Alpha Real Trust announces tender alongside results – Over the year to 31 March 2019, Aplha Real Trust’s NAV rose from 172.9p to 204.3p. The quarterly dividend has been upped to 0.8p from 0.6p. The company sold its Frankfurt data centre site for EUR44.8 million and the Monk Bridge, Leeds Private Rented Sector residential site for GBP15.2 million.
The secured loan portfolio almost tripled, with £36.1m invested at 31 March 2019; post year end, further loans totalling £4.7m have been funded.
At the H2O shopping centre in Madrid, following record visitor numbers in 2018 the positive trend has continued in 2019 with a 3.3% increase recorded in the three months to 31 March 2019.
Alpha Real Trust has the authority to buy back 16,718,895 shares (24.99% of the company) – this was granted by shareholders on 8 January 2019. The Takeover Panel also granted a waiver at this time (so that the effect of buying back shares would not trigger a compulsory takeover by the largest shareholder – it and the other entities ion its concert party [that’s the technical term for this] might end up owning almost 54% of the company if the tender is taken up in full – they aren’t going to be participating in the tender). Since the the company has sold its data centre site in Frankfurt and “Monk Bridge” residential development site in Leeds, freeing up funds for new investments and the tender. The company has a new plan to invest up to £85m in secured senior and mezzanine loans, repositioning the portfolio to focus on income returns rather than capital gains. Given this significant shift in the portfolio, the board believes it is appropriate to make a return of capital by way of tender offer.
The tender will be for up to 16,666,771 shares (24.85% of the company) and will be conducted at a fixed price of 175p (a premium of 15.5% to the average middle market closing price for the last 30 days and a discount of 14.3% to the NAV at 31 March 2019 (204.3p). The last date for submitting the relevant forms is 5 July 2019.
ARTL : Alpha Real Trust announces tender alongside results