Audioboom Grp. Regulatory News (BOOM)

5 Mar 2007 07:05

Off-Plan Fund Limited (The)05 March 2007 For Immediate Release 5 March 2007 The Off-plan Fund Limited Contracts signed in respect of new developments at Tring and Hayes The Board of The Off-plan Fund Limited (the "Fund"), which specialises inproviding forward finance to UK housebuilders, is pleased to announce theexchange of contracts for the purchase of 38 apartments to be built at aproposed development in Tring, Hertfordshire and 31 apartments to be built inHayes, Middlesex. Tring, Hertfordshire •The development consists of 38 new-build two bedroom apartments with parking and a total of 26,860 square feet. •Construction of the development is expected to commence within the next 3-6 months subject to the establishment of a s106 agreement. The apartments are due for completion in mid 2008. As part of the agreement the Fund may rescind on those units selected as part of a s106 affordable housing requirement. •The site adjoining Brook Street is well located; within half a mile of Tring town centre, approximately 15 miles north of Watford and 40 minutes commute by train from London Euston station. •The Fund has agreed to pay £218 per square foot (a total of £5.86m) on completion, a discount of 27.1% to the Red Book valuation provided by independent valuers, Douglas Duff of £299 per square foot (£8.03m). •The Fund will pay a 5% deposit (£292,774) once all permissions are complete. This will then be held in escrow pending completion. •Should the Fund achieve the Red Book valuation for this site, taking into account the likely s106 requirement, it would generate a profit of £558,000, a 6p uplift on the Red Book NAV. •The Fund's unique financing model has enabled it to secure a very competitive purchase price in a beneficial partnership with the developer. Hayes, Middlesex •The Fund has also agreed to purchase 31 new-build studio, one, two and three bedroom apartments with parking, comprising 18,063 square feet, from the same developer at a proposed development at Yeading Lane, Hayes in Middlesex. •The agreement is conditional upon the Developer obtaining planning permission and securing the remaining portion of the site. •Construction of the development is expected to commence later in the year once the above conditions are satisfied. •The site has excellent commuting links; being close to the M4, M40 and Heathrow Airport together with good rail and underground links to central London. In addition a number of blue chip employers are located in the area. •The Fund has agreed to pay £253 per square foot (a total of £4.57m) on completion, a discount of 31.6% to the Red Book valuation of £393 per square foot (£7.1m) also provided by Douglas Duff. •The Fund has agreed a 5% deposit (£228,495) which will paid once all permissions are complete. This will then be held in escrow pending completion. •Should the Fund achieve the Red Book valuation for this site it would generate a profit of £653,317, which would equate to a 7p uplift on the Red Book NAV. •Again the Fund's unique financing model has enabled it to secure a very competitive purchase price in a beneficial partnership with the developer. Assuming that the above investments were included in the current Red Book basedvaluation, this would lift the NAV to 100.4p per share. The Chairman of the Fund, Graham Berry, said: "These are very attractive deals for the Fund. A strong relationship with anestablished and respected local builder, together with our beneficial financingmodel, have enabled the Fund to secure highly competitive prices in a strongarea of the market." List of Contacts Development Capital Management Roger Hornett Andy Gardiner 020 7355 7600 Numis Securities Adam Shapton Charles Farquhar 020 7776 1500 Buchanan Communications Charles Ryland Isabel Podda 020 7466 5000 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