Press Release - Full Repayment of Atlas Loan

Press Release

RECI RECEIVES FULL REPAYMENT OF REAL ESTATE LOAN FOR THE DEVELOPMENT OF THE ATLAS BUILDING

·; RECI is fully repaid 33 months prior to practical completion

·; RECI realises a profit multiple of 1.51x at exit

London, 18 November 2019: Real Estate Credit Investments Ltd "RECI" is pleased to announce that it has received a full repayment of a loan for a mixed-use development in Old Street, London.

The Atlas building is an iconic development featuring 302 apartments over 38 residential floors, which combines the sophistication of the city with contemporary urban style. Every detail has been sympathetically considered and designed, providing a high specification residential offering.

RECI's Investment Manager, Cheyne Capital "Cheyne", was approached in 2016 to refinance a mezzanine loan, as the existing mezzanine lender (a US-based credit opportunity fund) was looking to exit the UK market shortly after the Brexit referendum vote.

The sponsor, Rocket Properties, is a highly experienced developer with a successful track record of development in the office and residential space in London.

RECI participated pari passu alongside Cheyne's other real estate funds, in a £87.5m mezzanine loan, at 47%-73% LTC and 38-57% LTGDV ranking behind a senior loan of £163.0m, giving an exit basis of £250.0m against a GDV of £433.5m.

At closing, the deal had a significantly de-risked day one position, as the sponsor had fully pre-let the office space and secured £145m of residential pre-sales to create total security value of £245m against the mezzanine exit basis of £250m. By November 2016, the cumulative security from additional pre-sales was £251m, at which point the mezzanine loan had broken even - 33 months before practical completion. At exit, RECI realised an attractive return with a profit multiple of 1.51x. The exit was from a combination of residential pre-sales and refinancing of the office space.

ENDS

Media:

Cheyne Capital: Sophie Turner

[email protected]