Last checked at 17 Feb 2012 07:00
Warner Estate Holdings PLC (the 'Group')
Interim Management Statement
Discussions with the Group's lenders, as announced in the Group's Half Year Report on 30 November 2011, continue. With respect to the Royal Bank of Scotland, those discussions are with Blackstone Real Estate Debt Advisers, which is managing the loan for an RBS affiliate, in which a Blackstone debt fund now holds a minority interest. There remains no certainty as to the terms of any agreement with the Group's lenders or whether it will be possible to reach an agreement. The Board continues to believe that any position reached with the lenders will deliver little or no value to existing shareholders, other than the opportunity to participate in an equity raise were that solution to be feasible and pursued.
The Group has continued to market certain properties in order to reduce total outstanding debt.
The Group disposed of 30/36 Market Place, Romford, 12/15 Above Bar, Southampton and Goldvale House, Woking for £4.7m (September 2011 book value £6.3m). The proceeds from the first two disposals were used to settle the break costs on two swaps relating to debt of £25m, one at 4.4675% to March 2015 and the other at 2.01% to December 2012. The net impact on NAV was a reduction of £1.4m.
The Group continues to perform well at an operational level, through protecting income and controlling costs. However, as previously announced, the outcome of the discussions with the Group's lenders will determine its future. -ends-
Date: 17th February 2012
Enquires:
Warner Estate Holdings PLC
Philip Warner, Chairman
Mark Keogh, Group Managing Director
Robert Game, Group Manager Director, Property
Tel: 0207 907 5100
Web: www.warnerestate.co.uk
City Profile
Jonathan Gillen
Simon Courtenay
Tel: 0207 448 3244