REG-Lon.&Assoc.Props PLC: Oaktree Capital Management Joint Venture

London & Associated PropertiesAnnouncement

28/05/2019 17:05

FOR IMMEDIATE RELEASE

28 May 2019

LONDON & ASSOCIATED PROPERTIES PLC:

OAKTREE CAPITAL MANAGEMENT JOINT VENTURE

London & Associated Properties PLC (“LAP”) today announces that it and
Oaktree Capital Management have declined to inject further capital into their
Harrogate Portfolio (“the Portfolio”) joint venture following a
revaluation by the senior lender resulting in a breach of the loan to value
covenant.

Consequently, the mezzanine provider, DRC, has indicated its intention to take
over the equity of the Portfolio, comprising three shopping centres, in
accordance with the terms of the mezzanine loan documentation.

LAP currently owns a 3.17% interest in the Portfolio. As a result of DRC’s
intentions LAP’s interest in the joint venture has been written off. The
capital loss to LAP will be £1.783 million although this has no cash flow
implications.

LAP currently asset and property manages the Portfolio though its wholly owned
subsidiary LAMS for which it receives annual gross fees of approximately
£400,000. LAMS’ exit from these management contracts is being negotiated.

Ends.

Contact:

 John Heller, Chief Executive, LAP.          Tel: 020 7415 5000  
 Baron Phillips, Baron Phillips Associates.  Tel: 07767 444193   



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