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QuotedData’s morning briefing 16 September 2021

In QuotedData’s morning briefing 16 September 2021:

  • GCP Asset Backed Income says that on 15 September 2021 certain entities within what it terms “the Co-living Group” were placed into administration. We highlighted the fund’s problems with this loan on Monday. GCP Asset Backed Income, its co-lenders and an operator have formed a syndicate to fund an acquisition vehicle to take control of six of the Co-living Group’s assets with a view to maximising their returns. The six assets are a split of three operational assets and three development assets. Five of the assets are situated in London with one asset in New York. The operator is managed by a team that has developed and operated in excess of 25,000 student accommodation and co-living beds. As part of the proposed transaction, some of the existing debt from the Co-living Group would be assumed by the acquisition vehicle. This, together with the funding provided to the acquisition vehicle to fund the credit bid, is intended to be repaid as assets are disposed of. The terms of the proposed transaction are still being finalised and further information will be provided to investors as matters progress. The NAV announced on 13 September assumes that this goes through. The syndicate will also be focused on unlocking value from the remaining assets of the Co-living Group which are subject to the security provided to the syndicate. No recoveries from such remaining assets are reflected in the NAV. There will be an investor webinar to discuss the Co-living Group loan on Monday 20 September at 10.00 am. Please contact  zoe.french@graviscapital.com to register for this. In addition, the investment manager will be available to hold one-to-one discussions with investors. [This confused us no end – there is a US company called Coliving – not the same thing! Apologies if we misled any of you and apologies to the US coliving.com who we initially linked to the story. The actual borrower is The Collective]
  • Electra, which is soon to be renamed as Unbound, says its Hostmore business (principally TGI Fridays but also a brand called 63rd and 1st), which it intends to spin out, reported like for like growth versus 2019 averaging +11.8% over the 16 week period since the resumption of restricted indoor dining on 17 May. However, adjusting this for VAT suggests the business shrank by 0.3%. Things are better since restrictions were relaxed further on 19 July – here the like-for-like numbers versus 2019 are +2.6%. Hostmore is opening its next two 63rd+1st sites – in Glasgow later in September and Harrogate in November – following a successful launch in Cobham earlier this year in May.
  • AVI Japan Opportunity was ahead of its benchmark over the six months ended 30 June 2021 with a NAV return of 2.7%, a share price return of 2.5% and a benchmark return of 1.4%. The managers note that Japan was slower than the US, UK and Europe to approve and roll-out a vaccine, and this appears to have impacted stock market performance. In addition the yen depreciated against the pound by 8%. AVI submitted shareholder proposals to seven companies’ June AGMs, subsequently withdrawing four after shareholder friendly actions were taken by management.
  • Foresight Solar says its NAV edged up over the first half of 2021 despite the underperformance of the assets in the Australian portfolio due to lower than expected irradiation levels affecting the Australian portfolio and negative power pricing events driven by the extensive maintenance works on the Queensland to New South Wales interconnector, affecting the performance of the portfolio assets located in Queensland during the period as the assets ramp down production. The works are expected to last until October 2021.
  • Hg Capital sold Achilles “a global leader and partner of choice for supply chain risk and performance management“. The transaction values the trust’s investment in Achilles at approximately £24.0m. This would represent an uplift of £4.0m (20% or 0.9 pence per share) over the carrying value in the NAV at 31 August 2021.
  • Aquila European Renewables says that the bridge financing that it provided to “The Rock”, a project also known as Øyfjellet Wind Farm, has been repaid following the closing of an EUR235m US Private Placement and an EUR35.6m Junior Nordic Green Bond for the project. The company expects to receive total proceeds of approximately EUR 23m, comprising about EUR 19m representing the full repayment of the bridge (principal drawn to date, plus accrued interest) and EUR 4m in surplus capital.

We also have some good news from Apax Global Alpha and some more potential good news from Schroder UK Public Private

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