Selling 25% share of a property company?

[stanielgirl]

Hi - For personal/health reasons I am looking to sell my 25% share in a property company which already holds assets. Does anyone have any advice about platforms, agencies to use when selling this type of investment? It has been suggested to use Rightmove/Zoopla but I am not sure that is the right avenue to pursue.

 

[fisicx]

What is your 25% share? is it actual shares, are you a director, or it is just the assets.

I suspect you would need to engage the services as a business broker as it could get complicated.

Have you offered your 25% to the other shareholders?

 

[stanielgirl]

What is your 25% share? is it actual shares, are you a director, or it is just the assets.

I suspect you would need to engage the services as a business broker as it could get complicated.

Have you offered your 25% to the other shareholders?

Hi - thank you for responding. Yes- as per our agreement the other directors/ shareholders were offered my 25% but are not able to purchase them at the moment. I am a director so it would be the 25% share of the Ltd Company. It is advice on what broker to use that would be helpful if anyone has any recommendations.

 

[Mark T Jones]

Hi - thank you for responding. Yes- as per our agreement the other directors/ shareholders were offered my 25% but are not able to purchase them at the moment. I am a director so it would be the 25% share of the Ltd Company. It is advice on what broker to use that would be helpful if anyone has any recommendations.

Stark reality - nobody will be interested in a minority shareholding of a limited company - they may be interested in the assets

If you have a shareholders' agreement, this shod be covered.

Is it a trading business, or just holding property?

 

[fisicx]

@stanielgirl - if you have shares you could just hold onto them and collect the dividends.

How much is your 25% worth?

 

[stanielgirl]

@stanielgirl - if you have shares you could just hold onto them and collect the dividends.

How much is your 25% worth?

Thank you for your reply - I don't wish to discuss details on an open forum though. I wish to sell for health reasons, need the funds. There are assets

 

[stanielgirl]

Stark reality - nobody will be interested in a minority shareholding of a limited company - they may be interested in the assets

If you have a shareholders' agreement, this shod be covered.

Is it a trading business, or just holding property?

It holds property assets - it is not a trading business like a shop or an online business

 

[Mark T Jones]

It holds property assets - it is not a trading business like a shop or an online business

Id suggest you get professional advice on structuring a deal.

Presumably you have up to date A & L statement - in this case it looks like 'it's worth its valua'

 

[WaveJumper]

I tried a google search with "where to sell your share in a property portfolio uk"
came back with quite a few results

Here's a couple:

Sell My Property Portfolio | Secure A Cash Offer Today

Sell your property portfolio with Bettermove. We've helped countless landlords secure the sale they need. No fees ✔ No hassle ✔ One simple sale on your terms ✔

www.bettermove.co.uk

House Buyers UK | Good Move™: The House Buying Service

Looking for House Buyers UK? Good Move™ offers 3 quick & easy steps to sell your house quickly. Click for a free consultation and valuation.

goodmove.co.uk

 

[MikeJ]

Both of those look like options to sell the properties, rather than a share of a business.

 

[stanielgirl]

Both of those look like options to sell the properties, rather than a share of a business.

Thanks Mike - that's not an option as the other shareholders don't want to do that

 

[fisicx]

Thanks Mike - that's not an option as the other shareholders don't want to do that

Which may put you up that creek without a paddle. Buying 25% with the other 75% owned by unknown directors isn’t an attractive proposition.

There are loads of brokers who can help you with this. A local search will find someone who can help. Might cost you a few thousand but trying to do this on your own will certainly end in tears.

This isn’t like selling your house. This is a business sale. Could easily end up taking many months just finding a buyer. Then unmpteen more months of negotiation.

 

[Nathanto]

Thanks Mike - that's not an option as the other shareholders don't want to do that

Are the properties generating an income? It's hard to see how a 25% share could be attractive to anyone unless it's providing a decent income/dividend or if the 25% share was offered at a huge discount to the underlying asset value.

If you had the funds would you be able to persuade the other shareholders to sell the other 75% of the company (rather than one or more of the assets) to you?

 

[Steve Thornbury]

Drop Barry a line, he's a really good chap and will point you in the right direction
[email protected]

 

[pentel]

You mention properties.

Could the company sell one or more of the properties to give the company enough cash to buy back your shares?

Buyback of Shares

Read our quick guide to the buyback of shares, covering restrictions, considerations and the different types of buyback available.

www.ouryclark.com

 

[Bobbo]

Realistically your options are:
- other shareholders buy you out (which you have already said has been declined)
- the company buys back your shares*
- all shareholders sell to a third party who wants to take over the whole thing

* different ways to fund this like, as already suggested, sell one of the properties, or borrow funds (assuming distributable reserves)

 

[The Resolver]

The rules for the operation of the company are the first thing to focus on. You first need to understand the Articles of Association and any Shareholders Agreement, I suspect , if you don't have one, that your needs will be best covered by persuading the others to enter into a Shareholders Agreement that has specific provisions for what to do when one shareholder wishes to exit. ,If already have one then you need advice as to its content,.

If you don't have a Shareholders Agreement then the rules will depend mainly on what is in the Articles of Association. As has been said above as a minority shareholder you have little say. 75% can even change the Articles, so not enough to rely on the AoA alone and do need a Shareholders Agreement,

It may be better , as @Bobbo suggests to sell to the company (although there are rules as to the liquidity of the company). or to the others. If they are not being helpful they need to consider the situation if they were to become in future in your predicament. This is a lesson for all involved in such shared property companies./t

I can walk you through the alternate scenarios and draw up a Shareholders Agreement if one is indeed needed. You can book in a free 30 mn advice call. in the link in my sig