News Column

Real Estate Credit Investment To Pay EUR7.9 Million To Cell Holders

July 9, 2014

Anthony Tshibangu

LONDON (Alliance News) - Real Estate Credit Investment PCC Ltd Wednesday said it plans to make a EUR7.9 million payment to cell shareholders by way of a compulsory redemption of cell shares.

The company said that around 73.7% of the cell's issued share capital will be redeemed at the close of business on July 25.

The payment is equivalent to EUR0.51 per each of the 15.4 million current outstanding cell shares.

The redemption of the cell shares follows Real Estate Credit Investments sale of its Magellan asset for EUR7.4 million in June, at which time the closed-end protected cell company said it would make a capital return to shareholders.

"The amount to be applied to the partial redemption of the cell shares comprises the monies from the realisation of the cell's assets to be received up to and including the redemption date, less the costs and expenses of the redemption," the company said Wednesday.

In a note following the announcement, Liberum Capital said it calculates the net asset value of the remainder of the cell is EUR2.8 million. "We would expect the remaining investments to be sold shortly with proceeds returned to shareholders in due course," the investment bank said. The cell "now trades on a 9.1% premium to NAV, and we would expect the shares to move towards par in the near term."

Real Estate Credit Investment shares were quoted down 0.6% at 165.75 pence Wednesday morning.

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Source: Alliance News

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