The First Closing Date was the 24th March 2010.
ALL SAINTS – INVESTMENTS
No 1
13th April 2010 – All Saints acquired a 20% interest in Whitbread’s Premier Inn hotel in central Norwich. The property provides 117 bedrooms and has just under another 30 years unexpired on the lease (break clause after 20 years) . The purchase price reflects a net initial yield of 6.5%. There will be a top up payment to the vendor to amend the yield to 6.25% if the vendor can amend the lease so that future rent reviews are geared to inflation.
No 2
19th May 2010 – All Saints has invested £630,000 as mezzanine finance towards the construction of a new 12,000 sq ft retail warehouse pre-let to Bennetts on an existing retail park in King’s Lynn. Another c£700,000 was invested by the partner owners of the existing investment. The mezzanine facility has the security of a second charge and is expected to be repaid once the new retail warehouse is completed by way of a re-financing or disposal of the property. The interest rate is 11% p.a. and there was a 1.5% arrangement fee.
23rd May 2011 – The original sum was re-paid with interest. A further loan of £650,000 was advanced on the same date as part of a wider re-financing with Barclays Bank with the same 11% interest rate. The combined borrowings of St Nicholas are only 62% loan to value.
No. 3
All Saints has acquired a c£2.5m trade counter / industrial investment in Epsom reflecting a net initial yield of 8.1%. The property typifies the All Saints 'lack of land' approach to stock selection given the scarcity value of modern properties such as this with grade A specification within the M25. The property is only 10 years old and benefits from a low site cover, higher than normal eaves height plus extensive fitting out by the tenant Wolseley. There is a rent review in February 2011 giving the Fund the chance to enhance the running yield and/or improve the capital value should the tenant agree to a lease extension.
