In QuotedData’s morning briefing 9 December 2021:
- Digital 9 Infrastructure (DGI9) has bought a data centre asset and subsea fibre landing station, SeaEdge UK1, on the UK’s largest data centre campus in Newcastle for a purchase price of £15m. SeaEdge UK1 has a capacity of 10.6MW and a direct connection to the 275KV National Grid ensuring a highly resilient electrical supply of up to 80MW. The asset is occupied, and operated, by data centre operator, Stellium Data Centers Limited, via a 25-year occupational lease, with over 24 years remaining. The rent received under the lease will deliver an attractive yield and is subject to annual, upward-only inflation-linked rent reviews. SeaEdge UK1 is the UK’s only landing point for the new North Sea Connect cable (part of the advanced North Atlantic Loop fibre optic cable network, which hosts AEC-1 and AEC-2, both owned and operated by D9’s cornerstone subsea fibre platform, Aqua Comms) and is also the landing station for the NO-UK subsea cable, connecting Altibox Carrier’s Norwegian network to the North East of England, and onwards.
- Henderson European Focus (HEFT) is planning to split its shares so that shareholders will end up having ten shares for every one that they hold now. The move needs to be approved at the AGM planned for 27 January and, if approved, will be effective on 7 February 2022.
- Fair Oaks Income is investing (through the underlying Master Fund) in €28m of equity notes in Fair Oaks Loan Funding IV, a new CLO backed by a portfolio of European broadly syndicated secured loans. The manager of this CLO’s portfolio is Fair Oaks Capital Limited, the investment advisor to the company and Master Fund II. This CLO’s current target portfolio has a principal value of €400m across an expected 136 unique bank loan issuers, with an expected weighted average exposure per issuer of approximately 0.71%. The potential total return for this investment, as estimated by the general partner of the Master Fund, is 14.3% per year.
- Asset Value Investors, manager of AVI Japan Opportunities (AJOT), has launched a website “www.assetvalueinvestors.com/stopexploitingdaibiru/” which seeks to highlight what it calls “the exploitation of Daibiru Corporation (TYO 8806) (Daibiru) by its parent company Mitsui O.S.K. Lines, Ltd. (TYO 9104) (MOL)“. It wants Daibiru to withdraw its support for MOL’s 2,200 yen tender offer and resume negotiations with MOL to seek a higher purchase price.
- Civitas Social Housing (CSH) has reported a slight uptick in NAV for the six months to 30 September 2021 to 108.49p per share (March 21: 108.3p). The group’s property portfolio increased in value by 3.4% to £946.3m. Annualised rent roll was up 6.1% to £52.5m, while diluted EPRA earnings per share were down 3.6% to 3.4p. The group paid a dividend for the period of 2.74p, in line with its annual dividend target of 5.5p.
- Custodian REIT (CREI) has acquired a 45,779 sq ft retail warehouse unit in Cromer occupied by Homebase for £4.5m. The property is let on a lease expiring in July 2028 with a current passing rent of £300,000 per annum, reflecting a net initial yield of 6.29%.
- Palace Capital (PCA) has leased 11,300 sq ft of office space at its Hudson Quarter development in the City of York to Great Rail Journeys on a 10 year lease at an average headline rental of £26 per sq ft subject to a short rent free period. The tenant has a break option at the end of the sixth year. The new letting brings office occupancy at Hudson Quarter, which completed in April of this year, to 41% with a further 3,600 sq ft currently under offer.
We also have results for TwentyFour Select Monthly Income, Aberdeen Diversified Income & Growth, Schroder AsiaPacific and Henderson European Focus