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8 Jan 2009 14:53
Close High Income Properties PLC (the "Company")
Trading Update
The Board of Close High Income Properties PLC advises that, following receipt of the 31 December 2008 independent valuation from DTZ Debenham Tie Leung, which shows a fall in the value of the Ordinary and the "D" Ordinary Share property portfolio values, the Company may now be in breach of its loan to value (LTV) covenants with its lending banks. The following table summarises the current position:
|
Ordinary Shares |
Current LTV |
LTV Covenant Level |
Lender |
|
CHIP (One) Ltd |
67.7% |
60% |
Bank of Scotland |
|
CHIP (Two) Ltd |
66.2% |
60% |
Nationwide Building Society |
|
CHIP (Three) Ltd |
67.0% |
60% |
Bank of Scotland |
|
CHIP (Four) Ltd |
65.1% |
60% |
Bank of Scotland |
|
CHIP (Five) Ltd |
66.5% |
60% |
Bank of Scotland |
|
"D" Ordinary Shares |
|||
|
CHIP (Six) Ltd |
79.6% |
65% |
Nationwide Building Society |
The Property Investment Advisor, Close Investments Limited, is continuing in its discussions with the Company's lending banks to review the financial covenants currently in place with the aim of providing the Company with greater financial flexibility. The Company intends appointing a specialist debt advisor to assist it on these negotiations.
As a result in the fall in value of the Ordinary Share property portfolio, the Directors do not recommend a payment of a dividend to Ordinary Shareholders at this time in order to preserve cash to sustain liquidity.
The Company continues to be able to fully service its lending commitments and is not in breach of any other covenants relating to its facilities. Further details of the property valuations will be given when the Company issues its monthly net asset value (NAV) statement on or before 15 January 2009.
For further information please contact:
Peter Roscrow
Close Investments Limited
020 7426 4174
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