Shore Capital Group Limited Supported living joint venture (0614C)
April 10 2017 - 6:10AM
UK Regulatory
TIDMSGR
RNS Number : 0614C
Shore Capital Group Limited
10 April 2017
Shore Capital Group Limited
("Shore Capital" or the "Group")
Supported living joint venture
Shore Capital, the independent investment group specialising in
capital markets, principal finance and asset management, announces
a new joint venture focused on real estate opportunities in the
supported living sector, called Puma Social Care Investments Ltd
("PSCI" or the "joint venture").
PCSI has secured equity commitments totalling GBP21 million, to
be contributed equally from the Group alongside two family offices
in the United States. Shore Capital's commitment of GBP7 million
will be partly provided through the injection of GBP5.8 million of
supported living assets already held on the Group's balance sheet.
The balance of the consideration will be funded from group
reserves.
PSCI has been established to acquire newly built or converted
assets which provide residential accommodation in the form of
self-contained apartments for individuals with learning
disabilities, enabling them to live independently with the support
of on-site care. Accommodation of this nature allows local
authorities in the United Kingdom to meet their statutory
obligations with regard to care and housing provision, while also
addressing the UK government's stated desire to locate individuals
needing care within their local community. Each site will typically
have between 10 and 20 units.
The assets targeted will benefit from long-term, typically 25 or
30 year, inflation-linked leases to a variety of housing
associations. Rental income paid from housing associations will be
funded from Housing Benefit payments from central government.
PSCI intends to acquire an identified initial pipeline of assets
with an aggregate value of GBP50 million. There is a substantial
opportunity to grow the asset base further, once the first tranche
of purchases have been completed.
In executing PSCI's strategy, the Group will be providing
advisory services to the joint venture, through its majority-owned
subsidiary Puma Investment Management Ltd ("PIML"). The Group has
extensive experience in the real estate sector gained through many
years of advising property investment vehicles. PIML will be
applying the expertise it has developed in the supported living
sector in recent years, through its management and advisory
services to funds and companies that have provided funding for
supported living developments.
As Investment Advisor to the joint venture, PIML will charge an
annual advisory fee equal to 0.85% of the gross value of properties
held by the joint venture, as well as an acquisition fee on each
property purchase of up to 1.0% of the purchase price.
Commenting on the joint venture, David Kaye, CEO of Asset
Management, said:
"This new joint venture continues the expansion of our asset
management activities and will deploy the Group's considerable real
estate expertise into a sector where innovative new solutions are
much needed. By committing capital to supported living assets, we
will enable housing associations in the UK to lease high quality
facilities and provide important local services."
- Ends -
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
Enquiries:
Shore Capital
David Kaye, CEO of Asset +44 (0) 20 7468
Management 7911
Grant Thornton UK LLP
(Nominated Adviser)
Philip Secrett
Jamie Barklem +44 (0) 20 7383
Carolyn Sansom 5100
Bell Pottinger (Public
Relations)
Jonathan Hodgkinson +44 (0) 20 3772
James Henderson 2500
About Shore Capital
Shore Capital is an AIM quoted independent investment group.
Founded and majority owned by entrepreneurs, for three decades
Shore Capital has been helping entrepreneurial businesses reach
their full potential, find committed long term investors and
develop into significant enterprises. The business offers
innovative corporate advice; a leading market-making business; some
of the most respected investment research available in the UK; and
a diverse range of high quality investment opportunities, including
its hugely successful VCTs and principal finance activities.
The Group is based in Guernsey, London, Liverpool, Edinburgh and
Berlin. Shore Capital Stockbrokers Limited, Shore Capital and
Corporate Limited, Shore Capital Limited and Puma Investment
Management Limited are each authorised and regulated by the
Financial Conduct Authority. Shore Capital Stockbrokers Limited is
a member of the London Stock Exchange.
www.shorecap.gg
This information is provided by RNS
The company news service from the London Stock Exchange
END
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