This stock has doubled its nav in under a year! From 101p at flotation to 200p in 11 months. And the growth is set to continue. The shares floated on Ofex at 40p last September with a nav of 101p. At results that rose to 121p and since then has reached 200p. The shares at 109p stand over 45% below nav while peers trade at 20% below to 10% above. Market cap 10.9 million. Pays dividend of 3.2p. Their borrowings are fixed for a 25 year period and they have 4.7 million in the bank.
It is in commercial property, (which is not beset by the same worries over the domestic housing market). They bought a Safeway store last year for 8.9 million, it had a book value of 11 million at results and after a rent review they sold it for 14.8 million a profit of 5.9 million in a single deal for a sub-11 million market cap company! Amazing!
90% of clientelle are top 350 UK companies and government departments. Superb. They buy properties which have undervalued rentals get a review done and because commercial property prices are linked to rental values can sell it for a tasty profit. And this simple business model has exposed a huge hole in the market and as such is also pretty recession proof.
There is the posssibility of a takeover which given modest book values would I think have to be close to the 200p nav, perhaps 180p, (2 takeovers recently in sector).
Competitive mms are now on Ofex so most brokers should be able to get you shares (some may need more badgering than others though!). On any other market I believe these shares would trade at the very least at 150p some 35% above where they are presently.
Currently given latest numbers and a modest 5% rise in their portfolio annually which would add another 21p per share, nav should grow at approx 50p per year minimum from here. That's without any profitable sells
This is going to become a very big company, i have no doubt atall.
My biggest single holding and very much for the long term with a lovely dividend income to boot.
EDIT to add that just been looking again at last report, salaries total under 57k a year - in total - with just two 'employees'.

Post temporarily removed by moderating staff pending clarification...

How is this related to GSC?

Thanks SB, I saw the post too. Despite knowing GSC very well indeed and having communicated with the CEO Mark Rubin many times, I look forward to further clarification from 'peerscarter' too.

Thought not, peers................
................ I guess the lack of added interest in this one may be down to its presence on ofex, which i can understand, but given that Winterfloods, Hoodless and Teathers now all make a market in ofex, it is possible to pick up more stock more easily. You may have to pay a little above quote but given this is 45% below nav (and the shares would need to rise 80% to get to nav) worth doing imho.

Interesting Tempus article in the times recently pointing out Hammerson Brit Land and others around 15% below nav yet still attractive.

And this one has quality management.

I first highlighted this at 40p last September elsewhere when they arrived on Ofex. Glad to say I have only added to my holding and see no reason not to hold for years. Now 112.5p. Today's interims just add to the attractions. It's a fantastic long-termer.

1) Rent income plus bank interest from cash approximately balances bank repayments, expenses and tax. In that sense close to break even. (Though of course as that means repayments fall, nav rises, see point3)......BUT:
2) 3.8 million profit above book value on Tesco store sale (already concluded) will add 38p per share to nav in the second half. see 'Subsequent event'.
3) Bank repayments will fall by 1.5 million in the second half adding another 15p per share to nav.
4) Commercial property has been rising by over 10%p.a. If we assume only half of that in 2004 (5%) the next six months should see 2.5% added, ie 1.25 million to the property valuations adding another 12.5p per share to nav.
5) So for year end 2004 results on these modest numbers the nav assuming no profit from other deals in the interim, will be spectacularly higher at over 200p.

And more important, their way of identifying properties to buy is reaping fabulous returns and I believe is why this one will show dramatic growth in years to come. This is typical of what is underpinning the performance:
Quote:
"the 100 bedroom Days Hotel and Damons
Restaurant in Derby for GBP 5.7 million on a yield of 7.75%. For this style of
hotel operators are paying approximately GBP52,550 per room which leads your
Board to believe that this property would value substantially in excess of the
purchase price."

It might sound a bit crude but they are buying from lazy landlords who don't value their properties correctly and sell them on the cheap. GSC know how to extract maximum value.

Important to realise commercial property valuations have nothing to do with the domestic housing market.

One added comment, it seems very clear (at least to me) that management -who I have had considerable contact with - are superb.

Further I believe these comments are very modest. As I said in an earlier post, Mark Rubin told another site that nav had touched 200p in August (today's numbers were to end June), so I think we can go substantially higher.

GSC: The demand continues at this level.

Friday 1st October 2004, the directors of GSC Property Holdings plc
completed the following further transactions in the 1p ordinary shares in GSC
Property Holdings plc.

Mark Rubin sold 5000 shares at 112p
Anthony Rubin sold 7000 shares at 112p
Linda Rubin sold 2,500 shares at 112p

The sales were made at the request of the OFEX marketmakers to satisfy demand
in the market.

Stock set another all time high this week at 115p, a real ofex rarity these days, and that despite the doubts (now sorted) about Ofex's future.

Still way undervalued relative to sector and plenty more to enjoy.

Brought to top for shorecrab. Another new high today (one, yep one, downday so far this year! )

Hmmmmm peachy. Thanks again EC. Just shows the simplest business ideas can be the best. I'll talk to Hoodless tomorrow.

SC you should have a p-m.

Cheers got it SC.
Up another 6p today to another new high and on excellent volume.

Stock has two bagged since float (my entire holding from various buys on average hit 'bagger' today! ).

I expect more superb deals like the ones we have already seen over the next few months/years and will be keeping all my shares. Think I have said before this is quite genuinely part of my pension policy!

EC, I'm gonna send you a PM. Give it a while though 'cos I haven't composed it yet!

After going quiet, up yesterday and today. There have been a few 10k buys but just before the close today a trade of 22,500 shares bought at 132p (2p above quote). Nice! Another all time high.

And there's me thinking it hadn't moved! It seems that in the case of Ofex shares, the SC Trading screen isn't able to either show the names of the stocks purchased, or update when there's a price movement. Oh well, thanks EC, I'll have to keep having a look at Ofex for the latest.

After a quiet spell comes an absolutely superb announcement today and a shrewd use of some of their reserves. Healthy income and guarantees from this new string to their bow. This move into business ownership hints of further ambitions too. The last paragraph is an apt reminder of the value too in the share price.

Class, pure class.

"GSC Property Holdings plc has exchanged contracts for the purchase of the
Holiday Inn, Plymouth for a total consideration of GBP1.8m.


The Holiday Inn is a 112 bed hotel, located in Plymouth Ho with views across
Plymouth Sound. The hotel generated profits before tax and depreciation of
GBP538,000 to 31/12/04, and this acquisition marks the first move by GSC into
direct business ownership.


Following the completion of the transaction, the hotel will be re-branded under
the "Quality Hotel" franchise, and GSC will appoint Choice Hotels Europe Plc
(C.H.E. Group Plc) to manage the hotel operations for a fixed management charge
and a profit-related performance fee. The management arrangement with C.H.E.
Group Plc will guarantee GSC a minimum profit before tax of at least GBP200,000
per annum. The directors of GSC are confident, however, that the hotel will
deliver profits substantially in excess of this sum.


C.H.E. Group Plc ia a fully quoted Hotel operator owning the Quality franchise
throughout the UK and Europe It currently owns or manages 41 hotels in the UK
and Ireland with a further 12 in Europe.



The acquisition has been financed through the Group's existing cash resources
and no further structured debt has been taken out to fund this transaction.


The hotel is located in a prime development site in Plymouth. The site covers
2.25 acres, and provides a number of possibilities for improvement and
re-development.


Commenting on the acquisition, Mark Rubin said "Our shares are currently trading
at a big discount to net asset value. We recognise the importance of another
income stream to help address this situation with the underlying property still
supporting the transaction, which is of paramount importance to us".

Are there many more beautiful charts anywhere??


"

Worth buying at current levels ?

I think so. Chester, results in May should show a nav of 200p+, I suspect rather more - and they pay a dividend. Given that some stocks in the sector trade close to, or in some cases above, nav, GSC, at 30% below (and the shares would need to rise40%+ to trade there), most certainly a buy here. (I bought more at 133p the other day). Yesterday's 2p rise was, as i said elsewhere, utterly, utterly derisory.

They will never be a one day wonder, (and one reason I think it is not higher is many people's need for instant gratification these days) but I reckon by the end of 2004 the shares should be 50% higher than currently, and if that appeals to you, then these should definitely be bought at these levels. They have a simple, (arguably boring), but stunningly effective formula for making a lot of money.

Also over the years I have owned shares in 100s of different companies (literally), and I can say with quiet certainty, this is the best management I have ever come across, in any sphere. My private reckoning is that over the next few years, nav will multiply several times from here and my confidence means this is the biggest stake I have ever held in any company.

Thread goes back to last August btw, to top for Remyfenn.

Thanks for the consideration EC

Aim listed similar company PHP, (results today) nav 263p share price 320p.
GSC indicative nav 200p share price 145p.
Shows how much higher GSC could be - now - or at worst by results in late May.

Going from strength to strength....

This does indeed look like a good company. The OFEX listing seems to be seriously holding the share price back too.

I've been researching into this one and am thinking of going in. Thanks for highlighting it, Eyecatcher.

What was the comment from peerscarter that was deleted?

I nipped in this morning to buy a few at 156.99. Not a big holding but quite happy to see it up nearly 10% today! Thanks Eyecatcher ;-)

Well done Markus, now 190p.
Results are due towards the end of this month, which will confirm the spectacular new nav and pay a nice rising divvy.
If Jury's did get taken over, as some are forecasting, GSC will make yet another mint!!
Those who have resisted temptation to date should be looking seriously at it right here.
One of the few stocks anywhere that has shown genuine strength despite the general downturn recently and still has plenty more upside.
NAV already doubled in just over a year, stunning growth story.

Saving my portfolio, this one. Any idea of the ex divi date? Might be time for a top up!

Hi Markus, last year it was results on 26th May went ex-div 18th June, payment 30th June. I'd expect something similar.
Because of VAT quarters, the interims for the first half of '05 come as early as late September, which should bring (yet) another nav rise and divvy.

I have a recent copy of the shareholder register btw if any holders are interested drop me a p-m.

Edited with possible egg on face!
Just to clarify their Derby Hotel is Day's not Doyle's - apology for any confusion, so a bid for the latter would not impact that. Will let you know more when i hear back but I think from memory (only) GSC have some tie up with Jury's-Doyle as well. Am waiting to hear back from Mark Rubin though I gather he may be away at the moment.
Sincere apologies for that. Genuine mistakes happen! :*)

Results due in next ten days. The eps (admittedly not the best measure for commercial property but still useful) is going to blow your little grey ones I reckon!

Well the eps basic is 29p, pretty impressive for a share under 200p.

The adjusted eps is 72p!

From 134p at interims (and 101p at flotation as recently as September 2003) to 190p year end nav is pretty spectacular. Even more so when you consider the majority of repayments fall in the second half. I had actually anticipated even higher, given a comment to UQ_A which i mentioned earlier in the thread, but it's still a stunning set of numbers and I am not complaining!

I thought the dividend would rise (greedy s*d) but I think they want to keep cash for further investments and for that I cannot blame them.

The interims follow in September and given they should show yet higher nav it is no surprise the market has already marked the shares 3p higher this morning. A rare Ofex star.

I suggest holders sit very tight, or consider adding to long term holdings, these should trade well above nav, given astonishing pace of growth hitherto, as most similar AIM stocks do. Any bidder would have to pay well above. Add in quality of management and we also have 2005's revaluation still to come.

Looking forwards, British Land are telling us this morning that commercial property is still rising by double digit percentages. So applying that for 2005, we are looking at over 50p per share on nav before reduced repayments are added in, given the increase in the property portfolio in 2005, making about 70p per share if nowt else happens. Phew!

Superb!

Another rock solid set of numbers, trading well below nav. Very strong hold/add on ANY weakness.

The nav at c. 192.9p so that reflects there has been no revaluation of the portfolio in this period. Nice increase in rental income too, and as I have always said when there are no asset sales, profit is not the driving factor for a company of this sort.

That means the nav in reality is likely to be quite significantly higher.

PHP on AIM had results the other day and trades over 10% above nav. That would put GSC around 210p. Also looks as though the post balance sheet event of selling the Gala Bingo premises will lead to 0.5 million further uplift next time.

I like the very last sentence: 'As our investments continue to appreciate, we look forward with
confidence and believe there is considerable further value to be realised in
the coming months.'

Very happy that the next numbers will reflect a revaluation of the portfolio and pleased to see the divvy increase.

Nice to see one ofex company offer rock solid investment credentials.

If we were to add 6% (i think given the market this year 10% would be fairer) to the property portfolio for the next revaluation and deduct 3 million from repayments that would add about 70p to nav by next results. that factors in nothing for the Rubins as deal makers. It would give a figure of c. 260p by next June. Which makes GSC look extremely tasty once again at 184p now.

Simply too cheap now, on any unbiased analysis.

Well done the company; Well done, again, GSC.

A company that goes quiet for a while and then 'hits you with it' is on the acquisition trail again! Looks terrific.
This takes the portfolio past 80 million in value, was under 48 million two years ago. Market cap sub 20 million. These shares are worth having, the last sentences are particularly encouraging: '"We are delighted to have extended our hotel portfolio with this important
purchase, our largest to date. We believe the Metro Palace Court is a first
class property with considerable upside potential".

As the portfolio valuation closes in on the 100 million mark, it seems to me ever more likely a suitor will emerge, not if but when.


GSC PROPERTY BUYS BOURNEMOUTH HOTEL

GSC Property Holdings plc, the OFEX listed property investment company, has
completed the purchase of the Metro Palace Court Hotel in Bournemouth for a
total consideration of GBP 14.0 million. The vendors, American Amusements plc,
received GBP 13.5 million in cash and 200,000 new ordinary shares in GSC
Property Holdings plc.

GSC has financed the purchase from its own resources and a new GBP 11.2 million
loan from Anglo Irish Bank

The Metro Palace Court Hotel has 123 rooms, which will increase to 125
following refurbishment. Additional facilities include the fully licensed Gala
Casino and a leisure centre comprising pool, sauna, steam room and gym.
Situated in the centre of the popular seaside town, the Metro Palace Court
commands spectacular views across the bay. The transaction includes the
purchase of six adjoining shops, a casino and a car park.

Mark Rubin, Chief Executive of GSC Property Holdings commented:

"We are delighted to have extended our hotel portfolio with this important
purchase, our largest to date. We believe the Metro Palace Court is a first
class property with considerable upside potential"

I see UQ-A have failed to move their stance. If this stock isn't a buy I wonder what is!

Let's take a brief look at the record in the 25 months since float and outlook:

1) Net asset value up from 90p to 192p.
2) Share price up 360%.
3) Portfolio increased from 47 million to 82 million. Even UQ admits it is a 'conservative' valuation.
4) No revaluation in portfolio in 2005, at a time when the sector has grown by nearly 10%, which should add significantly to nav next results as repayments are also made.
5) A 38p a share gain on a single transaction.
6) Trading below net asset value, unlike many (not all) competitors who trade above, especially smaller players on AIM.
7) Rental income significantly improved to more than cover repayments, coupled with a seeming uncanny ability to spot a bargain.
8 ) Moved additionally into management as well as rental, allowing diversification.
9) Potential takeover target, ever more likely as portfolio grows.
10)A fantastic track record by management.

Worth buying for a medium to long term strong gain.

I think from an email I have received from the CEO, we can anticipate a further announcement over the next few weeks which as well as clarifying the position re-the Bournemouth purchase may well have additional news on the site. My own guess (pure guess) is that they may sell on some of the peripheral parts of it (for a profit naturally!). Of course he could not give me any further details as they may be market sensitive.

I am also very hopeful that we will not have to wait until the next results for an updated portfolio valuation, which in my own view would be a welcome development given the length of time between sets of numbers and may at some point come as an unexpected - and I sincerely hope pleasant - surprise to the market.

Blimey I didn't get wind of this though. The company continues to go from strength to strength and to grow spectacularly under a class management., (this has to be the one of the very best commercial property plays anywhere, even though listed on Ofex!)

I make it repayments of c.1.1 million pa, against income of 1.6 million. :

Key phrase for me: ''each offering a significant uplift to our net aset value.'

SC PROPERTY HOLDINGS PLC
COMPLETES FURTHER MAJOR PROPERTY TRANSACTION

GSC Property Holdings plc, the OFEX listed property investment company, has
completed the purchase of Astimwood Properties Limited, for a total cash
consideration of GBP 24.0 million. Astimwood Properties is a property
trading company, its principal assets are two linked properties in the
centre of Southend, Maitland House and the Warrior Centre.

GSC has financed the acquisition from its own resources and a new GBP 18.8
million loan from Norwich Union. The interest rate on the loan, which
is due for repayment in 2028, is fixed at 5.69 per cent for the term of the
loan.

Maitland House is an eleven storey totally refurbished office block; tenants
include London and Scottish Bank Plc, Insure & Go and Club la Costa. Total
rental income is GBP 1.1 million.

The Warrior Centre leisure complex includes a 56 room Travelodge Hotel; a
Barraccuda Group managed pub and a night club. Total rental income is just over
GBP 0.5 million.

This transaction follows the November 2005 purchase for GBP 14.0 million of
the Metro Palace Court Hotel in Bournemouth and is a further step in the
company's growth strategy.

Mark Rubin, Chief Executive of GSC Property Holdings commented:
"Astimwood is an excellent acquisition and brings another two first class
properties into GSC, each offering a significant uplift to our net aset value.
This purchase reflects our commitment to identifying properties which offer
above average returns and strong cash flow"

Well I reckon that takes assets to about 106 million, though of course the portfolio has not been valued for about a year, which is going to be very nice when it does get assessed.......

Not bad for a company with a market cap under 20 million - of course they have repayments, but in two years or so the portfolio has more than doubled in size and there is no sign of the growth stopping, infact quite the reverse!

Broken out over 200p as the classic 'delayed reaction to good news syndrome' on Ofex strikes again. That latest acquisition looks a classic piece of GSC business.

Now looks like going into Christmas around 220p. A bagger since the start of this thread (and some will know I was keen at much lower levels!).

Simply stunning performance - again. Edit: shares 255p, they should be absolute minimum of 325p after this statement imho. nav increased from c.100p to c 340p since September 2003, some performance!

GSC Property Holdings plc, the OFEX listed property investment company, is
pleased to report a strong performance for the year to 31 December 2005. The
company's net asset value per share, its key measure of performance, has been
boosted by a number of major asset purchases including the acquisition of the
Manor Court Hotel in Bournemouth in September and Maitland House and the
Warrior Centre in Southend in December.

The Company's final results for the year, which will be announced towards the
end of May, are subject to audit and confirmation of asset values; initial
indications suggest that at the year end the Company's net asset value was in
the region of GBP 35 million, equivalent to 340 pence per share, after
adjusting for loans totalling GBP 68 million.

Eyecatcher do you think it is definately worth getting into then before the results come out?

Hi Chris, I have been in this stock since 2003 when it was under 50p and I have always said it is not a trading stock, quality growth from a top management - it's not a NLR style of investment, and they have delivered again today.

Clearly the differential between share price and nav should be closed and fairly quickly, but what should and what does happen aren't always the same, though I sincerely hope it will be.

That said, if you have the right mentality, then these shares are a strong buy. I don't know of a stronger medium/long term investment, and in 20 years have not come cross a smarter management.

Been doing some number crunching of my own having gone through historical purchases and deals.

Best guesses would be assets of about 103 million, loans of 75 million and cash (offset against them) of perhaps 7 million, hence the 68 million quoted.

If i am right about cash balances then that offers the sort of protection i am looking for - and i feel looking at bigger players the scope for short term upside to around nav, given the c.250% growth in two and a half years, would be more than fully justified. Clearly we have here an exceptional performance.

Anyone buying now can I feel expect at least 60p+ a share (which would still be below nav) over maybe 3-6 months, for starters, with very minimal risk imho.

I confess I was blown away by yesterday's figure, but predictably the shares have responded in a typically underspoken manner!

Have posted this elsewhere to demonstrate why i think this remains one of the best buy and hold investments anywhere on any market, currently 260p, i believe they will, at least, double in two years.

'Might also be a good moment to offer a forward projection or two (usual health warnings to any forward projections!) - something I think if UQ-A were to mull over they might then see things with a little more clarity.

My caculation was assets 103 million debt 75 million cash 7 million.

Of course as deals are done these figures will move around but based on those calculations, even oif they aren't exactly right.

I think that the sector may well rise by 10% over each of the next two years. I accept that might be wrong, but I will assume no profits from rental income etc to counteract that, after repayments and dividends - and given the Rubins ability to do cracking deals 10% gains overall seems to me modest.

But I will use 6%.

So we would see 6.15 million gain in nav in year one and 6.6 million in year two.

I estimate around 7.5 million will be made in repayments. The 7 million cash should earn over 2 years around 1.25 million.

So we have assets of 115.75 million, repayments remaining of 67.5 million and cash of 8.25 million.

124 million v 67.5 million in two years, or a nav of 56.5 million (around 550p per share).

i know such projections carry risks and margins for error, but in two years a share price say 10% below that (though why it should be below with such stellar growth is beyond me, assuming the sector remains buoyant) of 500p.............

Remember it assumes no profits and gives no account of the Rubins ability to do deals, which has looked pretty good to me so far, and a growth rate in valuations of 6%.

...........Is that overly fanciful? I don't think so. Infact I hope it is deliberately understated.

My personal view is that people should most certainly keep buying.'

thanks for the comments EC, i think i may jump in there with you!
However It would mean selling others, EC, just from your personal opinion, i currently hold BP, Thinking of selling and buying into this one, what do you think?

Chris have p-m'd you.

Just had a look at some AIM stocks in the sector and every one I looked at trading at or above indicative nav,
eg:
BIZ recently reported nav 67p, shares 72p.
PHP last results nav 315p shares 390p
ISP just reported nav 140p, shares 154p.

GSC just reported indicative nav 340p, shares 260p.

Plenty upside methinks!

Even SAF which has increased nav by about 40% in three years, is trading at nav. GSC which has increased their nav by 240% in a shorter period, is some 80p below.
GSc worth buying and locking away.

Might be a good time to remind people that indicative nav is 340p, nearly double a year ago and with plenty more to come for the patient in a sector continuing to flourish, for results which are due by end of month, against a share price of 260p. Worth accumulating imho.

Good post from GSC holder elsewhere:
'I have also been adding to GSC. Of all the property shares (on any market) they look the best value to me (and that is with no allowance for the track record of the management). An earlier posting mentioned an article that said they were only reasonable vaue as they were very small and illiquid. I can't disagree with the illiquid bit but they are not that small. The lack of detail on the properties they own is anoying but is no worse than a lot of main and AIM listed property stocks. Maybe the management have been lucky so far and hit on a few good deals but I like the fact they are looking for properties with good covenants even if they are unusual properties.
I have a lot less invested in property shares than I did a few years ago when no one seemed to want them (Mountview, Daejan, Primary Health, Eskmuir, Bizspace, Workspace etc were all trading on huge discounts to NAV) but feel more comfortable with GSC than any of my other holdings.

Also own some shares in Safeland (although just sold most of them). Held for years and very happy with performance (big increase in share price from below 20p plus all the spin off companies). Always traded on a massive discount to true NAV until recently. Always held onto them because of the discount even though it is not possible to know what they the own and trade as so little detail in accounts. Almost sold a few years ago after reading a lot of articles about Larry Lipman (director) which put him alongside the devil himself - try a search on the web and see what I mean - articles nearly all come from left wing organisations. It did put me off the company a bit (don't know if any comments are true) but stuck with them as they had made me money. Maybe I wil pay the price in a later life!'

Looking cracking value at 260p. Results in the next ten days will confirm a substantially higher nav (around 340p) and in tough markets some of these are well worth tucking away ahead of the numbers, for a long term sleep-easy, whatever the wider market throws at us.

Results make these a fantastic long term buy whatever the wider market might be doing - one to lock away - even if I am biased!

Highlights:
* Rental income up 60.3% to GBP 5,421,437 (2004: GBP 3,381,323)
* Operating profit rises 14.3% to GBP 3,336,994 (2004: GBP 2,919,409)
* Full year dividend increased by 20.0% to 4.2 pence (net) per share (2004:
3.5 pence)
* Net asset value at year end climbs 83% to 347 pence per share (2004: 190
pence)

Mark Rubin, Chief Executive commented:
"These results demonstrate the successful growth and expansion of our property
investment business. We continue to seek investment opportunities with
unrealised potential in order to generate further positive returns for
shareholders"