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RNS Number : 5541W ICG-Longbow Snr Sec UK Prop DebtInv 13 December 2023
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR
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13 December 2023
ICG-Longbow Senior Secured UK Property Debt Investments Limited (the Company)
Portfolio Update
The Company has received repayment in full of the outstanding balance of its
Northlands loan, together with interest and fees, totalling £0.5 million,
following a further property sale. The loan has been repaid through a series
of property sales over the past 12-18 months generating an 8.4% IRR.
Conditions in the UK property markets remain sluggish, with transaction
volumes in the third quarter down 8% on Q2's weak figures. As a consequence,
realising the Company's remaining investments continues to be challenging.
All remaining investments are now subject to enforcement processes and the
Board and Investment Manager are focused on pro-actively managing the assets
to support income and value during the sales processes.
Affinity Loan
Following appointment of a receiver over the property, active management
continues to seek to optimise income with a key lease renewal in documentation
at a 10% premium to Estimated Rental Value ("ERV"), and a potential new
letting at an 8% premium to ERV, which would be a record rent for the
building. Should these transactions complete we expect this will allow for a
revitalised marketing process for the asset. In the meantime income from
this loan is expected to be sufficient to cover the Company's cost base in the
coming quarters.
Southport Loan
Following appointment of a new joint sales agent, several interested parties
have come forward albeit no offers have yet been received. The hotel
continues to trade profitably coming into the quieter winter period.
RoyaleLife Loan
The administrator has appointed a selling agent to solicit bids for the assets
within the Company and its co-lenders' portfolio. This process is continuing
and, subject to the level of bids, could lead to a sale of some, or all, of
the portfolio assets. Given the weak market conditions, a new operator has
been appointed and the Investment Manager continues actively to progress
strategic alternatives for the business in conjunction with the operator, the
administrator and its advisers.
For further information, please contact:
Ocorian Administration (Guernsey) Limited
Louise Manklow +44 (0)14 8174 2742
Cavendish:
Will Talkington +44 (0)20 7397 1910
Daniel Balabanoff +44 (0)20 7397 1909
Further information on the Company can be found on its website
at http://www.lbow.co.uk (http://www.lbow.co.uk/) .
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