Energiser Investments PLC Investment in Secured Property Loan (5158E)
February 12 2018 - 2:00AM
UK Regulatory
TIDMENGI
RNS Number : 5158E
Energiser Investments PLC
12 February 2018
12 February 2018
Energiser Investments plc
('Energiser' or the 'Company')
Investment of GBP494,100 in a 7.5% p.a. Short Term Loan Secured
on Property in Croydon
Energiser Investments plc is pleased to confirm it has invested
GBP494,100 in a short term loan secured on an office property in
Croydon.
The loan represents 30% of the estimated current value of the
property and the interest is well covered by rental income at a
ratio of 4:1 (rent:interest). The gross interest paid on the loan
is 7.5% p.a. The loan has a duration of nine months at which point
the investment will be repaid. The property value would have to
fall by more than 70% for the loan principal to be at risk. A six
months interest reserve is held back from the borrower as a further
guarantee of the interest payment.
The loan is secured on an office property located in Croydon of
21,900 sq ft with potential to convert into 71 residential units.
It is let to a number of commercial tenants who can be removed at
short notice to enable the residential conversion.
Energiser views the ongoing investment of part of its portfolio
into short term loans secured on property as a way to access higher
income returns for relatively low risk. The Company has been active
in short term secured lending for a number of years, having
successfully provided secured development finance to:
- the Wellingborough portfolio which later acquired, completed
and recently sold (RNS 15 November 2017), and
- the Kingswood, Surrey portfolio, loan which was successfully
repaid with interest in Q2 2017 (RNS 20 April 2017).
Energiser's strategy as an Investment Company is to invest in
quoted and unquoted companies to achieve capital growth. The
Group's focus is on the property sector where it invests directly
or through companies in property equity and loan transactions, and
property operating businesses. The Board will update shareholders
on other potential investment transactions shortly.
For further enquiries please visit
www.energiserinvestments.co.uk or contact:
Energiser Investments Plc
Dominic White, Chief Executive 01494 762450
Nishith Malde, Director
Cairn Financial Advisers LLP
Jo Turner 020 7213 0880
Sandy Jamieson
This information is provided by RNS
The company news service from the London Stock Exchange
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