Duet Real Estate Finance Limited Return of Capital and Buyback Programme (9909E)

TIDMDREF

RNS Number : 9909E

Duet Real Estate Finance Limited

22 July 2016

22 July 2016

Duet Real Estate Finance Limited

("DREF" or the "Company")

Return of Capital and Buyback Programme

Return of Capital

As announced on 13 July 2016, the Master Fund has fully realised its UK Prime Office (Canary Wharf) loan (Loan 2) following the sale of the portfolio underlying that investment. The Company's share of proceeds from Loan 2 was GBP5.7 million, equivalent to 7.93 pence per share. The Company subsequently received a capital distribution of GBP5.5m, equivalent to 7.67 pence per share, from the Master Fund.

Consequently, the Board announces today that it has resolved to return an amount of 7.67 pence per share, based on the current number of shares in issue, being GBP5.51 million in total, after retaining a reserve of GBP6,200 for the costs of this distribution. This return of capital will be done via an issue of redeemable B shares to existing shareholders and subsequent redemption of those shares pro rata to their holding at the time of the relevant issue.

The return of capital will be paid to shareholders on the register at the close of business on 5 August 2016 (the "Record Date"). The ex-date will be 4 August 2016. The B shares will be issued on 9 August 2016 (the "Issue Date"), redeemed on 10 August 2016 (the "Redemption Date") and settlement is intended to be effected on 11 August 2016. Payments of redemption monies are expected to be made either through CREST (in the case of shares held in uncertificated form) or by cheque (in the case of shares held in certificated form).

Following the return of capital, the NAV per share will be reduced by the amount of the return of capital and the costs of the redemption. Furthermore, the Company may continue to carry out purchases of its own shares from time to time, subject to regulatory restrictions and in accordance with the Company's general authority to repurchase shares granted by its shareholders at the Company's 2015 Annual General Meeting.

The NAV per share as at 31 March 2016 was reported as 14.48 pence. Following the return of capital of 7.67 pence per share, on a pro forma basis but not adjusting for any other movements in the period from 31 March 2016, NAV per share would be 6.81 pence.

The Company raised GBP76.0 million and has paid dividends of GBP19.3 million and returned capital, including via the B share issue above, of approximately GBP66.5 million. A total of GBP85.8 million therefore will have been paid out to shareholders since inception of the Company. The number of shares in issue at 21 July 2016 is 71.8 million. Details of the capital return mechanism are summarised in the Company's Prospectus, which may be accessed via the Company's website (www.dreflimited.com).

For further information, please contact:

   DRC Capital LLP                        [phone] 

Dale Lattanzio

Cyrus Korat

   Stifel Nicolaus Europe Limited     [phone] 

Neil Winward

Mark Bloomfield

Tunga Chigovanyika

This information is provided by RNS

The company news service from the London Stock Exchange

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July 22, 2016 06:05 ET (10:05 GMT)