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22 May 2014 07:00
J.P. Morgan Private Equity Limited
Carinthia House
9-12 The Grange
St Peter Port
Guernsey GY1 4BF
www.jpelonline.com
PARTIAL EXIT - Deutsche Annington Immobilien Group ("DAIG")
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· JPEL PARTICIPATED ALONGSIDE OTHER INVESTORS IN A PLACING AT 19.50 EUROS PER SHARE
· RECEIVED APPROXIMATELY EURO 11.8 million in Cash proceeds or 25% of JPEL's POSITION IN DAIG
· RECEIVED an IN-KIND DISTRIBUTION of DAIG ordinary shares REMAINING 75% of JPEL's POSITION IN DAIG
· BASED ON A 19.50 EURO PER SHARE VALUE, JPEL's INVESTMENT IN TFDA HAS GENERATED APPROXIMATELY 2.76x JPEL's COST AND an irr of 25.6%
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GUERNSEY, 22 MAY 2014
J.P. Morgan Private Equity Limited ("JPEL" or the "Company") is pleased to announce that, on 20 May 2014, the Company, through its investment in Terra Firma Deutsche Annington ("TFDA") participated alongside Terra Firma and several other investors in a 30 million share placing of Deutsche Annington Immobilien Group ("DAIG") at 19.50 Euros per share.
In connection with the placing, JPEL received:
· Cash proceeds of approximately Euro 11.8 million, representing 25% of JPEL's position in DAIG; and
· In-kind distribution of DAIG shares representing the remaining 75% of JPEL's position.
The distribution is net of all carried interest. JPEL will not pay any carried interest or management fees on its direct investment in DAIG going forward.
DAIG is JPEL's largest underlying company investment as at 31 March 2014.
JPEL initially gained exposure to DAIG in 2006 through a EUR 1.4 million investment in TFDA. In 2008, JPEL purchased a larger investment in the same co-investment vehicle at a substantial discount to the prevailing NAV at that time. Based on a 19.50 Euro per share value, JPEL's investment in TFDA has generated approximately 2.76x JPEL's cost and a 25.6% IRR.
JPEL's investment cost in DAIG is estimated to be below 8 Euros per share.
DAIG is Germany's largest residential real estate company with approximately 174,300 residential units of its own and 26,800 apartments managed for other owners as well as approximately 3,000 employees.
Pro forma for this partial realization, based on the most recent available balance sheet data for JPEL at 31 March 2014, JPEL would have net leverage* drawn under its credit facility of approximately $2.1 million. This is after JPEL invested approximately $50 million in 4 investments. Including the 2015 and 2017 ZDPs, JPEL's current pro forma net debt (including ZDPs)** is approximately 23% of total assets.
* Net leverage refers to total debt drawn under JPEL's credit facility less cash.* Net debt is defined as total debt drawn under JPEL's credit facility less cash plus accreted value of the 2015 and 2017 ZDP Shares.
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For further information please contact:
J.P. Morgan Private Equity Limited
Greg Getschow
+1 212 648 1150
Gregory.Getschow@jpmorgan.com
Rosemary DeRise / Samantha Ladd
+1 212 648 2980 / +1 212 648 2982
Rosemary.DeRise@jpmorgan.com / Samantha.Ladd@jpmorgan.com
About J.P. Morgan Private Equity Limited
J.P. Morgan Private Equity Limited ("JPEL" or the "Company") is a Guernsey registered and incorporated, London Stock Exchange-listed, closed-ended investment company (LSE: JPEL, JPZZ, JPSZ). The Company's capital structure consists of three classes of shares: US$ Equity Shares and two classes of Zero Dividend Preference Shares due 2015 and 2017, respectively.
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