REG - ICG-Longbow Senior - Portfolio Update

ICG Longbow Senior Secured UK Property Debt InvestmentsAnnouncement

13/12/2023 07:15

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RNS Number : 5541W  ICG-Longbow Snr Sec UK Prop DebtInv  13 December 2023

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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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