Having been rescued from financial disaster on previous occassions, new funding was put into Mcarthy&Stone to enable them to keep trading. In recent months it is understood that the investors sought out private equity funds with a view to sell the business. When this approach failed, knowing they could not float the entire business, the investors have decided to embark on a partial float. They hope to raise around £90m valuing Mcarthy& Stone at £980m. Whilst they emphasise that they want to invest £2.5b in future projects, it is more probable that this £90m is to repay outstanding loans.
As has been shown by many that have bought into the Mcarthy&Stone Retirement Dream, it has turned into a financial nightmare, anyone considering investing in Mcarty&Stone should ask some serious questions. For example, What is the true value of the property portfolio? How much of the valuation is based on the actual property and how much has the valuation been enhanced by including "add on services?"
Is the retirement market changing? ie are residents becoming more aware of the ways they have been moneterised to fund freeholder debts? Are they taking action against being exploited?
When a company is put under pressure by lenders, how do they increase their earnings? Anyone at Peverel/Firstport or Freemont Property Managers knows the answer.
Is a part float a part sunk?
