Victus European Student Accommodation Fund IC Limited (the Company or Fund )

Transcription

1 Victus European Student Accommodation Fund IC Limited (the Company or Fund ) Fund Update May 2017 Registered Number Registered Office: 11 New Street, St Peter Port, Guernsey, GY1 2PF Telephone: Facsimile: victus.gg@vistra.com

2 VICTUS EUROPEAN STUDENT ACCOMMODATION FUND FUND PROGRESS UPDATE May 2017 This is the latest in a series of updates with the purpose of informing investors of the progress of the sales process to date, and to provide an update on other material matters arising. The sale of the properties St James Point and St James Court, Newcastle, completed on 5 October 2016 for a gross sale price of 35m and the Board expects the property in Scotland, Keiller Court, to complete during May The Board have been working hard to ensure that the Fund is maximising its potential for investors, analysing all possible options to achieve this, and continues to actively market and seek offers for the remaining assets which are for sale. St James Point St James Court Keiller Court Income from all student properties has been maximised wherever possible. Current average occupancy level for the 2016/17 academic year across the portfolio is 98% and is yielding income of 4.8m from the UK properties and 2.5m from the European properties. Costs have been minimised wherever possible. This has largely been achieved by refinancing development loans into operational loans and also refinancing an exsisting operational loan to a more beneficial rate, both saving the Fund considerable amounts of interest. The average loan interest rate across the portfolio is 3.23%. These measures are having a significant improvement on the Fund s cashflow position. Having liaised with the appointed European sales agent on the marketing strategy of the European assets, the Board have decided to market the European assets as a combined package, as a single entry to the market, as it is believed this will achieve best value. The agent has finalised marketing literature and translated marketing brochures to take the European assets to market. Inital feedback from the agent is suggesting an encouraging level of interest in these assets and the Fund therefore still remains open to individual offers on these assets. All properties are continuing to be marketed to students for the 2017/18 academic year with a 3%+ rent price increase year on year and bookings are already at 66% occupancy across the assets in England, which is ahead of the same time last year. The Fund is in the process of having its audit completed and will be finalised as soon as practiable. 2 Call: +44 (0) enquiries@victus-capital.com

3 Portfolio for 2016/17 academic year Bed Numbers Number of assets 17% 25% 37% 8 Assets 25% 3 England 1 Scotland 2 Germany 2 France 41% 1501 Beds 33% 9% 13% Value (GBP) ENGLAND SCOTLAND 18% 64% 11% 7% 88 Million 55.7m England 5.8m Scotland 10.3m Germany 16.2m France 4.2m England 0.6m Scotland 1.2m Germany 1.3m France 489 GERMANY 262 FRANCE (Above figures use 0.8 exchange rate from Euros to GBP) Income (GBP) 17% 60% % Million 8% Occupancy 98% SCOTLAND 98% (Above figures use 0.8 exchange rate from Euros to GBP) 100% ENGLAND 97% Net Yields GERMANY FRANCE 5% 6% 6% GERMANY FRANCE UK 3

4 VICTUS EUROPEAN STUDENT ACCOMMODATION FUND Redemptions as a result of suspension All investor redemptions received prior to the 30 April 2016 have been settled in full with the exception of one investor with whom terms have been agreed for deferred payment. All deals were paid out and dealt in accordance with the terms set out in the Information Memorandum dated 17 January All redemptions for dealing day 3 May 2016 and 2 June 2016 remain unpaid until completion of the audit process in line with a condition imposed by the Guernsey regulator. Current creditor status The Fund s use of cash inflow since suspension during June to December 2016 has been assigned to creditors to the value of 7,070,265 covering such services as: Accountants, Legal, Property Advisory and Management, Asset Management, Debt Arrangement and Restructuring, Bank Fees, Building Contractors, Valuation Agents and Fund Administration. The Fund s use of cash inflow since suspension from January 2017 to date has been assigned to creditors to the value of 565,000 covering such services as: Accountants, Legal, Property Advisory and Management, Asset Management, Debt Arrangement and Restructuring, Bank Fees, Building Contractors, Valuation Agents and Fund Administration. Change in board members Following the resignation of Mr Gunther Gommes as Non-Executive Director of the VESAF Board, Ms Kerry-Anne Marais has replaced Mr Gommes on the Boards of the European SPV s, and in addition will take on the additional responsibilities and roles that previous Directors on the VESAF Board held. Any additional fees for these services will be within the prescribed limits on Directors fees as outlined in the Fund Information Memorandum dated 17 January The remaining Board are continuing to interview potential replacements in order to maintain continuity with the Board composition. Change in auditors As previously announced in the investor update on 16 March 2017 the Fund has changed auditors. The previous auditors, BDO Limited, gave notice of their resignation as auditor to VESAF on 10 August 2016 as required under the provisions of the Companies (Guernsey) Law, 2008 and further confirmed pursuant to section 273 of that law, that there were no circumstances in connection with their ceasing to hold office as auditor that they felt needed to be brought to the attention of the members or creditors of the Company. Saffrey Champness Chartered Accountants were appointed on 15 November 2016 as the Fund auditor. 4 Call: +44 (0) enquiries@victus-capital.com

5 Also as previously announced in the investor update on 16 March 2017, the Fund has received the resignation of the Administrator in Guernsey; Vistra Fund Services (Guernsey) Limited ( Vistra ); and in Luxembourg; Orangefield (Luxembourg) S.A ( Orangefield ). Vistra are required to remain in place until a suitable replacement is appointed and Orangefield is to be replaced by Capita Fiduciary S.A. Promoter Crosslane Fund Managers LLP Property Advisor Crosslane Property Advisor (Guernsey) Limited Property Manager Prime Student Living Limited Designated Manager, Administrator, Registrar and Secretary Vistra Fund Services (Guernsey) Limited Administrator France TMF Group Belgium TMF Group Luxembourg Capita Fiduciary S.A. (to be appointed) Auditors Saffery Champness Tax PricewaterhouseCoopers LLP Custodian and Principle Bankers Royal Bank of Canada (Channel Islands) Limited Legal Advisor Guernsey Appleby (Guernsey) LLP Legal Advisor UK Squire Patton Boggs (UK) LLP Valuation Agent Savills (UK) Limited FUTURE OUTLOOK As previously reported in the investor update on 16 March 2017, the Board has been reviewing the possibility of continuing the Fund, re-domiciling it in a different jurisdiction such as Luxembourg and appointing a third party alternative investment fund manager for AIFMD purposes. In this case the Fund would be re-opened for investment and plan to acquire additional assets. This proposal has the indicative support of a majority of investors in the Fund as reported to the Fund by Horizon Global Investors Limited, the major marketing agent of the Fund Promoter, and therefore the Fund has sought appropriate associated legal and tax advice on its suitability (the costs of which will be an expense of the Fund). Such a move would require shareholder consent, as well as consent of the GFSC, so further investigation is being concluded and a further update will be issued in the weeks ahead. 5

6 VICTUS EUROPEAN STUDENT ACCOMMODATION FUND Summary: The Board will continue to provide regular updates to the extent that it is able to do so and is fully committed in its endeavours to returning capital to investors at the earliest opportunity. All enquiries should be forwarded to the Company s secretary at the Company s registered office, which is located at the address below. VICTUS EUROPEAN STUDENT ACCOMMODATION FUND IC LIMITED (the Company or Fund ) (Registered Number 56015) Registered Office: 11 New Street, St Peter Port, Guernsey, GY1 2PF Telephone: Facsimile: victus.gg@vistra.com IMPORTANT DISCLAIMER Past performance is not a reliable indicator of future results. This publication is for private circulation and information purposes only and does not constitute a personal recommendation or investment advice or an offer to buy/sell or an invitation to buy/sell securities in any fund ( Fund ) referred to. The information and any opinions have been obtained from or are based on sources believed to be reliable but accuracy cannot be guaranteed. No responsibility can be accepted for any consequential loss arising from the use of this information. The information is expressed at its date and is issued only to and directed only at those individuals who are permitted to receive such information in accordance with Guernsey laws and regulations. In some countries the distribution of this publication may be restricted and it is your responsibility to find out what those restrictions are and observe them. Victus Capital cannot be liable for a breach of such restrictions. Please always refer to the Fund s prospectus. Vistra Guernsey as administrator is licensed by the Guernsey Financial Services Commission (the Commission ). The Commission has not reviewed this document and does not vouch for the financial soundness of the Fund or for the correctness of any of the statements made or opinions expressed with regard to it. This publication is directed solely at professional investors and not retail investors. Investors of the Fund are not eligible for the payment of any compensation under the Collective Investment Scheme (Compensation of Investors) Rules 1988 made under the Protection of Investors (Bailiwick of Guernsey) Law, 1987 as amended. The domicile of the Fund is Guernsey The Legal Representative of the Fund in Switzerland is: OpenFunds Investment Services AG, Seefeldstrasse 35, CH-8008 Zurich Publications in respect of the Shares are effected on the electronic platform The Paying Agent in Switzerland is Società Bancaria Ticinese SA, Piazza Collegiata 3, 6501 Bellinzona. Tel.: Fax: web: 6 Call: +44 (0) enquiries@victus-capital.com