TAP.L Regulatory News (TAP)

3 Jun 2009 10:31



3 June 2009

THE ADVANTAGE PROPERTY INCOME TRUST LIMITED

("TAP" or "The Company")

AGM Statement

At the Company's AGM to be held at 10.30am today, the chairman of the meeting will make the following statement:

Since the last AGM the Company has completed 50 property transactions, 28 lease renewals and rent reviews, 14 lettings and eight sales. These transactions have resulted in excess of £2 million of annual rent being secured, £0.4 million of additional annual rent achieved through lettings and eight completed sales realising over £8 million. 

Turning to the future prospects, the UK property market has seen, in the last quarter, significant signs of improvement especially in the sale of prime, small lot size, long let, properties. At a recent Allsops auction 28 lots (out of 91 offered) achieved better than 6% yield. Demand continues to out-strip supply for this type of stock.

The analysis of bids received in respect of the marketing of part of the TAP Halfords portfolio is a good example of the interest now increasing beyond the prime part of the market. TAP had 12 offers from parties in respect of the three assets within the TAP Halfords portfolio which, whilst well let, are not considered prime.

Most recently, TAP has completed on the sale of The Orbit Centre Swindon (a small unit industrial estate) at a figure of 1.4% below the March valuation figure and at Macintosh Road in Livingston, we have completed the sale of a vacant unit to the adjoining occupier at just below the March valuation.

We are in the process of completing a number of exciting initiatives in respect of capital and income projects and expect to be able to report to shareholders on these shortly.

The Board suspended the dividend in May to help ensure compliance with our banking covenants at the end of June 2009 valuation but the Board can confirm that we have additional sales underway and that these are expected to provide additional cash that can be utilised as appropriate.

Following the announcement made by The Conygar Investment Company on 29 May 2009 regarding a conditional proposed offer for TAP, neither Conygar nor its advisers have initiated any contact with TAP or its advisers. The unsolicited and unwelcome approach undervalues the Company. The unaudited net asset value per share of TAP at 31 March 2009 as announced on 30 April 2009 was 46.3 pence and whilst the Board believes that asset values have fallen further since that date, the Board also believes that asset values are now stabilising and that TAP's current net asset value per share remains substantially above the value represented by the conditional proposed offer. The Board therefore considers the conditional proposed terms set out by Conygar in its announcement to be wholly inadequate.

For further information, please visit www.tapincome.com or contact:

Dealing Disclosure Requirements 

Under the provisions of Rule 8.3 of the Takeover Code (the "Code"), if any person is, or becomes, "interested" (directly or indirectly) in 1% or more of any class of "relevant securities" of TAP or Conygar, all "dealings" in any "relevant securities" of that company (including by means of an option in respect of, or a derivative referenced to, any such "relevant securities") must be publicly disclosed by no later than 3.30 pm (London time) on the London business day following the date of the relevant transaction. This requirement will continue until the date on which the offer becomes, or is declared, unconditional as to acceptances, lapses or is otherwise withdrawn or on which the "offer period" otherwise ends. If two or more persons act together pursuant to an agreement or understanding, whether formal or informal, to acquire an "interest" in "relevant securities" of TAP or Conygar, they will be deemed to be a single person for the purpose of Rule 8.3. 

Under the provisions of Rule 8.1 of the Code, all "dealings" in "relevant securities" of TAP or Conygar by the offeror or the offeree company, or by any of their respective "associates", must be disclosed by no later than 12.00 noon (London time) on the London business day following the date of the relevant transaction. 

A disclosure table, giving details of the companies in whose "relevant securities" "dealings" should be disclosed, and the number of such securities in issue, can be found on the Takeover Panel's website at www.thetakeoverpanel.org.uk. 

"Interests in securities" arise, in summary, when a person has long economic exposure, whether conditional or absolute, to changes in the price of securities. In particular, a person will be treated as having an "interest" by virtue of the ownership or control of securities, or by virtue of any option in respect of, or derivative referenced to, securities. 

Terms in quotation marks are defined in the Code, which can also be found on the Panel's website. If you are in any doubt as to whether or not you are required to disclose a "dealing" under Rule 8, you should consult the Panel.