JZ CAPITAL PARTNERS
LIMITED
(a closed-end collective investment scheme incorporated with
limited liability under the laws of Guernsey with registered number
48761)
LEI: 549300TZCK08Q16HHU44
Real Estate
Valuations
THIS ANNOUNCEMENT CONTAINS INSIDE
INFORMATION FOR THE PURPOSES OF THE MARKET ABUSE REGULATION (EU)
NO. 596/2014.
10 February 2020
JZ Capital Partners Limited ("JZCP" or the "Company"), the
London listed fund that invests in
US and European micro-cap companies and US real estate, announces
that it has begun receiving preliminary appraisals for its real
estate portfolio assets for the valuation period as of February 29, 2020. In line with the Company’s
previously announced expectation in its interim results, released
on November 27, 2019, certain newly
received appraisals represent materially lower valuations.
Although the Company has not received all of its annual
appraisals as of this announcement, the Fulton Mall and Design
District appraisals indicate that JZCP will likely experience a
write-down of its real estate net asset value of approximately
$102 million from its December 31, 2019 net asset value. Including
three other newly received appraisals, which in total represent an
additional approximately $6.0 million
write-down, the Company expects to take a provision of
approximately $108 million in its
January 31, 2019 net asset value,
subject to receiving additional appraisals in the coming two weeks.
This provision is in addition to the write-downs previously taken
and announced of $62 and $18 million regarding the Company’s investments
in Design District and Greenpoint, respectively. As a consequence
of these newly received appraisals, the Company’s investments in
Fulton Mall and Design District will be written down to nil.
As stated above, the valuation process as of February 29, 2020 is unfinished, and the Company
has yet to receive several appraisals from properties which
represent a significant portion of JZCP’s net asset value. The
Company will issue further reports regarding the updated valuations
of these properties as necessary.
As previously announced, the Investment Adviser continues to
look to realise value from the investment portfolio in order to pay
down the Company’s debt, in the first order, and make capital
distributions to shareholders.
Enquiries:
Company website:
www.jzcp.com
This announcement is issued on behalf of the Company by
Sam Walden of Northern Trust
International Fund Administration Services (Guernsey) Limited
Email: jzcp@ntrs.com