Ashley House PLC Update (9607T)
July 24 2015 - 2:00AM
UK Regulatory
TIDMASH
RNS Number : 9607T
Ashley House PLC
24 July 2015
24 July 2015
Ashley House plc
Update
Ashley House plc ("Ashley House" or the "Company") the health
and community care property partner provides an update to the
market.
Extra Care schemes
The Company is delighted to announce its first 60 apartment
Extra Care scheme in Grimsby has been completed and handed over to
the client, a Registered Provider. All apartments are in the
process of being let, with a substantial waiting list existing.
Initial feedback is extremely positive. A factsheet is available on
our website: www.ashleyhouseplc.com. The Company has also started
work on the next two projects in Essex with a growing pipeline
behind it. With long term funding, these two schemes will generate
revenues of c. GBP21m.
Funding update
As previously advised the Board views the securing of long term
funding for its Extra Care pipeline as crucial for the business.
The Company is pleased to report that it is currently considering
offers for long term equity funding for its Extra Care schemes from
well respected investors. The initial agreement with M&G
Investment Management Limited to fund GBP100m of senior debt is
established and is now supplemented by an offer, subject to
completion of due diligence, for development finance from National
Westminster Bank plc. Due Diligence is expected to conclude in the
next two months and the Board will at that point announce the
details. Strong funding of the pipeline will substantially complete
the repositioning of the Company's strategic focus on Extra
Care.
LIFT investment
The Company has received a proposal from a significant,
well-funded business to acquire its interest in the NHS LIFT Joint
Ventures (together the "LIFT investment"). The proposal would bring
the Company a cash receipt and importantly allow us to continue to
work within LIFT as a service provider for the acquiring entity,
delivering core Ashley House services. Whilst the cash element of
the offer is considerably lower than the book value, the directors
consider the overall package to be attractive. A completed deal
would provide a cash inflow at an important juncture in the
Company's drive to fund its growing Extra Care pipeline.
Notwithstanding being a post balance sheet event, this will entail
a significant (non cash) write down in the value of the LIFT
investment in the annual accounts for the year to 30 April 2015.
There is no certainty that this proposal will ultimately result in
a sale of the LIFT investment but it is a proposition that the
Board will explore further.
Preliminary announcement
Given the developments above and in line with last year, the
Company expects to announce its preliminary results for the year to
30 April 2015 in September along with updates on both of the
above.
Social Housing rentals
Ashley House has reviewed the provisions in the recent Budget
regarding social housing rents. The Government has now briefed that
Supported Housing, which includes the Company's Extra Care schemes,
is expected to be exempt from the new rules and will continue to
benefit from the previously announced index linked rent regime.
This will protect value and investors' confidence in our Extra Care
schemes. It also reflects the reality that schemes such as ours
save Government money whilst providing better living
environments.
Enquiries:
Ashley House plc 01628 600 340
Antony Walters
Jonathan Holmes
WH Ireland Ltd 0207 220 1666
(Nominated Adviser and broker to Ashley House plc)
Adrian Hadden
Mark Leonard
This information is provided by RNS
The company news service from the London Stock Exchange
END
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