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Longbow makes loans against Kingston property

Longbow makes loans against Kingston property – ICG Longbow has completed a new loan to a privately-held property company with an aggregate value of GBP9.0 million.

The ‘Quattro Loan’, which matures in January 2021, carries an initial LTV ratio of 83.7% and is secured by first ranking charges against a portfolio of three mixed-use properties located in the London Borough of Kingston. In the company’s opinion, as advised by the investment adviser, this portfolio provides significant value creation opportunities through implementation and realisation of residential planning permissions. As well as a coupon, the loan contains a profit participation component to allow the company to share in this expected value growth. The loan is in accordance with the revised investment policy, approved by shareholders at the EGM in March 2017.

The company will initially finance a GBP6.0 million participation in the Quattro Loan, which reinvests substantially all of the cash held by the company following the repayment of the Lanos (York) loan.  A GBP3.0 million minority participation is held by Intermediate Capital Group plc, and the company has the right to acquire this participation at par within 90 days.

Based on the GBP6.0m loan participation, the weighted average investment coupon increases to 6.22% (31 July 2017: 6.11%), the loan to value (LTV) increases to 59.3% (31 July 2017: 57.9%) and weighted average interest cover ratio (ICR) reduces to 215% (31 July 2017: 222%).

LBOW : Longbow makes loans against Kingston property

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