Notice of Circular
UK COMMERCIAL PROPERTY TRUST LIMITED
4 APRIL 2011
AMENDMENT TO THE INVESTMENT POLICY AND NEW BANK BORROWINGS
The Board announces that it intends to put in place further long term borrowings to finance future acquisitions. It is therefore proposed that the investment policy of the Group will be amended to increase the gearing limit to permit such borrowings. The Company has today published a circular convening an extraordinary general meeting to be held on 28 April 2011 ("EGM"). At the EGM, Shareholders will be asked to approve an ordinary resolution to amend the Group's investment policy to state that (i) the Board intends that borrowings of the Group at the time of draw down will be limited to 25 per cent. of the Total Assets of the Group; and (ii) for so long as the existing Lloyds Facility remains outstanding, it is the Board's intention that borrowings of the Company, but not the overall Group, will be limited to a maximum of 10 per cent. of the Group's net assets at the time of draw down. Otherwise, the investment policy of the Group will continue in its present form.
The Company's largest shareholder, Phoenix, which currently holds 66.04 per cent. of the ordinary shares in the Company, has irrevocably committed to voting in favour of the resolution.
The Board has discussed the potential new borrowings with a number of banks and is confident that it can secure the further long term borrowings at an attractive rate.
Christopher Hill, Chairman of the Company, commented:
"Having launched the Company with no leverage in 2006, and with prudent leverage since then, the Board believes that now is the time to increase leverage to these new, relatively modest, levels when the opportunity arises. The Board further believes that increasing the gearing level of the Group and entering into new borrowing facilities will provide opportunities to enhance returns to Shareholders over the medium to long term."
Robert Boag, Senior Investment Director at Ignis, Investment Manager of the Company, commented:
"At a time when prime property values are stable and with signs of an improvement in the availability of suitable stock, the potential for a further injection of debt presents a very real and strategic opportunity for the Company and will allow us to invest further in sound, income producing assets which will complement the existing portfolio."
A copy of the Circular will shortly be available for inspection at the National Storage Mechanism, which is located at www.hemscott.com/nsm.do. Copies of the Circular are also available from the offices of Dickson Minto W.S., Broadgate Tower, 20 Primrose Street, London, EC2A 2EW.
Terms defined in the Circular have the same meanings in this announcement unless the context requires otherwise.
Enquiries
Robert Boag/Gary Hutcheson, Ignis Investment Services Limited
Tel: 0141 222 8000
Richard Sunderland/Will Henderson/ Stephanie Highett, Financial Dynamics
Tel: 020 7831 3113
The Company Secretary, Northern Trust International Fund Administration Services (Guernsey) Limited
Tel: 01481 745432
This information is provided by RNS
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