UK debt fund manager ICG-Longbow is to raise more equity for its £112 mln (€124 mln) listed vehicle, Senior Secured UK Real Estate Debt Investments.
The company announced a placing at 102 pence per share, a premium to the latest published net asset value of 99.96p per share at 31 July 2017 and in line with the recent trading price.
Fresh equity from the placing will be invested together with proceeds from loans repaid.
The fund originates small-to-medium sized, first charge, bilateral loans, typically £10-£20 mln, across the UK. In March, the fund’s board won backing to increase the loan-to-value cap to 85% as the manager considers there to be good opportunities to lend above 70% LTV.
Its latest, £9 mln deal carries an initial LTV of 83.7% secured against three mixed-use assets in the London Borough of Kingston and also includes a profit participation.
