14 Jun 2011 07:00
14 June 2011
Duet Real Estate Finance Limited ("DREF" or the "Company")
DREF successfully funds two additional investments
DREF is pleased to announce further progress in deploying capital through the growth of the investment portfolio of the Duet European Real Estate Debt Fund (the "Master Fund").
A further two transactions have been closed over the last month, for a total investment value of approximately £33m.
The first transaction was a financing for a portfolio of French offices where Duet Private Equity Limited (the "Investment Adviser") has backed a seasoned operator with a long successful track record. The second transaction provides finance for a portfolio of UK healthcare facilities, where the tenants are operating companies backed by stable government backed cash flows.
Returns across both investments are in line with the target return with the combined IRR expected to be in excess of 17%, an average cash coupon of 12.7% and an average loan to value ratio of 65%.
The Master Fund is now over 50% invested at its current size (£176.9m). Following the completion of these two transactions the invested portfolio has an average cash coupon of 10% and expected gross IRR of more than 15%.
The Company expects to announce its NAV for the quarter end June 2011 in late July 2011 along with its maiden quarterly dividend. The dividend is expected to represent an annualised yield of at least 3-4 per cent on the initial public offering ("IPO") issue price as expected at the time of the IPO in March 2011 and outlined in the Company's prospectus.
Due to the continuation of the tight lending market for commercial property, the Investment Adviser continues to evaluate many different investment opportunities, and sees attractive opportunities to continue to deploy capital in to debt backed by high quality European commercial property. The Active pipeline of deals stands at £160m across 10 different transactions.
Enquiries:
Duet Private Equity Limited +44(0)20 7290 9778
Dale Lattanzio
Cyrus Korat