Last checked at 10 Jul 2017 07:00
10 July 2017
K&C REIT plc
("K&C" or the "Company")
Issue of Loan Notes
K&C REIT plc is pleased to announce that it has issued £1.35 million nominal value loan notes ("Loan Notes"). The Loan Notes attract interest at a rate of 6 per cent per annum, payable quarterly, and will be redeemed on 30 June 2020 ("Redemption Date").
£700,000 nominal value of the Loan Notes may be converted into new ordinary shares of 1p each in the Company ("Ordinary Shares") at any time prior to the Redemption Date at the sole discretion of the holders. Any conversion will be at either 12 pence per share or, in certain circumstances, the price at which the Company places further new Ordinary Shares with investors prior to the Redemption Date.
The majority of the proceeds of the Loan Note issue will be used to acquire three leases over apartments within one of the group's freehold properties. These apartments will be added to K&C's pool of rental property. The balance of the proceeds will be used for general working capital purposes.
Venaglass Limited, which currently holds 19.0 per cent. of the issued share capital of the Company, is subscribing for £400,000 Loan Notes. Tim James, Property Director, is subscribing for, in aggregate, £100,000 Loan Notes and Kimono Investment Holdings Limited, a trust established for the benefit of the adult children of Oliver Vaughan, a non-executive director of the Company, is subscribing for £100,000 Loan Notes. These subscriptions are classified as related-party transactions under the AIM Rules for Companies.
The directors of K&C, other than Tim James and Oliver Vaughan, consider, having consulted with the Company's nominated adviser Arden Partners, that the terms of the Loan Note issue are fair and reasonable insofar as shareholders are concerned.
Contacts:
K&C REIT plcDominic White, Chief executive Tim James, Property director
Arden Partners plc William Vandyk Steve Douglas
| info@kandc-reit.co.uk+44 20 3793 5236+44 7768 833 029
+44 20 7614 5917 |
Yellow Jersey PRCharles Goodwin
|
+44 7747 788 221
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Notes to Editors:
K&C's objective is to build a substantial residential property portfolio that generates secure income flow for shareholders through the acquisition of SPVs (Special Purpose Vehicles) with inherent historical capital gains. The Directors intend that the group will acquire, develop and manage residential property assets primarily within the M25 as well as in other key residential areas in the UK.