17 Oct 2019 07:00
17 October 2019
VORDERE PLC
("Vordere" or the "Company)
Early payment of loan interest
The Company is pleased to announce it has received an early payment of approximately £20,000 in pro-rata interest from JV11 Eiendom AS (the "Borrower") in connection with the following loan.
Vordere Capital Sarl, a wholly owned subsidiary of Vordere, and the Borrower entered into a facility agreement dated 15 November 2017.
The Borrower is a special purpose vehicle which has been established for the sole purpose of acquiring, holding, managing, developing and disposing of a freehold property located in Sandvika, Norway (the "Property").
Pursuant to the facility agreement, a loan in the amount of NOK 9,500,000 was drawn down on 16 November 2017 (the "Loan"). The interest rate on the Loan is 7% per annum and the repayment date is 16 November 2022. The Loan is secured by a first ranking priority mortgage over the Property (the "Security"). The Security has been granted by the Borrower in favour of Vordere Capital Sarl and registered in the Norwegian land registry.
The Property generates annual rental income equivalent to approx. 10% of the principal amount of the Loan. The appraised market value of the Property was NOK 16,400,000 as at 31 March 2018 and 31 March 2019, as confirmed by independent valuation reports provided in relation to the Company's annual financial statements. This represents a loan to value ratio of approximately 58%.
After the early voluntary full and final prepayment of the loan by MV13 Eiendom AS, as announced by the Company on 30 September 2019, the Loan to the Borrower is the only remaining secured loan granted by the Company. The Company is in discussions with the Borrower regarding a potential early repayment of the entire loan and further updates will be provided as appropriate.
Commenting Nicholas Hofgren, Chief Executive of Vordere, said: "We are very pleased to have received this further payment following on from the early repayment of our other Norwegian loan that we announced on 30 September 2019.
"As we outlined in our trading statement on 7 October 2019 the Company has made significant progress in 2019, particularly as a result of the acquisitions announced on 4 July 2019. We are continuing to execute according to our strategy and are confident that we can appropriately utilise our resources to build shareholder value and expand the assets of the business to in excess of £100 million before the end of 2019. With no debt and low administration costs, I believe we are very well positioned and I look forward to making further announcements concerning our progress in due course.
"I also look forward to meeting those shareholders who are able to attend our General Meeting on 24 October and I would urge those shareholders who have not already done so to read the circular convening the General Meeting and to vote against the resolutions proposed."
Vordere PLC
Nicholas Hofgren, Chief Executive Officer Claire Jackson, Company Secretary | via IFC +44 (0) 117 918 1314 |
Greenwoods GRM (Legal Adviser)
Alper Deniz | +44 (0) 207 504 1157 |
IFC Advisory (Financial PR and IR)
Tim Metcalfe Graham Herring Zach Cohen | +44 (0) 203 934 6630 |
About Vordere
The Company is a property investment and development company currently primarily focused on the German residential market. Our business model is to apply private equity techniques to generate medium to long term counter-cyclical gains for shareholders. In addition to the investments in Germany, the Board continues to explore opportunities to grow, in particular, in markets with high growth prospects in order to balance the portfolio and provide greater opportunities for growth. We are in discussions with several vendors to achieve this goal in Europe and the Americas.
Further information may be found at: http://vordere.com
LEI number of Vordere PLC: 213800VALWEYWTLOX423