New Loan Commitment

RNS Number : 4001C

ICG-Longbow Snr Sec UK Prop DebtInv

17 March 2014

 

 17^th March 2014

ICG-Longbow Senior Secured UK Property Debt Investments Limited (LBOW)

(the "Company")

New Loan Commitment

The Company has committed to its ninth transaction, a £10.00 million loan to Lanos (York) Limited (the "Facility"). The Facility, which has a maturity date of 31 December 2018, will be advanced on or before 21 March 2014.

The Facility is secured by a first and only charge on the Best Western York Monkbar Hotel, which is located close to the city centre of York. The established mid-market 99 bed hotel benefits from a stabilised income profile and offers the potential to grow income and value through a planned refurbishment and 27 bedroom extension, which is to be funded through a ring-fenced element of the Facility.

The completion of this loan increases the total investments made to date by the Company to £97.255 million, representing 94.9% of available capital. The Company's loan portfolio now produces an average coupon of 7.3% pa⁽¹⁾, with a projected internal rate of return if held to maturity of 8.4% pa⁽¹⁾. The average Loan to Value exposure across all loans is 62.0%⁽¹⁾, with an average Interest Coverage Ratio of 160%⁽¹⁾ .

ICG-Longbow, the Company's investment manager, has also identified a potential 10th loan investment opportunity that the Company is currently considering. A further announcement will be made as appropriate.

The Company's loan portfolio security shows a geographical split (based on value of underlying property) of:

Greater London:	38.6%
Midlands:	20.0%
North West:	15.9%
Yorks & Humber:	10.3%
Scotland:	5.7%
East:	4.3%
South East:	3.7%
South West:	1.5%

The Company's loan portfolio split by property sector is:

Retail:	18.6%
Industrial/ Distribution:	30.2%
Other (student accommodation):	18.6%
Other (Hotels):	10.3%
Mixed:	21.0%
Office:	1.3%

⁽¹⁾  All averages calculated on a capital weighted basis

For further information, please contact:

Heritage International Fund Managers Limited:
Mark Huntley James Christie	[phone]
Investec Bank plc:
Jeremy Ellis	[phone]
David Anderson
Maitland Consultancy Limited:
Rebecca Mitchell	[phone]

Further information on the Company can be found on its website at http://www.lbow.co.uk.

 

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