Urban Exposure puts brakes on all new lending

Real estate financier Urban Exposure is ceasing all new lending “for the foreseeable future” owing to the market uncertainty created by the coronavirus pandemic. The AIM-listed company, which has been undergoing a strategic review following the collapse of a deal to sell its loan book, said it will instead focus on managing its existing loan portfolio to maturity. Urban Exposure said it is also exploring “numerous possibilities” regarding a potential sale of the loan book, “with a view to determining whether a sale of all or some of the loan book may be more attractive to shareholders than holding those loans to maturity”. The company has also announced that it is launching an inquiry into a £1.2m loan made by one of its subsidiaries to Urban Exposure Philanthropy, a charitable organisation which formed a core part of the company’s charitable endeavours, run by chief executive Randeesh Sandhu and the COO, Daljit Sandhu and a variety of staff from Urban Exposure on a pro-bono basis. The loan was made to finance the refurbishment of a nursery school in south east London, for under privileged children. Liberum Capital, the company’s nominated adviser, says it was not consulted about the loan and that shareholder approval should have been sought. Urban Exposure said it “is not currently expecting to take any immediate action to remedy this matter” but that its board has decided an inquiry should be held by a third party. To send feedback, e-mail tim.burke@egi.co.uk or tweet @_tim_burke or @estatesgazette