Alpha Pyrenees Trust Limited Trading Update (0931A)
June 03 2016 - 1:00AM
UK Regulatory
TIDMALPH
RNS Number : 0931A
Alpha Pyrenees Trust Limited
03 June 2016
03 June 2016
Alpha Pyrenees Trust Limited (the "Trust" or the "Company")
Trading Update
Alpha Pyrenees Trust Limited today publishes its trading update
statement for the quarter ending 31 March 2016 and the period up
until the date of this announcement. The information contained
herein has not been audited.
KEY POINTS
-- MATURITY OF BORROWINGS EXTENDED TO 31 OCTOBER 2016
-- TRUST HAS THE SUPPORT OF ITS LENDER FOR AN ORDERLY
REALISATION OF ITS REMAINING PROPERTY ASSETS
-- SALES PROCESS WILL NOT RESULT IN ANY RETURN TO ORDINARY SHAREHOLDERS
-- NAV IS NEGATIVE 35.7 PENCE PER SHARE AS AT 31 MARCH 2016 (31
DECEMBER 2015: NEGATIVE 30.9 PENCE PER SHARE)
VALUATION AND NET ASSET VALUE ("NAV")
The Trust currently owns a residual portfolio of three
properties in France (located at Saint Cyr L'Ecole, Champs sur
Marne and Ivry-sur-Seine) and three properties in Spain (located at
Alcalá de Guadaíra, Écija and Zaragoza) totalling approximately
33,680 square metres (approximately 362,500 square feet) of
commercial real estate. While the properties are generally well
located they suffer from weak tenant demand at the present time
coupled with a high level of vacancy.
These properties were last valued on 31 December 2015 at
EUR29.0m (GBP22.9m at 31 March 2016 exchange rate). The next
independent revaluation will take place as at 30 June 2016.
As at 31 March 2016 the NAV is negative 35.7 pence per share.
The decrease in NAV from 31 December 2015 (negative 30.9 pence per
share) is due to the combined effect of the loss incurred in the
period (mainly finance costs and property disposals) and adverse
foreign exchange effects.
FINANCING
It was announced on 15 April 2016 that the Trust's loan
facilities with Barclays Bank PLC ("Barclays") have been extended
and the maturity date of all its borrowings has been extended to 31
October 2016.
Following the completion of a further three property sales in
February 2016, which generated sale proceeds of GBP18.4 million
(EUR24.3 million), a net repayment of borrowings of GBP17.6 million
(EUR23.3 million) was made. As at 31 March 2016, the Trust had
total borrowings of GBP79.3 million (EUR100.3 million) under its
facilities with Barclays. After the end of the quarter, a further
GBP9.2 million (EUR11.7 million) of debt repayment was made and
total borrowings currently stand at GBP70.6 million (EUR89.3
million), including rolled up interest of GBP0.5 million (EUR0.7
million).
The current interest rates will continue to apply to the
facilities during the extension period and the 2% arrangement fees
(per annum pro-rated), charged on all borrowings from 10 February
2015, are deferred to the new maturity date and will be payable to
the extent that the Trust has sufficient cash funds at that time.
No additional fee was charged on the latest extension.
SALES PROCESS
As previously reported, on 3 February 2016 the Trust sold its
properties located at Athis Mons, Aubergenville and Aubervilliers
in France, totalling approximately 59,730 square metres, for
EUR24.3 million and the sales proceeds were used to reduce the
Trust's bank borrowings.
The Trust has the support of its lender for an orderly
realisation of its remaining property assets which are being
actively marketed. As previously stated, the Board is of the view
that there will not be any value to return to ordinary shareholders
after repayment of the Trust's bank borrowings has taken place to
the extent possible.
The Trust will provide further updates in due course.
BOARD OF DIRECTORS
Subsequent to the significant progress in the sales programme
following the transactions completed over the past quarter, and the
now much reduced property portfolio, the Board has considered the
composition of the Board in terms of size and cost to manage the
completion of the sales process. As a result of this David
Rowlinson, Phillip Rose and Dick Kingston have resigned from the
Board with immediate effect. David Jeffreys and Serena Tremlett,
who have been with the Company since inception, will continue as
Directors and the Board will take responsibility going forward for
matters previously dealt with by its sub-committees. The Board
would like to take this opportunity to thank David, Dick and
Phillip for their service to the Trust.
DIVIDEND
The Trust does not pay dividends.
RENTAL INDEXATION
The INSEE Construction Cost Index ("ICC"), applicable to the
Trust's leases in France, showed an annualised increase of 0.25%
for the latest published quarter, Q4 2015, following three quarters
of negative annualised indexation.
The Spanish Consumer Price Index, applicable to the Trust's
leases in Spain, was running at an annualised rate of decrease of
1.1% at the end April 2016 having been 0.0% as at the end of
December 2015.
For further information:
Serena Tremlett, Chairman, Alpha Pyrenees Trust Limited 01481 231100
Paul Cable, Fund Manager, Alpha Real Capital LLP 020 7391 4700
For more information on the Company, please visit
www.alphapyreneestrust.com.
FORWARD-LOOKING STATEMENTS
This trading update contains forward-looking statements which
are inherently subject to risks and uncertainties because they
relate to events and depend upon circumstances that will occur in
the future. There are a number of factors that could cause actual
results to differ materially from those expressed or implied by
such forward-looking statements. Forward-looking statements are
based on the Board's current view and information known to them at
the date of this update. The Board does not make any undertaking to
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise. Nothing in
this trading update should be construed as a profit forecast.
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTLLFLRRVIFIIR
(END) Dow Jones Newswires
June 03, 2016 02:00 ET (06:00 GMT)
Alpha (LSE:ALPH)
Historical Stock Chart
From Mar 2024 to Apr 2024
Alpha (LSE:ALPH)
Historical Stock Chart
From Apr 2023 to Apr 2024