ICG-Longbow SSUP warns of ‘activity drop-off’
ICG-Longbow Senior Secured UK Property Debt Investments has warned of a potential drop-off in activity in the UK property market before the end of the year in its half-year results.
Despite plans to expand the company and its lending activity, ICG-Longbow SSUP said there was a risk that leasing and investment transactional activity could fall as occupiers and investors awaited the outcome of Brexit negotiations.
However, the lender intends to stay active, with a pipeline of new investments valued at in excess of £100m and plans to approach shareholders for new share issuance.
ICG-Longbow Senior Secured UK Property Debt Investments has warned of a potential drop-off in activity in the UK property market before the end of the year in its half-year results.
Despite plans to expand the company and its lending activity, ICG-Longbow SSUP said there was a risk that leasing and investment transactional activity could fall as occupiers and investors awaited the outcome of Brexit negotiations.
However, the lender intends to stay active, with a pipeline of new investments valued at in excess of £100m and plans to approach shareholders for new share issuance.
ICG-Longbow SSUP is a listed UK debt provider advised by ICG-Longbow.
New facility
ICG-Longbow SSUP recently established a £25m working capital facility with Oak North Bank to enable new investments in advance of redemptions.
The debt provider said it would give existing borrowers quantum increases and term extensions, which would help avoid a large concentration of loan repayments and allow the firm to focus on growth.
Its NAV grew by 2.9% in the first six months of the year to £121.36m. Total investment income was up from £3.42m in July 2017 to £3.6m.
Prepayment fees fell from £0.99m to £0.39m, which it said was a reflection of the lower volume of early loan repayments and the maturing nature of its existing investment portfolio.
Portfolio composition
In total, ICG-Longbow SSUP’s portfolio consisted of 10 loans with an aggregate principal balance of £112.2m – up slightly from 10 loans and a principal balance of £111.2m at the start of the year.
Jack Perry, chairman of ICG-Longbow SSUP, said that despite political uncertainty, the economy and most property submarkets – outside of retail – had remained “relatively robust” and “steady”.
However, he added: “In the second half of the year, there remains the potential for a drop-off in leasing and investment transactional activity as occupiers and investors await the outcome of Brexit negotiations.”
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