Proposed Investment

18 Jan 2005 07:05

Blue Star Capital plc18 January 2005 For immediate release 18 January 2005 BLUE STAR CAPITAL PLC ("Blue Star") Proposed Investment in Black Raven Properties plc Blue Star Capital plc (AIM: BLU), the company created to provide seed capitalfor early stage companies, is pleased to announce it has led the formation andis planning to invest in Black Raven Properties plc, a company that todayrevealed plans to float on the Alternative Investment Market (AIM). Black Raven Properties is a property company that plans to purchase and developcommercial, residential and leisure sites through the formation of a jointventure with a construction firm and an experienced architectural practice. This is the second investment to be proposed, and second flotation candidate tobe generated, by Blue Star Capital since its flotation in October 2004. Itsfirst investment, India Outsourcing Services plc, successfully floated on AIM inDecember 2004. Blue Star intends to invest £275,000 in Black Raven Properties in return for 30per cent of Black Raven's shares. Nigel Robertson, Blue Star Capital's Chairman, commented: "This is Blue Star'ssecond investment, after India Outsourcing Services, and highlights thediversity of investment themes to which Blue Star intends to gain exposure. Webelieve that Black Raven Properties has the potential of bringing a highlypromising, asset-backed dimension to Blue Star's portfolio." For further information: Blue Star Capital plc Tel: 020 7070 7283Nigel Robertson, ChairmanHaresh Kanabar, Chief Executive Durlacher Limited Tel: 020 7459 3600Jonathan RetterKatherine Roe Buchanan Communications Tel: 020 7466 5000Mark CourtElly Williamson The full text of Black Raven Properties' press announcement follows: BLACK RAVEN PROPERTIES PLC ("Black Raven" or "the Company") Intention to Float on the Alternative Investment Market of the London Stock Exchange Black Raven Properties plc, a property company formed to purchase and developcommercial, residential and leisure sites, is pleased to announce its intentionto seek Admission for its shares to trade on the Alternative Investment Market(AIM) by way of a Placing. Blue Star Capital (AIM: BLU), the recently floated investment company, has beeninstrumental in the formation of Black Raven and proposes to make a significantinvestment in the Placing. Highlights • Black Raven has been formed to seek, purchase and develop commercial, residential and leisure sites with the objective of generating the majority of its profits through the sale of long leaseholds of developed units. The Company's strategy is to sell properties following the completion of the construction and site development phase rather than to hold a large portfolio of completed developments. • It is the Company's intention to establish a joint venture with a construction firm and an experienced architectural practice. It is intended that the joint venture will provide the Company with expertise and resources in addition to site acquisition opportunities. • Black Raven's Board currently comprises Nigel Robertson, the Chairman of Blue Star Capital, as Non-Executive Chairman and Haresh Kanabar, the Chief Executive of Blue Star Capital, as Business Development Director. Further Board members are expected to be appointed at the time the first site is acquired. • Black Raven is raising gross proceeds of £1 million by way of a Placing. • The funds raised by the Placing will be used for carrying out due diligence, planning evaluations and marketing appraisals on potential site acquisitions and for the Company's initial working capital requirements. • On Admission, the Company will have no investments or trading businesses although a number of potential site acquisitions have been identified. • It is expected that trading in Black Raven shares will commence on AIM in early February. • Arden Partners is the Company's nominated adviser and broker. On the plans for the flotation, Nigel Robertson, Black Raven Properties'Chairman, said: "The property sector offers considerable opportunities that wewill be in a strong position to exploit through joining the AlternativeInvestment Market and assembling a team of joint venture partners." For further information: Black Raven Properties plc Tel: 020 7070 7283Haresh Kanabar Arden Partners Tel: 020 7398 1635Paul Davies Buchanan Communications Tel: 020 7466 5000Mark Court Elly Williamson This information is provided by RNS The company news service from the London Stock Exchange