller ground for a reported £25m?
 

Broken Hearted Sky Blue

Well-Known Member
If it is only worth £6.4m then doesn't it mean they are in negative equity? I wonder who has given the figure of what it is worth.

If the council do value it at
£6.4m then why should SISU pay off the mortgage for them if it isn't worth that?

If I had a house worth 100,000 but my mortgage was for 2.4 million it doesn't mean the house is worth 2.4 million does it?

So 18 months ago Sisu were willing to take over the mortgage and buy Higgs share but now it should be just given to them?
 

Nick

Administrator
This is on the CET article:

The Ricoh was valued at £6.4m late last year, the council's own High Court papers reveal. They state the valuation was also contained in a council report - yet councillors authorised £14m of taxpayers' money to buy ACL's mortgage.As we previously revealed in October, an independent valuation for ACL by consultants CBRE place the Ricoh's worth at around £6million to £8m, as ACL's bank had stated.
The club and Sisu chief executive Joy Seppala have called for a freehold sale of the Ricoh and surrounding land based on current independent valuations from both sides.
The court heard the club's contention it had effectively paid two-thirds of the £1.3million rent during their "rent strike".


This included more than £500,000 of reserves withdrawn by ACL from a rent deposit account, and over £300,000 in under an "interim rent" arrangement.
 

bigfatronssba

Well-Known Member
If it is only worth £6.4m then doesn't it mean they are in negative equity? I wonder who has given the figure of what it is worth.

If the council do value it at
£6.4m then why should SISU pay off the mortgage for them if it isn't worth that?

If I had a house worth 100,000 but my mortgage was for 2.4 million it doesn't mean the house is worth 2.4 million does it?

Using that argument then CCFC is worth around negative £60m.

Why didn't sisu sell when they had the chance?
 

skybluetony176

Well-Known Member
just to clear things up. its the lease hold that is worth £6.4M, the bit the club need for FFP

not the free hold, the bit joy needs to satisfy her investors.
 

bigfatronssba

Well-Known Member

oldskyblue58

CCFC Finance Director
Think the report they are referring to is the valuation CBRE did for Yorkshire bank to value the security for its mortgage. Such valuations are often discounted to something much less than open market value it may be the case here too. The question is did the council take an acceptable risk in the security they obtained within the local government rules - going to depend on the instructions for valuation i would have thought and what the rules for making Council loans are. In theory Councils have a discretion as to where they can invest and it isnt restricted to government bonds (ie little risk) but did they act correctly here?

Late 2012 ACL were under a lot of cashflow pressure, turnover apparently half of what it is now apparently, not surprising there was a very conservative valuation. You also have to look at who it was done for and why. Similarly if there was a plan to distress ACL to get the loan paid off cheaply you wouldnt want a valuation that said the loan was secure would you?

Just to be clear I am not saying the valuations were false or illegal or anything less than professional. A valuer will value on the basis of instructions he was given. We do not know those terms or the conditions in respect of the valuation

Since then ACL have restructured, cut normal operating costs and increased turnover. In terms of the business then the turnover increase if it is maintained at those levels adds value to ACL. If the loan set aside (quashed) and CCC has to revisit its processes then they could still come to the decision to lend the money. It is not as clear cut as saying it was only valued at £6.4m
 
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Pubboy

New Member
Based on pure financials and this apparent valuation, doesn't appear to be any motivation to sell at this time then.
 

Nick

Administrator
Think the report they are referring to is the valuation CBRE did for Yorkshire bank to value the security for its mortgage. Such valuations are often discounted to something much less than open market value it may be the case here too. The question is did the council take an acceptable risk in the security they obtained within the local government rules - going to depend on the instructions for valuation i would have thought and what the rules for making Council loans are. In theory Councils have a discretion as to where they can invest and it isnt restricted to government bonds (ie little risk) but did they act correctly here?

Late 2012 ACL were under a lot of cashflow pressure, turnover apparently half of what it is now apparently, not surprising there was a very conservative valuation. You also have to look at who it was done for and why. Similarly if there was a plan to distress ACL to get the loan paid off cheaply you wouldnt want a valuation that said the loan was secure would you?

Just to be clear I am not saying the valuations were false or illegal or anything less than professional. A valuer will value on the basis of instructions he was given. We do not know those terms or the conditions in respect of the valuation

Since then ACL have restructured, cut normal operating costs and increased turnover. In terms of the business then the turnover increase if it is maintained at those levels adds value to ACL. If the loan set aside (quahed) and CCC has to revisit its processes then they could still come to the decision to lend the money. It is not as clear cut as saying it was only valued at £6.4m

So is ACL effectively the lease? So to sell the lease they would be selling ACL?
 

Houdi

Well-Known Member
Ricoh was worth £6.4m late 2012 based on no CCFC rent. Council court papers reveal a council report had stated this according to Les Reid.

What would it be worth now? What should SISU offer if this is true?
So worth about £66.4 million more than CCFC Then.:eek:
 

BinleyBlue

New Member
These valuations are no more than opinions based on assumptions. A true value can only be established when a willing seller and a willing buyer agree a price, by negotiation, through an auction or after a tendering process. Until that happens, valuations mean very little and can vary enormously. Just look at the Post Office sell off. What is the value of the Post Office? The amount placed on it when the Government offered it for sale? No, higher than that. The amount represented by current stock market prices? Probably lower than that, as there is still some "froth" in the market. But we probably have a better idea of the value of that than we do with the Ricoh. Anyone who purports to place a value as precise as £6.4 million is just flying a kite. It would only be the value if the Council would sell for that (I don't think they would) or if someone would pay that (I think many would - which suggests it is far too low a figure.)
 

skybluetony176

Well-Known Member
So is ACL effectively the lease? So to sell the lease they would be selling ACL?

i questioned this with les reid by email after he wrote about the value and he confirmed that the value was indeed for the lease and effectivally ACL.

i've deleated my emails from les now but i did start a thread on here and posted them in full if anyone can be bothered to look.
 

asb

New Member
The problem is that there are more parts to buy in the Ricoh which are not being discussed. It is being made out as if it as simple as a house sale.

It is not that clear which part that valuation refered too. The only solution is a new valuation based on a purchase of all parts. I am betting it will be more than £6.4m

Then again lets all pretend it is as simple as Mr Reid makes out. That way there is still a flicker of hope that they could do a deal.

With your house Nick it would be like me having your garden valued and then offering that as the price of the house.
 

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