Audioboom Grp. Regulatory News (BOOM)

17 Apr 2007 14:04

Off-Plan Fund Limited (The)17 April 2007 For Immediate Release 17 April 2007 The Off-plan Fund Limited Capital increase and agreement with the Consensus Group Highlights €20% increase in issued shares •Issue price 95p per new share •Issue reserved for Elsina Limited •Co-investment and co-operation envisaged •Funds to be used to finance strong deal pipeline Details The board of The Off-plan Fund Limited ("the Fund"), which specialises in theprovision of forward finance to UK house builders, is pleased to announce of theissue of a further 1,858,850 shares at a price of £0.95p per share - a 20%increase in the number of issued shares. The issue price compares with theend-December 2006 Red Book NAV* of £0.87p and the current share price of £0.84p.The issue price represents a 5% discount to the estimated Red Book NAV after thecompletion of the recently announced Tring and Hayes deals (100.4p). The issue is exclusively to Elsina Limited ("Elsina"), under advice from itsduly appointed investment advisors Consensus Business Group Limited ("CBG").Elsina is ultimately owned by Investec Trust (Guernsey) Limited, as Trustees forthe Tchenguiz Family Trust. Following the capital increase the number of shares in issue will be 11,153,108,with the interest of Elsina increased from its current 4.3% to 20.25% of theexpanded capital base. The proceeds of the issue will be used to finance the Fund's strong investmentpipeline. CBG will be offered the opportunity to nominate an additional director forappointment to the Fund's board. The Fund and CBG have further agreed to use their reasonable commercialendeavours to enhance co-operation between the two companies in order to furthertheir joint and separate property interests. Co-investment opportunities will beconsidered, potentially enabling the Fund to undertake larger deals than in thepast. Application has been made for the new shares to be admitted to trading on AIM.It is expected that admission to AIM will become effective, and dealings in suchnew shares will commence, on 18 April 2007. The chairman of The Off-plan Fund, Graham Berry, said: "We are delighted that an investor of the calibre and expertise of the ConsensusBusiness Group has recommended the increase of Elsina's shareholding in the Fundand we look forward to welcoming a representative of the group to the board. Wehave identified a number of complimentary areas of activity with the ConsensusBusiness Group's involvement in mortgage provision, estate agency and groundrents and their offering of broadband, intercoms and security systems willenhance the service we can offer to prospective purchasers and providedevelopers with the opportunity to improve their offering in relation to thebalance of the market. We look forward to developing a long and closerelationship with the group." List of Contacts Development Capital Management (020 7355 7600)Roger HornettAndrew Gardiner Numis Securities (020 7776 1500)Hugh JonathanCharles Farquhar Buchanan Communications (020 7466 5000)Charles RylandIsabel Podda * The nature of the Fund's investments mean that, under current accountingstandards, the discounts to market value achieved by the Fund cannot berecognised in the reported balance sheet. The Fund therefore obtains anindependent 'Red Book' valuation of the assets within the property portfolio inorder that shareholders can identify this additional value. The Red Book is theAsset Valuation Practice and Guidance Notes of the Royal Institution ofChartered Surveyors and is the industry standard method for valuing investmentproperties. Notes to Editors: •The Fund is managed by Development Capital Management (Jersey) Limited •Successfully floated on AIM on 12 December 2005 the Fund raised a further £6.8m increasing the total assets to £8.6m. •The Fund provides a form of mezzanine finance through the acquisition of UK residential property, sold forward by developers as a means of securing better debt finance. The Fund then looks to sell the properties prior to completion. By utilising only the deposit and purchasing at a discount, the investment becomes highly geared, as do the potential returns. •Working with a number of developers, the Manager has been reviewing sites at the earliest stages of development. This approach allows the Fund to act as a strategic partner, building a relationship with the developer throughout the construction and marketing process and also enabling the Fund to make investments on terms that may otherwise not have been achieved. This information is provided by RNS The company news service from the London Stock Exchange