Alpha Real Trust Limited ART Notes Significant Uplift in IMPT Value (6888B)
April 05 2017 - 7:53AM
UK Regulatory
TIDMARTL TIDMIMPT
RNS Number : 6888B
Alpha Real Trust Limited
05 April 2017
5 April 2017
ALPHA REAL TRUST LIMITED NOTES SIGNIFICANT UPLIFT IN IMPT
VALUE
The Board of Alpha Real Trust Limited ("Alpha Real Trust") notes
the announcement by Industrial Multi Property Trust plc ("IMPT") on
4 April 2017 regarding the revaluation of its property portfolio,
as carried out by Cushman & Wakefield ("C&W") as at 31
March 2017.
The announcement states that the value of IMPT's property
holdings has increased by GBP1.3 million to GBP86.2 million, which
is equivalent to 15.5p per share.
As previously announced, on 20 February 2017 and 9 March 2017,
the Board of Alpha Real Trust believes that the offer by Hansteen
Holdings plc ("Hansteen") of 300p per ordinary share for the entire
issued ordinary share capital of IMPT grossly undervalues IMPT and
has resolved to reject the offer.
In addition to this recent valuation uplift, in Alpha Real
Trust's 9 March 2017 announcement reference was made to IMPT's
circular of 1 December 2016 in which JLL noted points regarding
stamp duty land tax and portfolio premium as points which a
purchaser may take into account when negotiating a property
acquisition. The Alpha Real Trust board also noted the unused UK
tax losses and capital allowances which could represent a deferred
tax asset of c.GBP2.1 million assuming the current 20% UK income
tax rate applicable to non-resident landlords (equivalent to 25.0p
per IMPT ordinary share), in the event that IMPT has taxable income
in future years, against which these tax losses and capital
allowances could be offset.
In summary, the 31 December 2016 Adjusted NAV of 307.4p per
ordinary share, together with the increased valuation of properties
reported by IMPT which equates to 15.5 pence per ordinary share,
potential stamp duty land tax savings and available UK tax losses
and capital allowances totalling up to GBP4.1 million (48.8p per
IMPT ordinary share),and assuming no other changes in IMPT's
adjusted NAV, equates to 371.7p per IMPT ordinary share - which is
in excess of the Hansteen offer of 300p per IMPT ordinary share. In
addition, whilst JLL comments on a potential portfolio premium, no
estimate for this amount was provided.
Whilst acknowledging that the external valuation as at 31 March
2017 is only 3 months since the 31 December 2016 valuation, the
increase in value indicates a strengthening in the value of the
IMPT property portfolio.
This latest IMPT announcement further supports the board of
Alpha Real Trust's belief that the offer by Hansteen grossly
undervalues IMPT and its decision to resolve to reject the
offer.
For further information please contact:
Alpha Real Trust Limited
David Jeffreys, Chairman, Alpha Real Trust +44 (0) 1481 231 100
Brad Bauman, Joint Fund Manager, Alpha Real Trust +44 (0) 20 7391 4700
Panmure Gordon, Broker to the Company
Richard Gray / Andrew Potts +44 (0) 20 7886 2500
This information is provided by RNS
The company news service from the London Stock Exchange
END
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