Update January 2017
January was a productive monthly for the team at Elaine Securities Plc (“Elaine”) with some interesting deals we are investigating and hoping to secure in February.
Elaine currently has seven investments.
- Elaine has a participation of £200,000 in a secured 8-month bridge facility of £5m, to complete the acquisition of a commercial property in Liverpool. A first ranking legal charge on the property (which is valued at £9.5m) along with additional security from two other properties has been obtained as security for the loan.
- A £900k loan to, and equity holding in an SPV that purchased a private aircraft with an existing lease agreement. Elaine holds one-third of the loan and the equity in the borrower SPV. The lessee was due to commence the lease in early January 2017, however as anticipated, the lessee did not commence, and the borrower SPV has taken ownership of the aircraft. The SPV now intends to sell the aircraft and is actively marketing the sale. A further update on the status of the loan will be provided in the next announcement.
- A 19-month loan for £970,000 (initially) as participation in a syndicated facility (of a total loan of £3,129,000), which was used to acquire a commercial property near Heathrow. Under the Governments’ Permitted Development Rights, the borrower intends to convert the existing office space into residential apartments. A first ranking charge on the property and a debenture over the corporate borrower has been secured. The senior tranche portion of the loan was sold during November representing a repayment of over £326,000. The borrower is now in the final stages of documentation with a new lender to refinance the bridge loan so we expect to receive full repayment shortly, releasing over £600k that can be deployed in future investments
- A loan in the amount of £120k as participating in a syndicated facility (of a total loan of £1,282,050) to refinance an existing loan and to fund a redevelopment. The loan is to be secured against a 15th Century Grade II listed building in Cobham, Surrey. The building is to be used as a hotel / restaurant.
- A term loan facility provided to a corporate borrower for periodic draw down to fund the provision of motor stocking facilities to its motor vehicle traders. We have agreed to wind down this loan and accordingly a repayment schedule has been agreed, which envisages full repayment by late 2017.
- A one-year term loan facility to a corporate borrower due for final repayment in February 2017. This loan is secured against a potential development site in Purley, London. It is the intention of the borrower that the site will be marketed upon the granting of planning permission with the loan repayable on the earlier of the sale date or 25th February 2017.
- A loan facility to a corporate borrower to fund the acquisition of land at a development in Leeds. The purchase of an extra piece of land, located adjacent to the site has been secured expanding the overall scale of the development. The proposed scheme is to build eight detached houses (each with 4-6 bedrooms) and to refurbish one existing detached house. The loan repayment is upon sale of the first five units, which is estimated between July 2017 and November 2017.
The team is currently exploring the following opportunities, among others:
- An 18-month loan facility of £800,000 in being negotiated to be used to assist in the purchase of an Aston Martin DB4 GT, secured against the contract for the vehicle that is to be built and valued at £1.5m. This loan may be funded through syndication with other lenders with a percentage to be determined.
- A participation in a 12 month loan of £1m, to be used as partial funding of the acquisition of development land in Scotland with full granted panning permission to be used as a leisure retreat.
Elaine currently has just under £200,000 in cash to participate in these investments, although we expect funds to be returned shortly from the repayment of the Heathrow loan.
We will update you again in the near future regarding these loans.
Elaine Securities Plc