3 Nov 2011 07:00
3 November 2011
Duet Real Estate Finance Limited
("DREF" or the "Company")
NAV and Dividend for the quarter to 30 September 2011
and Interim Management Statement
This interim management statement covers the period from 30 June 2011 to 30 September 2011 together with relevant information up to the date of publication of this statement.
NAV and Dividend
The board of DREF is pleased to announce a dividend of 1.0 pence per Ordinary Share for the quarter to 30 September 2011, payable on 2 December 2011 to those Shareholders on the register on 11 November 2011.
In addition, the Company is able to report an unaudited NAV as at 30 September 2011 of 98.1 pence per Ordinary Share.
Material Events and Transactions
On 16 August 2011, the Company announced its successful fundraising of £26 million through its placing of new ordinary shares ("New Ordinary Shares"), at an issue price of 100.25 pence per New Ordinary Share. The Company committed to invest substantially all of the capital raised to the European Real Estate Debt Fund LP (the "Master Fund"), which achieved its target size of over £300 million subsequent to DREF's commitment, and the Master Fund is now closed to new capital.
During the period, the Master Fund made three further investments. In September the Master Fund completed one of the European market's largest mezzanine debt financings of the year as part of a total £80m mezzanine financing arranged by Duet Private Equity Limited for Blackstone's acquisition of the Mint Hotel portfolio. The Master Fund also made two further follow-on investments, with an additional purchase of UK Health Care Commercial Mortgage-Backed Securities, and a €10 million increase in the facility to the French Portfolio. As at the date of this announcement, the Master Fund is 47% invested.
The Master Fund and its associated entities have entered into a subscription facility, which requires Limited Partner consent. The Company has approved the facility and the Master Fund expects the balance of Limited Partners that have not already approved it to do so shortly. The security to be provided to the facility provider will take the form of a charge over the uncalled commitments of the Limited Partners in the Master Fund. The purpose of the facility will be to provide the Master Fund with more flexibility in managing capital calls. In particular, it will allow a more efficient closing process for investments made by the Fund.
The Company received distributions from the Master Fund of £0.9 million during the period and announced its maiden quarterly dividend of 1.0 pence per Ordinary Share on 26 July 2011, resulting in a cash outflow of £0.5 million.
Financial Position
The Company had invested £36.4 million of capital into the Master Fund as at 30 September 2011 and had current assets of £39.0 million of which £38.9 million was committed to the Master Fund.
General Financial Information
30 Sept 2011 | 30 June 2011 | |
Share Price | 99.25 pence | 101.25 pence |
NAV | 98.1 pence | 98.6 pence |
Premium to NAV | 1.2% | 2.8% |
Dividend per share* | 1.0 pence | 1.0 pence |
* Dividends paid relating to the quarters ending 30th June 2011 and 30th September 2011
For further information, please contact:
Duet Private Equity Limited Dale Lattanzio Cyrus Korat
| +44 (0)20 7290 9778 |