12th May 2015 11:29
LONDON (Alliance News) - JZ Capital Partners Ltd Tuesday said its net asset value increased to USD11.16 from USD10.25 in its last financial year before the payment of dividends of USD0.31.
In a statement, the London-listed private equity fund said the growth in NAV was driven by an increase of USD1.75 in its private investments, USD0.46 in income from investments, and USD0.11 in escrow distributions, which more than offset decreases relating to its public investments, lower fair value of its convertible unsecured loan stock, finance costs, fees and expenses, and foreign exchange losses.
A closed-ended investment company, JZ Capital Partners is advised by Jordan/Zalaznick Advisers Inc, which is led by David Zalaznick and Jay Jordan.
"The US real estate portfolio has grown considerably over the past year, where we continue to execute on our opportunistic and value oriented investment strategy. Most recently, we have acquired properties in Miami's Wynwood and Design District neighbourhoods, both of which draw strong parallels to our real estate assets in Williamsburg, Brooklyn," David Zalaznick, the founder of JZ Capital Partners, said in a statement.
"We look ahead to 2015 with confidence knowing that JZCP has a strong balance sheet to take advantage of the healthy pipeline of realisation and investment opportunities," Zalaznick said.
JZ Capital Partners said it no longer intends to issue a second tranche of convertible unsecured loan stock, following the USD65.7 million previously raised, as it is in advanced talks over a new long-term loan deal for USD100 million, part of which would go towards paying down its short-term debt.
Its debt is comprised of the convertible unsecured loan stock, a USD50 million short-term loan due to be repaid in June, zero dividend preference shares to be redeemed at GBP76.6 million in the same month of 2016, and USD40 million in a margin facility secured by our UK gilts and corporate bonds.
"It is important to note that the company finished the year with USD125 million in cash net of margin loan and marketable securities, in excess of the amount required for the repayment of ZDPs in 2016," Chairman David Macfarlane said in a statement.
"It is the plan of the board and the investment adviser that the redemption of the ZDPs in June 2016 will, whilst allowing for a continued investment programme, be funded through a combination of existing liquidity, a programme of realisations principally of identified US micro cap investments and select refinancings of assets within the US real estate portfolio," Macfarlane added.
The chairman said the company has worked hard for a "more secure" future in the long-term.
"The board believes the company is well positioned to use its strong balance sheet position and newly amended and more flexible investment strategy to take advantage of opportunities to acquire high quality companies at reasonable prices in both the US and Europe and significant value-add opportunities in the New York and Miami property markets," Macfarlane said.
JZ shares were up 3.1% at 445.00 pence midday Tuesday.
By Samuel Agini; [email protected]; @samuelagini
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