ICG-Longbow to issue shares

ICG-Longbow is to change its investment strategy and start a placing programme for 40m shares as the majority of its loans near their end. The firm said there was an opportunity to expand the size of the company and would issue up to 40m shares over 12 months to fund new investments. ICG-Longbow also said shareholders “would welcome a more widely drafted and flexible investment policy” and would target a wider commercial real estate debt market. One of the changes is an increase from 65% to 85% on the maximum LTVs in the loans it issues. However, it added that the value of loans with an LTV above 80% could not be greater than 20% of the company’s gross asset value. While the existing investment policy does not outline investment into alternatives, the proposed policy said its maximum exposure to alternative property sectors will be 25% of its GAV. Despite expanding into new markets, ICG-Longbow said it would maintain its policy of delivering dividends of 6% pa, and would continue its “cautious lending philosophy”. It also said its plans to continue its existence would be subject to continuation resolutions that would have to be passed every five years. An extraordinary general meeting will be held on 1 March to approve the proposals. • To send feedback, e-mail karl.tomusk@estatesgazette.com or tweet @ktomusk or @estatesgazette