(Alliance News) - JZ Capital Partners Ltd on Thursday said write-downs in the value of certain real estate investments led to a drop in net asset value for financial 2020 and the Covid-19 pandemic is likely to have a "significant and adverse" impact on those real estate investments.
The London-listed fund that invests in US and European micro-cap companies and US real estate added it has appointed Ashley Paxton as an independent non-executive director and that Tanja Tibaldi has decided to retire from the board.
The board changes are with effect from the company's annual general meeting in August. Paxton, a chartered accountant, was previously C.I. Head of Advisory for KPMG in the Channel Islands, a position he held from 2008 through to his retirement from the firm in 2019.
For the year to February 29, the company's net asset value declined to USD6.14 per share from USD10.04 a year ago. Total NAV fell to USD475.7 million from USD810.2 million.
During financial 2020, JZ Capital realised USD148.2 million from sale of its investments. At the of the period, the company had investments in 29 US micro-cap businesses, 13 European micro-cap companies and some investments in US real estate.
On Covid-19 impact, the company said it is difficult to accurately gauge the potential impact but the virus outbreak is currently having a negative impact on several of the company's real estate assets, although the exact nature, extent and duration of the impact on the entire portfolio of investments is not yet known and cannot be accurately assessed with certainty.
JZ Capital, due to the significant losses in its real estate portfolio and poor performance reported during financial 2020, has decided to seek shareholder approval to realise the maximum value of its investments and, after repayment of all debt, to return capital to shareholders.
Chair David Macfarlane said: "The Covid-19 crisis has delayed the timetable for achieving this, but the board believe that substantial progress can be made when the crisis lifts."
Shares in JZ Capital were up 2.1% at 97.00 pence each in London on Thursday afternoon.
By Tapan Panchal; tapanpanchal@alliancenews.com
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Jz Capital (JZCP)