In QuotedData’s morning briefing 15 March 2024:
- Digital 9 Infrastructure (DGI9) has announced that its much publicised sale of Verne Global to funds managed by Ardian France SA for up to US$575m (approximately £450m) has completed. The sale price is variable as there is an earn out feature built in that could enhance the price that DGI9 ultimately receives. Following completion, DGI9 has received the initial purchase price of US$415m (£325.8m) The purchase price also includes US$25m (approximately £19.5m) due by 26 April 2024 but maybe paid earlier if a new power agreement is entered into, and potential earn-out payment of up to US$135m (approximately £106m), which is payable subject to Verne Global achieving run-rate EBITDA targets for the financial year ending December 2026. The sale of Verne Global will now allow DGI9 to significantly deleverage its balance sheet and strengthen its financial position. £273.5m will go towards repayment and partial cancellation of DGI9’s revolving credit facility (RCF). Up to £17m will be used to pay costs incurred in relation to the Verne Transaction. Around £12m will be retained to cover future operational expenses of the Company if and when required. Finally, around £23m will be retained for prudent capital management to cover for possible future liabilities arising from certain Value-Added Tax related indemnification provisions and will be available for additional RCF repayment and cancellation if and when an insurance policy to cover these potential future liabilities will be taken out. Following receipt of the deferred payment, an additional repayment and cancellation of the RCF of approximately £19.5m* will be made, reducing the residual RCF to approximately £80m. If approved by shareholders at the upcoming General Meeting on 25 March 2024, DGI9 intends to the proceeds generated by the orderly disposal of its wholly-owned assets to fully repay and cancel the residual RCF.
- Asset Value Investors, the investment manager of AVI Japan Opportunity (AJOT) has purchased 40,000 AJOT shares in connection with its commitment to invest at least 25% of its investment management fee into AJOT shares. This purchase takes AVI’s total current holding to 1,540,000 shares.
- Phoenix Spree Deutschland (PSDL) has sold a multi-family property and made further sales of condominiums. It has notarised the sale of Donaustrasse, Neukoln for €4.8m, a value of €2,249 per sqm or a 2.6% discount to the purchase price. The company said the sale price reflected the significant investment required to modernise the property. PSDL has also sold two further condominium properties – a vacant unit in Zillestrasse for €426,600 in a bare shell condition (€4,750 per sqm and a 9.5% premium to book value), and a rented unit in Fregestrasse for €298,000 (€3,401 per sqm at a 19.6% discount to book value). The company has pending reservations for a further four units representing a combined sales volume of €1.33m and a value per sqm of €3,941. Proceeds from these asset sales will be used to repay debt and for investment in the condominium portfolio in order to prepare assets for sale.
- Helical (HLCL) has let the eighth floor of the JJ Mack Building in Farringdon, London, comprising 15,484 sq ft on a 15 year lease to Three Crowns, an international arbitration law firm. The firm plans to relocate from its existing offices at New Fetter Place in early 2025. The recently developed building provides a total of 200,611 sq ft of office space across 11 floors, alongside 5,439 sq ft of ground floor retail. The letting follows the leasing of the first, second and third floors, comprising 68,002 sq ft, to J Sainsbury. With the sixth and seventh floors, totalling 37,880 sq ft, let to Partners Group and the 13,408 sq ft ninth floor let to Corio Generation, part of the Macquarie Group, The JJ Mack Building is now 67% occupied.
We also have:
- Scottish Mortgage making available at least £1bn for buybacks over the next two years
- Energisation of NextEnergy Solar’s first two international co-investments