9th Jun 2005 07:02
Insight Foundation Property Tst Ltd09 June 2005 NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES,CANADA, AUSTRALIA OR JAPAN. 9 June 2005 Insight Foundation Property Trust Limited Placing and offer for subscription of up to 100,000,000 C shares at 100p per C share The Board of Insight Foundation Property Trust Limited (the "Company" or "IFPT")announces that it intends to launch an issue to raise up to £100 million bymeans of a placing and offer for subscription of C shares. The proceeds of the C share issue will be used to take advantage of currentmarket conditions to acquire properties in order to re-weight the Company'sinvestment portfolio towards areas of the property market which the managerbelieves will enhance returns for investors. The Company has agreed to acquire two properties and actually exchangedcontracts on one at a price of circa £42m. It has a number of other propertiesunder active consideration. These properties comprise central London and SouthEast office buildings where the Investment Manager (the "Manager") believes thatthere are attractive opportunities for growth in income. Rationale for the issue The Company's primary rationale for the fund raising is to grow the Company andenhance long term returns for shareholders. • The current portfolio has performed well. The Manager wishes both toretain the large majority of the current portfolio but expand the portion of itthat is allocated to central London and South East office markets, where it seesthe opportunity to improve returns through rental growth and NAV growth forshareholders. • Broadening the spread of assets and tenants will further add diversityto the portfolio. • The enlargement of the Company's investment portfolio will also bepartially financed through the additional tranche of the securitisation facilityat an attractive rate of borrowing. • It is expected that the acquisition of these properties will initiallyhave a neutral impact on earnings but subsequently lead to faster growth. Benefits of the C share issue • The C shares will be issued at 100p per C share and will convert on anet asset value to net asset value basis. The see through yield to new C shareholders is estimated to be about 6.2% post issue. • The C share offer will be structured so as to avoid dilution forexisting shareholders who will not be disadvantaged by the costs of the fundraising. • Enlarging the Company will mean the fixed costs of operating thebusiness are spread across a greater number of assets. • The C shares will convert into ordinary shares once the C share pool issubstantially invested. The conversion could take place almost immediately(given the quantum of property under offer and with contracts exchanged). • Broadening the spread of investors within the Company should addfurther diversification to the shareholder list and a larger free float. The Board believes that the Manager's approach to transactional activity, theintensive management of the Company's assets and innovative financing, willcontinue to play a vital role in delivering positive results. Timetable The Company anticipates formally launching the C share issue and expects to postformal documentation to shareholders to seek their approval for the issue inearly July 2005. Andrew Sykes, Chairman of Insight Foundation Property Trust Limited said "Theproposed C share placing will enable the Company to improve returns to investorsand re-focus the portfolio most cost effectively towards areas of the propertymarket where the manager believes there are attractive opportunities for addedvalue." Enquiries: Duncan Owen (Insight Investment Management) Tel: 020 7321 1677 Richard Cotton / Angus Gordon Lennox (JPMorgan Cazenove) Tel: 020 7588 2828 Stephanie Highett / Dido Laurimore (Financial Dynamics) Tel: 020 7831 3113 This announcement is not for distribution directly or indirectly in or into theUnited States, Canada, Australia or Japan. This announcement does not constitutean offer to sell or issue or the solicitation of an offer to buy or acquire Cshares in the capital of IFPT in the United States, Canada, Australia or Japanor any jurisdiction in which such an offer or solicitation is unlawful. The Cshares in IFPT referred to in this announcement have not been and will not beregistered under the Securities Act and may not be offered or sold within theUnited States absent registration or an exemption from registration. No publicoffering of securities will be made in the United States, Canada, Australia, orJapan. This announcement has been communicated by JPMorgan Cazenove Limited which isauthorised and regulated in the United Kingdom by the Financial ServicesAuthority and does not constitute an offer to sell or a solicitation of an offerto purchase any securities. The price of shares and the income from them may godown as well as up and investors may not get back the full amount invested ondisposal of the shares. Investments in property are relatively illiquid andmore difficult to realise than equities or bonds. Yields may vary, and are notguaranteed. There is no guarantee that the market price of shares in the fundwill fully reflect their underlying NAV. JPMorgan Cazenove Limited is acting exclusively for IFPT and no one else inconnection with the placing and offer and will not be responsible to anyoneother than IFPT for providing the protections afforded to clients of JPMorganCazenove Limited nor for providing any advice in relation to the placing andoffer or any other matters referred to in this press announcement. END This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Schroder Real