Company Update and NAV Announcement 31 March 2018

AXA Property Trust Ltd - Company Update and NAV Announcement 31 March 2018

PR Newswire

London, May 30

30 May 2018AXA Property Trust Limited

Net Asset Value 31 March 2018 (Unaudited) and Update on the Ongoing Managed Wind-down of the Company

The Directors are pleased to give the following update on the status of the Company:

1) Net Asset Value as at 31st March 2018

This compares to a NAV of £14.906 million (63.69 pence per share) as at 31st December 2017.

2) Update on Asset Disposal and Tenant Discussions 

As a result of the ongoing discussions with the tenant at the Curno property, the Manager is proposing to agree a lease restructuring in order to reduce the rent to a level considered to be more sustainable for the tenant and prospective purchasers, in view of the change in local cinema operating conditions. At the same time, the lease negotiations will target an extension to the existing unexpired term of 6.5 years in order to widen the appeal of the property to potential purchasers.

As a consequence of the likelihood of these negotiations concluding, the valuation of the property as at 31st March 2018 has been adjusted downwards by the valuer, Knight Frank, by approximately 14% from the previous valuation as at 31 December 2017.

It is the intention of the Manager that the principal terms of the lease restructuring will be agreed with the tenant with a lease commencement date on the new terms to be finalised during 2018. Depending on the final nature of these terms, it is possible that there will be further downward movement in the valuation.

An announcement will be issued once the lease terms are agreed and signed.

3) The Chairman has previously referred to ongoing analysis by the Board of Directors, in conjunction with the Manager, to review all options to minimise the cost structure and operating expenses of the Company. 

As a result of this review, and in view of the ongoing uncertainty of timing for the Curno disposal, the Board intends to provide shareholders with recommended proposals, and an overview of the options it considered, with regards to the orderly termination of the Company and a rationale which supports the Board’s recommendation.

It is intended that full details of these proposals will be circulated before the end of June 2018 within a Shareholder Circular and notice of an early Annual General Meeting.

Company website:retail.axa-im.co.uk/axa-property-trustAll Enquiries: Investment Manager AXA Investment Managers UK LimitedBroker Services7 Newgate StreetLondon EC1A 7NXUnited KingdomBrokerStifel Nicolaus Europe Limited150 CheapsideLondon EC2V 6ETUnited KingdomTel: +44 (0)20 7710 7600 Company SecretaryNorthern Trust International FundAdministration Services (Guernsey) LimitedPO Box 255Trafalgar CourtLes BanquesSt Peter PortGuernsey GY1 3QLChannel Islands