In QuotedData’s morning briefing 19 October 2022:
- Fair Oaks Income’s (FAIR’s) 2021 prospectus stated that, in the event that the Realisation Shares and 2021 Shares trade at discount to any quarter end NAV, calculated on the date that the relevant NAV is published, 25% of that quarter’s investment management fees (in respect of the Realisation and 2021 Shares) would be reinvested to purchase shares in the secondary market. This conditions were met for the most recent NAV announcement and so, following FAIR’s NAV announcement on 12 October 2022, regarding the NAV as at 30 September 2022, Fair Oaks Income Fund (GP) Limited has purchased 30,599 Realisation Shares and 232,474 2021 Shares in the secondary market.
- Digital 9 Infrastructure (DGI9) has announced that it has completed its £300m investment in Arqiva Group Limited, which was originally announced on 27 June 2022. DGI9 now owns a 51.76% economic stake in Arqiva, which is a UK-based data, network, and communications service provider that DGI9 describes as a leading UK provider of TV and radio broadcasting and benefits from a strong Internet of Things (IoT) platform. DGI9 says that it is excited for the opportunity to grow Arqiva’s existing national IoT platform, while benefiting from its underlying regulated cashflow. Between the original announcement and completion of the Acquisition, Arqiva has successfully refinanced a £625m junior bond (this was due to mature in September 2023), using existing cash resources and a new £450m term loan (this is now due for repayment in March 2028). DGI9 says that, as of today, Arqiva benefits from a stable capital structure with only 13% of Arqiva’s debt needing to be refinanced in the next 5 years, all of which is BBB rated.
- Warehouse REIT (WHR) has completed two long-term lettings in Plymouth and Coventry, totalling 205,000 sq ft. The deals have been struck at an average 24% premium to estimated rental values (ERVs) and 30% above the previous passing rents, and will generate over £1m of annual contracted rent. At its urban warehouse in Coventry, the company has agreed a 140,000 sq ft letting to Evtec Aluminium Ltd, an automotive component manufacturer, at a rent representing a 17 % uplift on the 31 March 2022 ERV and 26% uplift on the previous passing rent. The 10-year lease with no break will generate contracted rent of £623,000 per annum, equating to circa £4.50 per square foot. In a second transaction, the group has completed a 66,000 sq ft letting to leading third party logistics provider Hermes Parcelnet (Evri), at its central Plymouth warehouse, following a targeted capital expenditure programme. Evri has signed a new 10-year lease with no break clause, at an annual rent of £460,000, reflecting an uplift of 36% on the previous passing rent. Having acquired the property in 2017, WHR commenced a £1.7m programme of works during 2021 on expiry of the former occupier’s lease, which included the replacement of the building’s roof, the installation of new LED lighting throughout, new EV charging points, as well as extensive internal and external redecoration. The building’s EPC rating was significantly improved from a D to a high B.
We also have annual results from Baillie Gifford Japan and a significant debt refinance from Grit Real Estate