Audioboom Grp. Regulatory News (BOOM)

11 May 2006 13:00

Off-Plan Fund Limited (The)11 May 2006 For Immediate Release 11 May 2006 The Off-plan Fund Limited Purchase of 51 apartments in Oldham Place, Liverpool The Board of The Off-plan Fund Limited (the "Fund"), which specialises inproviding forward finance to UK housebuilders, is pleased to announce thepurchase of 51 city centre apartments in Liverpool. •The Fund has agreed to purchase 51 new-build one and two bedroom apartments. •The site is situated approximately 5 minutes walk from Lime Street Station and 10 minutes from The Albert Dock and Royal Liver Building. •The total purchase price of the apartments is £6.6m (£192 per square foot) a 20% discount to the Red Book valuation of £8.25m (£238 per square foot). •The Fund is paying a 5% deposit, which will be held in escrow pending completion. •With city centre prices under pressure the Fund's unique financing model has enabled it to secure a very competitive purchase price in a mutually beneficial partnership with the developer. •The development is expected to commence in May 2006 with completion due in June 2007. •A highly regarded local agent has been jointly appointed with the developer and has begun pre-marketing the development, with sales expected to commence in the next 2 to 3 months. Commenting on the transaction, the Chairman of the Fund, Graham Berry said,"This is a very good deal for the Fund, situated in an attractive location, withcomparable properties in the vicinity achieving retail prices in the range of£240 to £245 per square foot. It epitomises the beneficial partnership which theFund seeks to achieve with both developers and their banks." List of Contacts Development Capital Management 020 7399 4270Roger HornettRupert Phillips Numis Securities 020 7776 1500Emma PrimaroloCharles Farquhar Buchanan Communications 020 7466 5000Charles RylandIsabel Podda 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. •The recent trend of upward market movement continued, with house prices rising for the sixth consecutive month. Demand for new build property has remained strong especially in the Southern regions. •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. The Manager is currently in negotiations with a number of developers regarding future investments and the Board hopes to make further announcements shortly. This information is provided by RNS The company news service from the London Stock Exchange