In QuotedData’s morning briefing 17 January 2022:
- Digital 9 Infrastructure (DGI9) has started a consultation process with shareholders regarding potential amendments to its investment policy which currently restricts its ability to invest more than 20% of gross assets in any single asset or investee company. It is proposed that this is increased to 25%. Meanwhile the term ‘gross asset value’ will be changed to ‘adjusted gross asset value’ to clarify that any third party debt is included in the calculation of gross assets of DGI9. Furthermore, if an investee company develops or acquires an additional asset, which requires further investment from DGI9, such investment will be considered separately.
- Tufton Oceanic Assets (SHIP) has agreed to divest the containership Patience for $19.35m and acquire a Handysize Bulker for $23.75m. The divestment of Patience will produce a realised net IRR of c.23% and realised net MOIC of 2.1x. It was acquired in March 2018 for $11m. The Handysize Bulker is being acquired below DRC and has a fixed rate time charter of 18 to 24 months producing a net yield over 15%. It is in the top quartile of fuel efficiency in its market segment but will be evaluated for further improvement, including the retrofit of energy saving devices.
- One of JPMorgan Global Core Real Assets’ (JARA) underlying strategies has reduced its fees and is passing the associated economies of scale onto investors. JARA is delighted to be able to pass this fee reduction, expected to be valid from 1 January 2022, onto its investors. This will see the fee for net assets up to £100 reduced from 0.97% to 0.93; for net assets up to £300m reduce from 0.95% to 0.91%; for net assets up to £500m reduce from 0.90% to 0.86% and for net assets up to £1bn reduce from 0.85% to 0.81%. The total overall management fee payable to JPMAM is the aggregate of the management fee charged by the underlying strategies and the company level management fee calculated at the rate of 0.05% per annum but does not include any performance fees charged by the underlying strategies.
- Palace Capital (PCA) has acquired 22 Market Street, an office building in the centre of Maidenhead, Berkshire for £10.25m, reflecting a net initial yield of 6.83%. The transaction has been funded using both the existing debt facilities and proceeds from the company’s £30m disposal strategy. The property comprises 21,852 sq ft across three floors and is fully let on a 10 year lease, from August 2021 with a tenant break option at the end of the fifth year, to Techtronic Industries EMEA Ltd, a subsidiary of Hong Kong listed Techtronic Industries, delivering an annual rent of £718,475. Two small retail units on the ground floor bring the total net income from the asset to £747,374 per annum.
- In its latest quarterly newsletter, AVI Japan Opportunities said “We continue to see an attractive investment environment and have identified six high conviction opportunities, comprising three new and three existing companies where AJOT could increase its position. To capitalise on these opportunities, we are exploring the most appropriate way of funding them, including a potential equity raise under the company’s existing authorities. Alongside this option we are considering the possibility of increasing gearing, and/or recycling of some of the existing portfolio. The six identified opportunities could account for up to 35% of AJOT’s NAV, as the new capital is being sought to build large stakes to accelerate events and realise potential upside.”
We also have news of an investments by Tritax EuroBox and BMO Commercial Property Trust , interim results from Ruffer and an update on BB Biotech.