31st Mar 2008 07:01
Japan Residential Inv. Co. Ltd31 March 2008 JAPAN RESIDENTIAL INVESTMENT COMPANY LIMITEDANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTSFor the period from incorporation on 15 September 2006 to 30 November 2007 Highlights: . Acquired properties valued at Y27.7 billion (£121 million) as at 30 November 2007. Additional purchased and contracted properties as at the publication date brought the total identified portfolio to Y42.1 billion (£212 million). . Secured debt financing in the amount of Y11.5 billion (£50 million at 30 November 2007). Arranged an additional Y10.8 billion (£55 million at 25 March 2008) since the period end at terms in line with pro forma estimates at the time of launch despite significant tightening in the debt market. . Occupancy reached 87.4% at period end demonstrating significant progress towards full lease up and stabilized cash flow. . Capital value of properties purchased during the period increased by 5.3% from initial purchase price excluding acquisition costs (0.1% including acquisition costs) as at the period end. . NAV per share 90.7p at 30 November 2007 (104p based on exchange rate as at 25 March 2008). . After an initial rapid investment phase, the pace of investment has slowed in light of the deterioration in financial market conditions. . Interim distribution of 1.5p per share to be paid on 30 June 2008. CHAIRMAN'S STATEMENT I am pleased to present the Annual Report and Consolidated Financial Statementsfor the period ended 30 November 2007. Results The Fund reported a loss of £1,926,000 for the first financial period largelydue to a high level of administrative expenses. However, improvement wasrecorded in the last two quarters as a result of increased rental income. NAVwas 90.7p at period end (104p at the exchange rate as at 25 March 2008). Despite a competitive market for quality properties during the period, the Fundmade good progress in developing a strong portfolio purchasing properties valuedat Y27.7 billion (£121 million). Since the period end, additional commitmentsbring the total identified portfolio to Y42.1 billion (£212 million) (67% oftarget). The Investment Advisor has successfully arranged financing at market competitiverates. As at the date of this publication, the Fund had secured debt in theamount of Y22.3 billion (£113 million at the current exchange rate) at a blendedinterest rate of 2.28%. Market Global credit market turmoil has contributed to a more restrictive lendingenvironment. As a result, and due to the commercial property market's relianceon debt financing, we anticipate downward pressure on asset values in the nearterm. In this context, commitments for new acquisitions must be made withcaution and progress toward full investment will be tempered by a focus onmanaging financing and portfolio risk. To mitigate refinancing risk, the Fundwill seek to obtain, through new loans and refinancing, extended debt maturitiesin the 5-year range (current financings have tenors of from 2 to 5 years).However, in light of the current global credit crunch, there is no certaintythat debt with extended maturities will be available. Distributions The Directors intend to make an interim distribution of 1.5p per share fromdistributable reserves on 30 June 2008. This is less than the distribution hopedfor in the Admission Document because, in recent difficult market conditions,the Fund has been unable to achieve the level of investment and profitanticipated at the outset. Depending upon progress over the ensuing months in adifficult environment, it is hoped that a further distribution may be possiblewithin the calendar year. Outlook Tighter credit markets and a more conservative investment stance have slowed thepace of investment. We no longer anticipate full investment within the 18-monthperiod estimated at launch. While we remain vigilant towards the potentialimpact of the international credit crunch on the Japan property and creditmarkets, the Fund will take a conservative approach to new investment. TheManager currently anticipates full investment within the calendar year subject to the continued availability of debt financing at competitive terms and of investment opportunities with appropriate risk-adjusted returns. However in these uncertain markets, the policy will be monitored very closely. The Board commends the Manager for the steady progress in building a qualityportfolio of assets in Japan's major markets in what has become an increasinglydifficult financial climate. The Manager and Investment Adviser expect this toserve as a strong foundation for stable earnings and future growth. Raymond ApseyChairman Report of the Manager and the Investment Adviser Mission The Fund was established to generate stable yield and capital gain throughinvestment in the Japan residential property market. The focus is on developinga quality, diversified portfolio focusing on the following characteristics: . Well-located properties in central areas of major cities. . Single-oriented units, primarily studio and one-bedroom, in central areas where the demographic for young, singles continues to expand. . New product with modern design and amenities to attract tenants and with minimal capital expenditure requirements. Market Strong market fundamentals, namely healthy tenant demand and significantpositive credit spreads between property yield and financing costs, areovershadowed by capital and credit market turmoil. The benchmark Nikkei indexclosed under 12,000 recently for the first time since August 2005. Due in partto concerns over availability of financing, 39 out of the total 42 JREIT issuestrade at a discount to NAV as of 21 March 2008. The fact that many listed realestate companies are trading at a discount has diminished their ability to raiseequity capital and to drive market competition for assets. Residential property values in major Japanese cities rose sharply in 2007.Following steep appreciation in the cost of land and construction, newcondominium prices increased 14.6% year-on-year in Tokyo, 5.0% in Osaka, and17.7% in Nagoya according to reports by property information service providerTokyo Kantei. New condo supply in Tokyo declined 18.1% year-on-year as developers held backproduct to take advantage of rising prices. Higher prices have reduced uptakeand unsold Tokyo stock increased to 3,076 units (5% of total new inventory) atthe end of 2007. A new, stricter building standards law enacted in June 2007resulted in reduced housing starts and is expected to further constrain newsupply in 2008. The rental market remains strong for well-located, quality residentialproperties in major cities where rents are stable to increasing. In 2007, theJREI apartment rent index registered rental growth for the first time since thesurvey began in 1995, posting a modest 0.5% gain nationwide. Tokyo Kanteireports 4.5% annual rental growth in Tokyo, 1.1% in Nagoya, and 0.5% in Osaka. Debt markets have tightened significantly in Japan in response to global creditmarket turmoil and new domestic regulatory conditions. Some lenders haveresponded by curtailing or halting activities. However Japanese banks, thesource of most non-recourse real estate lending, remain active. Japan'sFinancial Services Agency has increased its scrutiny of bank exposure to realestate debt. In addition, enforcement of revisions to the Financial Instruments and ExchangeLaw commenced in September 2007, resulting in increased regulatory requirementsfor common types of structured real estate investments. Lenders have respondedto reduced competition and higher regulatory compliance costs with higherinterest rate spreads, lower loan-to-value ratios, and shorter loan tenors.Nevertheless, overall financing costs remain low relative to property yields. With lenders taking a more conservative stance, investors that rely onhigh-leverage have curtailed their activities. We expect the reduction inhigh-leverage players and reduced liquidity in the real estate securitiesmarkets to be a stabilizing factor for the Japanese property market over thelong-term. In the short-term, however, we anticipate that capital constraintsand general market uncertainty will result in downward pressure on pricing. Financial results The Fund recorded a profit of £500,000 before tax excluding administrative expenses. The Fund reported a loss of £1,926,000 for the period after administrative expenses of £2,071,000 including a provision for litigation in relation to the aborted purchase of two properties and a £223,000 exchange loss. However, the loss at period end was down from that reported at the interims (£2,805,000) as a result of increased rental income in the last two quarters to 30 November 2007. The Fund acquired several newly built properties on completion and saw occupancyrates steadily improve to 87.4% by the end of the financial year. We expectproperty operating expenses as a percentage of gross rental income to continueto fall as properties in the portfolio achieve full lease up and stabilized cashflows. Although the Fund will continue to incur significant costs related toproperty acquisitions and leasing activities during the initial investmentphase, the operating loss is expected to narrow and reverse as new propertiesare brought online and portfolio occupancy levels increase. On valuations at 30 November 2007, the portfolio registered a 5.3% gain overinitial purchase price excluding related acquisition costs capitalized. With ahigher Japanese Yen exchange rate against Sterling, the unrealized exchangetranslation loss of £2,468,000, which was significantly lower than the£7,257,000 reported as at 31 May 2007, was taken to reserve. As a result, netasset value per share at 30 November 2007 was 90.7p (104p based on the exchange rate as at 25 March 2008). Gearing calculated as net debt (borrowing less bank balances) divided by totalequity was 32.7% at the end of the financial year. Portfolio The Fund had completed purchases of Y27.7 billion (£121 million) of residentialproperties as at 30 November 2007. These acquisitions represent approximately44% of the targeted Y63 billion of assets on full investment. Acquisitionsrepresent a combination of properties purchased with stabilized cash flow andthose purchased on completion or during the lease-up phase. Stabilized annualyield for the portfolio at the property level is estimated at 5.0%. Property acquisitions have adhered to the guidelines outlined at launch. Theportfolio's position across a range of key factors including regionaldiversification, property age, and demographic orientation is detailed asfollows: Sector: All properties are residential. Some have a portion of space for retailor office use. Location: All of the 35 property investments as at 30 November 2007 are locatedin or within commuting distance of "key cities" with populations over 1 million.87% of properties by value are located in the top three most populous cities -Tokyo, Osaka, and Nagoya. Actual and Target Regional Allocations by Property ValueMarket Actual Allocation Target Allocation Tokyo 48% 40% to 50%Osaka 24% 25% to 35%Nagoya 15% 10% to 20%Other 13% 5% to 15% "Quality: Acquisitions have focused on new product with modern design andamenities to attract tenants and with minimal capital expenditure requirements.All properties are reinforced concrete structures. Access: All properties are located within walking distance (usually within 10minutes) of a train or subway station. Occupancy: The Fund has purchased properties at full occupancy or with theability to achieve stabilized occupancy rates at projected rent levels. Themajority of units are oriented toward the singles market, primarily studio andone-bedroom, in central areas where this demographic continues to expand. Building age: The portfolio is young - average property age 3.2 years - due tothe large proportion of new builds acquired. 91% of the buildings purchased asat fiscal year end are less than 5 years old. The portfolio's young age isdeemed to enhance performance due to the relatively low maintenance and repaircosts as well as increased competitiveness stemming from the newer amenities andmodern design. Diversification - Asset allocation: The Fund is well diversified with individual propertiesrepresenting from 1% to 18% of portfolio Gross Asset Value as at fiscal yearend. As the portfolio size increases, it is anticipated that no single assetwill represent in excess of 15% of portfolio Gross Asset Value. - Regional allocation: Strong regional diversification mainly through locationsin central areas of major cities with a primary focus on Tokyo, Osaka, andNagoya. - Unit type allocation: In line with Fund strategy targeting the young, singledemographic, the largest unit category was "Single" type at 69%. This categoryincludes studio and one-bedroom units up to 40 square meters in size. As at thefiscal year end, the second largest unit category was "Compact" (28%) aimed atboth the singles and young couples market. This category includes a varietyof unit types from studio to three-bedroom up to 60 square meters. Recent progress Since the period end, the Fund has purchased an additional Y10.3 billion (£52million) and contracted for an additional Y4.1 billion (£21 million) inproperties bringing the total identified portfolio to Y42.1 billion (£212million), approximately 67% of the Fund target. Estimated stabilized yield ofthe identified portfolio is 5.1%. While this estimate is 0.4% lower than thetarget yield on full investment as stated at launch, it reflects a higherconcentration of the portfolio in major metropolitan areas, the general qualityof the assets, as well as increased competition for assets. Early acquisitionswere focused on central locations, where capital values were rising mostrapidly, with a view to targeting higher yielding properties at the later stageof the initial investment cycle. We have been successful in arranging financing at competitive terms in spite ofthe challenges posed by recent developments in the credit market. The Fundobtained Y11.5 billion (£50 million) in five-year term debt financing whichamounts to 76.7% of the initial purchase price of collateral properties. Thefloating interest rate, 2.16% at fiscal year end, is capped at 4.0%. The Fundsince period end has secured financing totalling Y10.8 billion (£55 million) ata blended interest rate of 2.28%. Debt financing as of March 28th, 2008: Amount (Millions Interest rate Date of Repayment Note of Yen) Maturity method Y6,200 2.34% 27 June 2012 Bullet payment Floating rate Secured Y5,300 2.34% 27 June 2012 Bullet payment Floating rate Secured Y4,251 1.70% 29 December Bullet payment Floating rate 2010 Secured Y2,570 2.24% 26 February Bullet payment Fixed rate 2010 Secured Y2,709 3.03% 28 February Bullet payment Fixed rate 2011 Secured Y700 3.00% 28 February Bullet payment Fixed rate 2011 Secured Y590 2.32% 26 February Bullet payment Fixed rate 2010 Secured The overall objective is to mitigate refinancing and interest rate risk to helpthe Fund achieve its investment performance objectives. Interest rate hedgingstrategies have been employed to protect the Fund against significant increasesin interest rates. Where appropriate, we have utilized fixed interest rate loansand interest rate caps. Of the interest on total long-term debt of Y22.3billion, 29% is fixed rate, 52% is floating rate with a cap, and 19% is floatingrate with no cap. Of the total debt secured to date, 33% matures in 2010, 15% in 2011, and52% in 2012. Debt facilities arranged since December 2007 have maturities ofbetween 2 and 3 years versus the 5-year term finance arranged in June 2007. Therelatively short tenors of recent debt are of some concern given uncertaintiesin the current credit markets. We will seek to utilize the increasing scale anddiversification of the Fund portfolio to achieve improved economic terms andlonger maturities in conjunction with refinancing under the TMK structure, asoutlined at launch. However, there is no guarantee that debt with extendedmaturities will be available to the Fund or that economic terms of financingwill be advantageous. Outlook The full impact of the global credit crunch on the Japan property market remainsuncertain. Real estate investment is capital intensive and property markets relyheavily on debt capital. Further retrenchment on the part of Japanese lenderscould have severe consequences for the property markets. Current marketconditions suggest a conservative approach to new acquisitions over the comingmonths is warranted. Delays in arranging financing and a more cautious investment stance have slowedthe pace of investment. As a result, the Fund will not be fully invested withinthe 18-month time frame estimated at launch. We anticipate full investmentwithin the calendar year subject to debt financing being available atcompetitive rates and investment opportunities that represent appropriaterisk-adjusted returns. We intend to be appropriately selective with regard tonew acquisitions and to temper the desire to achieve full investment quicklywith the need to mitigate the Fund's exposure to market-event driven risks. Income StatementFor the period from incorporation on 15 September 2006 to 30 November 2007 Notes £'000 Gross rental income 3 2,484Property operating expenses (1,086) ------ Net rental income 1,398 Net gain from fair value adjustments on 7 109investment property Administrative expenses 4 (2,071) ------ Net operating loss before net financing costs (564) Interest income 120Interest expense (600)Net foreign exchange losses (223)Loss on fair value adjustments on interest rate (304)cap contracts ------Net financing costs (1,007) ------Loss for the period before tax (1,571) Taxation 6 (355) ------Loss for the period (1,926) ====== Loss per share - Basic and diluted 5 (1.93p) ====== All items in the above statement are derived from continuing operations. The loss is attributable to shareholders of the Company. There are no minorityinterests. Balance SheetAs at 30 November 2007 Notes £'000AssetsNon-current assets Investment property 7 121,270 Interest rate cap contracts 132 Deferred tax asset 80 ------- 121,482 -------Current assets Trade and other receivables 1,557 Cash at bank 20,318 ------- 21,875 -------Total assets 143,357 -------LiabilitiesNon-current liabilities Security deposits from tenants 497 Bonds payable 8 49,998 Deferred tax liability 444 ------- 50,939 ------- Current liabilities Trade and other payables 1,263 Provisions 482 ------- 1,745 -------Total liabilities 52,684 -------Net assets 90,673 =======Equity Share capital 10,000 Special reserve 10 85,067 Foreign exchange translation reserve (2,468) Revenue deficit (1,926) -------Total equity 90,673 ======= Net asset value per share 90.7p ====== Cash Flow StatementFor the period from incorporation on 15 September 2006 to 30 November 2007 £'000Cash flows from operating activitiesLoss for the period before tax (1,571)Adjustments for:Net gain on fair value adjustments on investment property (109)Interest income (120)Interest expense 600Loss on fair value adjustments on interest rate cap 304contracts ------- Operating loss before changes in working capital (896) Increase in receivables (1,557)Increase in payables, provisions and security 2,179deposits from tenants ------- Net cash outflow from operating activities (274) -------Cash flows from investing activitiesPurchase of investment property (114,097)Purchase of investments in subsidiaries -Loans to subsidiaries -Interest received 120 -------Net cash outflow from investing activities (113,977) -------Cash flows from financing activitiesProceeds from issue of ordinary share capital 100,000Share issue costs (4,933)Proceeds from issue of bonds 49,998Purchase of interest rate cap contracts (436)Interest paid (537) -------Net cash inflow from financing activities 144,092 -------Net increase in cash at bank 29,841 Effect of exchange rate fluctuations on cash at bank (9,523) -------Cash at bank at end of the period 20,318 ======= Notes to the Financial StatementsFor the period from incorporation on 15 September 2006 to 30 November 2007 1. General information The Fund has been established to make and hold investments in residentialproperty in Japan. The Company is incorporated and domiciled in Guernsey. The Company has its primary listing on AIM, a market of the London StockExchange. These financial statements were approved for issue by the Board of Directors on28 March 2008. 2. Summary of significant accounting policies The principal accounting policies applied in the preparation of theseconsolidated financial statements are set out in the full financial statementsfor the period ended 30 November 2007. These policies have been appliedconsistently from incorporation. Basis of preparation The consolidated financial statements of the Fund have been prepared inaccordance with International Financial Reporting Standards ("IFRS") as adoptedfor use in the European Union. They have been prepared under the historical costbasis except for investment property and interest rate cap contracts which arecarried at fair value. 3. Gross rental income £,000 Gross lease income 2,324Service charges 160 ------ 2,484 ====== The Fund leases out its investment property under operating leases. Alloperating leases are for terms of two years or more. The future aggregate minimum rentals receivable under operating leases are asfollows: £'000 No later than 1 year 6,128Later than 1 year and no later than 5 years 6,250 ------ 12,378 ====== 4. Administrative expenses £'000 Legal claims provision 471Investment advisory fees 381Administration fees 339Professional fees 215Directors' remuneration and expenses 144Auditors' remuneration 89Bank Charges 53Management fees 64Insurance 40Financial advisory fees 48Nominated Adviser's fees 34Other 193 ----- 2,071 ===== Auditors' remuneration relates entirely to the provision of audit services. Inaddition Ernst & Young LLP earned the following fees during the period: £'000 Reporting accountants' fees on listing 15Tax advisory services 301Services as nominated adviser 171 ----- 487 ===== Fees relating to the issue of the Company's shares have been charged against theCompany's share premium (see Note 8). Other fees have been included inProfessional fees. Ernst & Young LLP resigned as Nominated Adviser with effect from 19 June 2007,as they ceased to provide the service. 5. Loss per share - basic and diluted The calculation of the loss per share is based on thefollowing data: £Loss attributable to the shareholders of 1,926,000the Company =========== Number of ordinary shares for the purpose of basic and 100,000,000diluted earnings per share =========== The Fund does not have any dilutive potential shares. 6. Taxation The Company is exempt from Guernsey taxation on income derived outside ofGuernsey and bank interest earned in Guernsey under the Income Tax (ExemptBodies) (Guernsey) Ordinance, 1989. A fixed annual fee of £600 is payable to theStates of Guernsey in respect of this exemption. No charge to Guernsey taxationwill arise on capital gains. The Company's subsidiaries are subject to foreign tax on income arising fromdistributions and interest payments from Japan. Deferred taxes have beenprovided on the undistributed profits of the Japanese entities and interestreceivable by the subsidiaries at the expected tax rate on the future paymentsby the Japanese entities. The fair value adjustments of the investment properties result in a temporarydifference between the carrying value of the properties and their tax basis.Deferred taxes on these differences are based on the expected tax rate on thefuture distributions made on disposal of the investment property. The Fund is liable to Japanese tax arising on activities of its Japaneseoperations. The Fund is liable to Dutch tax arising on activities of its Dutch operations. The tax expense for the year comprises:- £'000 Current taxation - Increase in deferred tax liability 433 Increase in deferred tax asset (78) ---- Income tax expense 355 ==== The charge for the period can be reconciled to the loss per the consolidatedincome statement as follows; £'000 Loss before tax (1,571) ====== Tax on ordinary activities at applicable country (306)rate (see below) Factors affecting charge Tax rate differences on fair value adjustments (161) Tax rate differences on deemed distributions 114 Expenses not deductible for tax purposes 198 Unused tax losses 510 ------Tax charge 355 ====== The applicable country rate above is a blended rate of those applicable indifferent jurisdictions, weighted by the profits and losses arising therein. 7. Investment property £'000 Properties purchased 111,422Transaction costs capitalised 2,675 ------- 114,097 Net gain from fair value adjustments on investment 109property Effect of exchange rate fluctuations on investment 7,064property ------- At 30 November 2007 121,270 ======= Investment property comprises a number of residential properties that are leasedto third parties under operating leases. The fair value of the Fund's investmentproperty at 30 November 2007 has been calculated on the basis of valuationscarried out at that date by the following independent professionally qualifiedvaluers with relevant recent experience: Savills Japan K.K.DTZ Debenham Tie Leung K.K.K.K. Tokyo KanteiLand Coordinating Research Inc The valuation basis has been fair market value as defined by Japanese RealEstate Appraisal Standards calculated using the income capitalization approach. The Fund has pledged approximately £67m of its investment property as securityfor the bonds payable to ORIX Corporation (Note 7). Income generated by thepledged investment properties is distributable subject to the Fund meeting itsinterest obligations on the bonds payable, the outstanding principal beinglower than 80% of the fair value of the properties and a debt-service coverageratio of 1.2 or higher being maintained. 8. Bonds payable £'000 Bonds payable 49,998 ======The maturity of the bonds payable is as follows: £'000 Between 1 and 2 years - Between 2 and 5 years 49,998 ------ 49,998 ====== The bonds payable were issued to ORIX Corporation on 29 June 2007, the principalbeing Y11,500 million with interest at a weighted average spread of 1.35% abovethe three month yen LIBOR rate paid quarterly, secured by certain investmentproperties with a fair market value of Y15,407 million (£68 million) at thebalance sheet date. The final repayment date of the principal is 27 June 2012with the option to settle part or all of the principal on any quarterly interestpayment date. The outstanding principal becomes repayable on disposal of thepledged investment properties. The interest rate is capped at 4% by use ofinterest rate cap contracts with HSBC. 9. Share premium £'000 Premium arising on issue of ordinary shares 90,000 Transaction costs on issue of ordinary shares (4,933) Conversion to special reserve (85,067) -------Balance as at 30 November 2007 - ======= On 12 January 2007 the Royal Court of Guernsey confirmed the reduction of theshare capital of the Company by way of cancellation of the Company's sharepremium account. The amount cancelled has been credited to the Special reservewhich is distributable reserve. 10. Special reserve £'000 On conversion from share premium 85,067 ------Balance as at 30 November 2007 85,067 ====== The special reserve is a distributable reserve to be used for all purposes permitted under Guernsey company law, including the buy back of shares and the payment of dividends. 11. Related party transactions Transactions between the Company and its subsidiaries which are related partieshave been eliminated on consolidation and are not disclosed in this note. Directors' fees have been disclosed in the Directors' report. There were nooutstanding fees to Directors at the end of the period. There are no other keypersonnel other than the Directors, Investment Adviser and Manager. The Fund pays fees to KKHML for its management services. The total charge tothe income statement during the period was £64,000, all of which had been paidat the end of the period. Paul Hammerstad, a director of the Company, is also adirector of KKHML. The Japan-domiciled firms in which the Company is the ultimate beneficiary payfees to KKHAM for its investment advisory services. The total charge to theincome statement during the period was £381,000 of which £12,114 was outstandingat the period end. Paul Hammerstad, a director of the Company, is also adirector of KKHAM. 12. Post balance sheet events Purchases of the following properties have been completed since 30 November2007: Property Date of Completion Purchase price (excluding costs) Y'000,000 £'000Star Heights 7 December 2007 587 3,027Trusty Chikusa Minami 21 December 2007 370 1,867Cradle Uemachi 27 December 2007 304 1,531Branche Koenji 28 December 2007 313 1,580Branche Toshimaen 28 December 2007 337 1,698Branche Nakano honcho 28 December 2007 602 3,036Branche Omori Sanno 28 December 2007 313 1,578Branche Kugayama 28 December 2007 570 2,873Branche Kagurazaka 28 December 2007 323 1,631Branche Kanamecho IV 28 December 2007 387 1,952Rainbow Pia Hara 31 January 2008 434 2,188Bravi Minami Horie 28 February 2008 3,268 16,489Wisteria Kyobashi 28 February 2008 911 4,594Branche Meguro 4 March 2008 398 2,009Utsunomiya Residence 27 March 2008 1,204 6,076 ------ ------ 10,321 52,129 ====== ====== On 14 December 2007, the Fund arranged a three year term loan facility in theamount of Y4,251 million (£21.4 million) with interest at a spread of 0.85%above the 3 month yen TIBOR rate. On 13 February 2008, the Fund arranged a two year term loan in the amount ofY2,570 million (£13 million) at a fixed interest rate of 2.24%. On 26 February, 2008, the Fund arranged a three year term loan in the amount ofY2,709 million (£13.7 million) at a fixed interest rate of 3.03%. On 27 March, 2008, the Fund arranged a three year term loan in the amount of Y700 million (£3 million) at a fixed interest rate of 3.00%. On 28 March, 2008, the Fund arranged a two year term loan in the amount ofY590 million (£2.6 million) at a fixed interest rate of 2.32%. 13. Copies of Annual Report and Consolidated Financial Statements The Financial Statements for the period ended 30 November 2007 will be sent to shareholders in due course and will be available from the Company's registered office at Investec House, La Plaiderie, St Peter Port, Guernsey GY1 3RP and on its website www.jricl.com. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
JRIC.L