In QuotedData’s morning briefing 9 October 2024:
- RIT Capital Partners (RCP) has a new independent non-executive director and member of the Audit and Risk Committee, Helena Coles. Helena has extensive international experience and spent most of her career as a portfolio manager. She also brings valuable perspectives from asset owners and a UK regulator. She co-founded and built an asset management firm in a joint venture with State Street Global Advisors, focused on Asian and emerging markets equities. She previously held senior roles at Kleinwort Benson in Hong Kong in investment management and investment banking. Helena is also a non-exec of HgCapital Trust, JPMorgan Emerging Markets, and Schroder Japan. She is a member of the investment committee of the Joseph Rowntree Charitable Trust and was previously their independent investment adviser for many years. She was also a non-exec of Shaftesbury Capital, and has held roles at the Prudential Regulation Authority in banking supervision and at Fidelity International in sustainable investing.
- Crystal Amber (CRS) is asking its shareholders to approve a B share scheme – to make it easier to return cash to them as it winds down. There’s a meeting on 28 October to approve this. The portfolio has been reduced to stakes in De la Rue (where we are waiting to see if a formal bid will be tabled), Morphic Medical, about 10% in smaller holdings, and some cash (including the proceeds of the sale of its remaining deferred consideration units relating to the bid for Hurricane Energy).
- Life Science REIT (LABS) has signed Pro Cam UK Limited, an agri-tech business, to a new lease at Cambourne Park Science & Technology Campus. The company is downsizing from Building 2020 (where it currently occupies 7,400 sq ft) to Building 2030 (where it will take 4,300 sq ft of space ). The lease becomes effective on completion of Pro Cam’s fit out of its new space, which is expected to be in December. Pro Cam has agreed a new five-year lease at an increased rent of £25 per sq ft, up 8.2% compared to its current rent of £23.10 per sq ft. The rent will increase to £30 per sq ft in year four. LABS said that it may repurpose the vacant space at Building 2020 into a fully fitted lab (current refurb projects in the building are set to deliver a 7% yield on cost and a profit on cost of 25%). LABS also said that over 90% of the 44,500 sq ft of vacant space at Cambourne Park is now under offer or in advanced negotiations.
- Hammerson (HMSO) has set out the final outcome of the new 12-year £400m bond issuance and accompanying tender of the company’s outstanding bonds maturing in 2026 and 2028. The new bond was priced at a coupon of 5.875%, representing a spread of 183 basis points over the reference gilt rate. The company said that strong demand led to peak order book in excess of £2.6bn (over 7x subscribed). The company repurchased a total of £411.6m bonds, comprising £168.4m of 6% 2026s and £243.2m of 7.25% 2028s. Therefore, the annualised net interest benefit to HMSO is £3.6m per year (around £0.8m for the financial year ending 2024). This reduces the weighted average gross interest from 3.8% to 3.6% and extends Hammerson’s weighted average debt maturity from 2.9 years to 5.2 years. The refinancing is largely leverage neutral, with pro forma LTV at 30 June 2024 of 25.5% and net debt-to-EBITDA of 5.4x.
- Schroder European REIT (SERE) reported a second successive quarter of stable valuations in its portfolio, which was valued at €208.1m at 30 September 2024 reflecting a marginal decrease of -0.1% (30 June 2024 +0.1%). The company said that recent European central bank rate cuts are expected to have a further positive impact on investor and occupier confidence, liquidity and values. Two properties in its portfolio increased in value over the quarter – the Cannes Car Showroom increased 2.9%, driven by index-linked income growth of 5%; and the Stuttgart office increased by 0.3%. All other property values remained flat, except for the mixed-used data centre in Apeldoorn which reduced by 3.2%, due to the declining remaining lease term.
We also have:
UIL thinking of going private after bout of poor performance
Fidelity Emerging Markets delivers welcome performance improvement
