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Post by Moderator on Apr 6, 2020 17:29:52 GMT
The main reason for HE fund reorganization was the need to rehabilitate the non-performing assets prior to selling them on the real estate market. Now, after a few years of asset remediation, only 15% of total Class A shares are in “Site Plan/Draft Plan Approval” the rest is, if not already sold, then listed for sale or to be listed for sale within months.
Why is HE NOT completing NOW the disposition of the HRAC properties and place the money back in the Fund, resuming the normal activity as a MIC and opening the fund for redemptions and new investors, but instead presses the Investors to accept the fund split between performing assets and non-performing real estate assets in HRAC?
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Post by thebigshort on Apr 6, 2020 18:26:04 GMT
Where is 15% coming from?
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Post by Moderator on Apr 6, 2020 21:01:28 GMT
Where is 15% coming from? The Interim Report that we received from HE on January 21, 2020 (attached), indicates that on Dec 31, 2019 $33,724,764 of HRAC properties were in Site Plan/Draft Plan Approval, which represents 15.66% of total Class A shares of $215,307,480
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chris
Junior Member
Posts: 13
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Post by chris on Apr 7, 2020 0:25:52 GMT
Good point, Moderator. The report caught my attention too, why r we still doing the reorg thing when asset remediation is close to completion?
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brad1
Full Member
Posts: 39
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Post by brad1 on Apr 10, 2020 15:46:16 GMT
The last update we received on April 8, 2020 from the HMIC CEO tells us that HRAC has 270 residential rentals, besides an undisclosed number of commercial properties (?).
What is the HRAC rental income and how is that used?
Shareholders deserve more than half-baked information about their investment.
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Post by nemesis on Apr 10, 2020 16:04:36 GMT
HE says there is enough money coming in from rentals for remediation of properties to bring everything to market... some a little sooner than later. So why doe we need B shares? What is the point of continuing to lobby for a two share plan?
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barb
Junior Member
Posts: 11
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Post by barb on Apr 10, 2020 21:14:41 GMT
For me the reorg plan didn't make sense from the beginning. One question I asked - what happens with the new defaults - never received a good answer, only the reassurance that no new asset will be dumped in HRAC and HE is not expecting defaults since they tighten up the underwriting standards, same that were presented as very conservative in 2015 when I invested
I was not happy with this half-baked answer and I voted against the plan. With more defaults expected, how would HE plan work?
They have to tell us asap, time is of the essence
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bojo
New Member
I'd rather be dead in ditch than agree to get scammed
Posts: 8
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Post by bojo on Apr 12, 2020 21:22:06 GMT
Why is HE NOT completing NOW the disposition of the HRAC properties and place the money back in the Fund, resuming the normal activity as a MIC and opening the fund for redemptions and new investors, but instead presses the Investors to accept the fund split between performing assets and non-performing real estate assets in HRAC? Not the best time for investing in new mortgages. A better option is to distribute the proceeds to Investors; two scenarios to choose from: 1. Buy out the "vocal" minority group and others that would take an exit option at a discount OR 2. Distribute the proceeds pro-rata to all shareholders According to the last update from April 8, the HRAC sales is going well, it's about time to end the reorg charade
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tim
New Member
Posts: 1
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Post by tim on Apr 17, 2020 0:41:58 GMT
I hope folks on this forum realize that LD doesn't give up voluntarily on his plans.
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Post by nemesis on Apr 17, 2020 16:03:32 GMT
I'm sure Larry does not like giving up on a plan - but if the plan no longer makes sense, what then? Is he too stubborn to think about alternatives that make more sense in this time of covid.
To re-organize the MIC, HE would have to go back to court first, then go back to investors for another vote. How many months if not years would it take to get a court date? The courts will be backed up for a long, long time I think. The idea that there would be new investors interested in signing on seems extremely far fetched. Who would want to invest in a company that has been on lockdown for 5 years?
What about taking on new mortgages? How many builder/developers are there out there looking for mezzanine financing. The only way HE makes fees is if there are new mortgages to be had. The whole world of building and development is in turmoil now. It will take a very long time to sort that out.
Where exactly does HE go for the money to offer up to potential new borrowers?
And IF there actually were any new borrowers to be had, how high risk would the borrowing be? Which might inevitably lead to more foreclosures and an ever growing pot of properties that would need to be sold down the line. As for the current HRAC inventory - how long before the renters stop paying their rent in these extreme circumstances.
I just don't see a long game here at all.
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Post by thebigshort on Apr 17, 2020 19:59:12 GMT
nemesis , LD should laminate your posting and hang it in his office Come on, LD, change the course, not because your reorg plan is not good, but for what the deadly virus can do to your business! Your supporters are already anxious and they will turn against you when the foreclosures will pile up. and there is no cash left You'll have no one to blame except yourself
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Post by thebigshort on Apr 17, 2020 20:10:41 GMT
I hope folks on this forum realize that LD doesn't give up voluntarily on his plans. This is not voluntarily, it's because of the deadly virus that will damage substantially the MICs. Romspan will likely survive, but HE is already at the end of the rope One question still bugs me: is LD capable to come up with another plan in the new circumstances? His supporters credit him with magical skills. Let's see if he has what it takes to get the fund out of this
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worried
Junior Member
Super worried for my investment in HarbourEdge
Posts: 13
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Post by worried on Apr 22, 2020 0:26:43 GMT
thebigshort, Sorry to ruin your optimism, LD was not able to steer the fund in the right direction in normal times. The current economic turmoil is rather an excuse for his favorite strategy - DO Nothing - than an opportunity for his leadership to shine. LD and leadership just don't go well together. What he does well is being the master of our sorrows
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Post by thebigshort on May 17, 2020 19:58:45 GMT
The investor update for April 2020 came out with a change of narrative that I detected at the very end of the report: “HarbourEdge will continue work to monetize all HRAC assets and return those monies to HMIC”. Different words for an older posting on this Forum “Why is HE NOT completing NOW the disposition of the HRAC properties and place the money back in the Fund, resuming the normal activity as a MIC” There is no need for Two Share Plan Are the investors behind this change of narrative that I personally like the same sending us messages from InvestorsHE, i.e. Robert Mitchell?
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Post by captain on May 18, 2020 2:28:56 GMT
Yes the monitize HRAC assets and return monies to HMIC does sound positive ... but this also sounded positive back in May 2019 when the list of assets came up with many for Immediate Sale! ... did not happen. The facts do not support the positive monetization comments ... he is just stalling for time.
I looked back to Jan 15-2019 (last ELO payment) to April 30, 2020 (yesterday's HE update). Approx 15.5 months
FACTS 1. HRAC book value went from Jan 15-2019 $116,059,000 down to April 30, 2020 $96,032,305 2. in 15 months somewhere between $3.2MM to $7MM of HRAC assets sold (can't verify due to shitty reporting)
MY INSIGHTS A. At the pace of selling this will take 10-15 years to sell everything, but we have covid-19 B. in this covid-19 environment, HRAC will acquire assets for bad debt faster then HE can sell
NET NET .. if we do nothing, in 24 months I would forecast HE will be 20% MIC and 80% HRAC ... maybe 100% HRAC.
IT IS OUR RIGHT FOR .. all HRAC sales and mortgage maturity go directly to redeem shareholders pro-rata on the exit list!
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