LMS Capital exits Brockton Capital LLP – In 2006 LMS, together with 3 other cornerstone investors, backed the establishment of Brockton Capital LLP, a private equity real estate investment adviser, and became an investor in Brockton Capital Fund I LP, a real estate investment fund. The investment in the LLP gave LMS the right to participate in a share of any incentive payable in relation to the performance of the fund and subsequent Brockton-advised funds.
The majority owners of the LLP have agreed terms for a sale of the business. Assuming there are no regulatory or other hiccups, the sale will result in the realisation by LMS of its minority investment of 6.67% in the LLP but it will keep its incentive share (valued in the accounts at £97,000).
The net proceeds and increase in net asset value for LMS are expected to be in the region of £2.5 million. The sale of the LLP has no impact on LMS’ holding in the fund (valued at £4.5 million at 30 September 2017).
Impact on estimated 31 December net asset value
The 31 December 2017 net asset value will be adjusted to reflect the increase resulting from this transaction. On 24 January 2018, based on information available at that time and subject to further evaluation and completion of the annual audit, the company announced an estimated 31 December 2017 net asset value in the region of GBP61 million (75p per share). Taking account of the conditional sale of the LLP, the board has adjusted its estimate of net asset value at 31 December 2017 to £63.5 million (78p per share). This estimate remains subject to further evaluation as well as the completion of the annual audit.
LMS : LMS Capital exits Brockton Capital LLP