5th Oct 2009 16:58
Warner Estate Holdings PLC
("Warner Estate")
ASHTENNE INDUSTRIAL FUND ANNOUNCES £364 MILLION REFINANCING AND RAISES £45 MILLION OF NEW EQUITY
Aviva Investors and Warner Estate, on behalf of the Ashtenne Industrial Fund ("AIF"), have successfully raised £45 million of new equity in order to reduce its senior debt, and refinance its existing facility for a further four years with Royal Bank of Scotland and the Lloyds Banking Group.
The new equity, issued in the form of convertible loan stock which will convert to units in the Fund in September 2012 (or earlier at the option of the note holder), was raised entirely from within the Fund's existing investor base and was significantly oversubscribed, demonstrating investor confidence in the future performance of the Fund.
The revised debt facility provides stability to the Fund and a strong platform on which to continue the proactive asset management of the £627m portfolio comprising 330 industrial properties, let to 3,112 tenants, with an annual rent roll of £56 million. It will also reduce the need for further asset sales until values improve.
The Fund, which is managed by Aviva Investors and asset managed by Warner Estate, is now closer to concluding its disposal programme, having completed some £52.3million of sales in 29 separate transactions during 2009, at a modest discount of just 3.7% to their collective value in December 2008.
Siân Humphrey, Fund Manager at Aviva Investors commented: "We are delighted to have successfully concluded the equity raise and re-financing which provides a stable and defined future for the Fund and also reaffirms the continuing support from our investors."
John Heawood, Managing Director of Ashtenne Asset Management, the division of Warner Estate responsible for the asset management of AIF, commented: "The combination of the refinancing and the equity raised have given the Ashtenne Industrial Fund a solid base upon which to build, paving the way for a recovery in value through the next few years. Our unique structure of regional management teams has been hugely effective at retaining income, minimising void and continuing to make sales during the downturn. Today's announcement represents a very significant return on their efforts."
5th October 2009
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Enquiries:
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Warner Estate Holdings PLC |
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Philip Warner, Chairman |
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Mark Keogh, Finance Director |
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Robert Game, Property Director |
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Tel: 020-7907-5100 |
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Web: www.warnerestate.co.uk |
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