Last checked at 23 Jan 2017 07:00
Frenkel Topping Group plc
("Frenkel Topping" or the "Company")
£3m Commercial Property SPV Loan Investment
Frenkel Topping Group plc (AIM: FEN) announces that it has provided a loan of £3m into FCFM Group Properties IV Ltd ("NewCo" and the "FT Loan"), a special purpose vehicle incorporated to acquire a c. 45,000 sqft freehold commercial property (the "Property") for £8m. The Property is leased to its current tenant until 2024 at a net initial yield of in excess of 10 per cent.
NewCo is owned 62.5% by FCFM Group Limited ("FCFM"), a shareholder of the Company of which Jason Granite, Executive Chairman and Chief Investment Officer of the Company, is a director and significant shareholder, and 37.5% by Frenkel Topping. FCFM will also be investing a £5m loan in NewCo alongside the Company ("FCFM Loan").
The FT Loan bears interest of 10% per annum payable monthly in arrears and the FCFM Loan will bear zero interest. The FT Loan and the FCFM Loan have a maturity of 3 years and are secured, pari passu, against the Property. Both the FT Loan and the FCFM Loan are repayable at any time at the option of NewCo without an early repayment fee.
As previously stated Frenkel Topping will have ownership of 37.5% of the voting shares of NewCo. NewCo has a right to buy these shares, at its discretion at any time, from Frenkel Topping for a total of £0.3m.
Jason Granite, Executive Chairman, commented:
"As previously stated, this transaction allows Frenkel Topping to generate an attractive return at relatively low risk on our substantial and growing cash balance. The transaction will have a positive impact on our 2017 earnings and has been entirely funded from surplus cash within the Company."
The investment by Frenkel Topping into NewCo including the FT Loan provided to NewCo is considered a related party transaction pursuant to AIM Rule 13 of the AIM Rules for Companies (the "Related Party Transaction"). The independent Directors of the Company (being Richard Fraser, Julie Dean and Mark Holt) consider, having consulted with finnCap Ltd, that the terms of the Related Party Transaction are fair and reasonable insofar as shareholders of the Company are concerned.
For further information:
Frenkel Topping Group plc Jason Granite, Executive Chairman | www.frenkeltopping.co.uk |
Richard Fraser, Chief Executive Officer | Tel: 0161 886 8000 |
Julie Dean, Chief Financial Officer | |
finnCap Ltd | Tel: 020 7220 0500 |
Adrian Hargrave / James Thompson / Alex Price | |
Tony Quirke | |
Walbrook PR Ltd | Tel: 020 7933 8780 or frenkeltopping@walbrookpr.com |
Paul McManus | Mob: 07980 541 893 |
Nick Rome | Mob: 07748 325 236 |
About Frenkel Topping: www.frenkeltopping.co.uk
Frenkel Topping provides specialist independent financial advice focussed on asset protection for clients. The specialist independent financial adviser has a market leading position providing advice and fund management services for personal injury trusts and clinical negligence awards and is well placed to provide services to a wider customer base.
The Company provides a range of wealth management services including bespoke investment portfolios, financial and tax planning. It is focused on increasing its assets under management by growing the number of fee earners who are qualified to provide benefits protection for a variety of needs as the Company adds to its personal injury and clinical negligence specialism.
It has a national presence with offices in Manchester, Birmingham, Bristol, Cardiff, London and Leeds and has relationships and infrastructure in place to further grow its reach and target markets.