Toc Property Backed Lend... Share Discussion Threads

[yieldsearch] 30/3/2019 12:30

NAV down due to some provisions on loan exposure ( some to related parties to the IM!!)
DVD down
they are saying that they have profit shares on a number of investment but.. due to ongoing economic and political uncertainty they are reducing the dividend.. so less income but potential more capital growth?

[diogenes1960] 29/3/2019 13:40

When are they going to report on last year? The clock is ticking.....

[speedsgh] 31/3/2017 16:16

Placing of up to 1.1 million Ordinary Shares to raise up to £1.1 million -

PBLT announces that it intends to raise up to £1.1 million to fund the continued growth of PBLT's portfolio of real estate loans.

The Placing proceeds are expected to be used to further diversify the Company's portfolio.

PBLT continues to see a healthy pipeline of future opportunities, both in terms of continuing to support existing projects, as well as new schemes expected to come to fruition throughout 2017...

[speedsgh] 27/1/2017 11:11

From IPO prospectus (see link in header)...

The Directors are as follows:

Stephen Coe, Non-executive chairman
Stephen is currently chairman of European Real Estate Investment Trust Limited and director (and chairman of the audit committee) of Raven Russia Limited, South African Property Opportunities PLC, Leaf Clean Energy Company, Weiss Korean Opportunities Fund Limited and Trinity Capital PLC. He has been involved with offshore investment funds and managers since 1990 with significant exposure to property, debt, emerging markets and private equity investments. He qualified as a Chartered Accountant with Price Waterhouse Bristol in 1990 and remained in audit practice, specialising in financial services, until 1997. From 1997 to 2003 he was a director of the Bachmann Group of fiduciary companies and Managing Director of Bachmann Fund Administration Limited, a specialist third party fund administration company. From 2003 to 2006 Stephen was a director with Investec in Guernsey and Managing Director of Investec Trust (Guernsey) Limited and Investec Administration Services Limited. He became self-employed in August 2006 providing services to financial services clients.

Stephen Black (Non-independent non-executive director)
Stephen leads the Tier One Capital lending team having previously worked as a Credit Specialist and investment manager at Barclays Wealth. He held senior roles at Kleinwort Benson and Coutts & Co, as well as spending time at Harvard University on the real estate programme before launching Tier One Capital as an independent high net worth investment and lending boutique. Stephen holds a Law Degree, MBA with Distinction and is currently studying towards the first PhD in Structured Products in the UK. Stephen has extensive experience in evaluating, structuring and funding credit projects and corporate finance opportunities of all sizes on behalf of major organisations as well as regularly engaging in high net worth deals in both the private client and corporate space.

Douglas Noble (Independent non-executive director)
Douglas has over 25 years’ private banking experience. In recent years he has focused on developing Brown Shipley’s private banking and lending proposition in Scotland, having previously been the Scottish Head of Private Banking for Barclays, Adam & Company and HBOS. He also launched Bank of Scotland’s first ever private banking operation. Douglas holds a law degree from Dundee University, as well as achieving the PCIAM and IMC from the CFA. He is a member of the Chartered Institute of Bankers, Scotland and holds to Chartered Banker status.

Matt Harris (Independent non-executive director)
Matt is a Chartered Accountant and an experienced M&A professional, who is a specialist in providing financial due diligence to Private Equity buyers and sellers. Matt was a partner at FTI Consulting (a US based, NASDAQ listed consulting firm), and prior to that was a partner in the Private Equity Group at KPMG, and began his career and qualified with Arthur Andersen. Matt has led due diligence on transactions across Europe and around the world, focusing on large and mid sized transactions, and has led relationships with London and European based Private Equity funds. Matt has a Bachelor’s degree in Economics and Finance from Auckland University, and an MBA from Manchester Business School.

Stephen Black will be subject to annual re-election by Shareholders, and has agreed to waive his director fee, for so long as he is interested in the Company’s investment adviser.

[speedsgh] 27/1/2017 11:09

From IPO prospectus (see link in header)...

DIRECTORS & ADVISERS

DIRECTORS
Stephen Coe (Independent non-executive chairman)
Stephen Black (Non-independent non-executive director)
Douglas Noble (Independent non-executive director)
Matt Harris (Independent non-executive director)

INVESTMENT ADVISER
Tier One Capital Limited
Keel House
Garth Heads
Newcastle-upon-Tyne NE1 2JE
United Kingdom

SPONSOR & FINANCIAL ADVISER
finnCap Ltd
60 New Broad St
London EC2M 1JJ
United Kingdom

[speedsgh] 27/1/2017 11:05

Director/PDMR Shareholding -
Stephen Coe (Non-executive chairman) bought 15,000 initial issue placing shares at 100p per share on 24/1/17 = £15,000

Director/PDMR Shareholding -
Stephen Black (NED) bought 21,800 initial issue placing shares at 100p per share on 24/1/17 = £21,800

Director/PDMR Shareholding -
Matt Harris (NED) bought 50,000 initial issue placing shares at 100p per share on 24/1/17 = £50,000

[speedsgh] 27/1/2017 11:00

From IPO prospectus (see link in header)...

THE INITIAL ISSUE
The Initial Issue comprises the issue of Ordinary Shares pursuant to the Initial Offer for Subscription. Following the Initial Issue, the Share Issuance Programme may be implemented by a Placing-Only Issue and/or a Subsequent Offer for Subscription, the terms of which will be published at the time of such Placing-Only Issue and/or Subsequent Offer for Subscription pursuant to the Share Issuance Programme. The Share Issuance Programme may also be implemented by the issue of new Ordinary Shares and/or C Shares as consideration for the acquisition of further loans that are consistent with the Company’s investment objective and policy.

THE SHARE ISSUANCE PROGRAMME
The Share Issuance Programme will open on 12 January 2017 and will close on 11 January 2018 (or any earlier date on which it is fully subscribed). The maximum number of Ordinary Shares to be issued pursuant to the Share Issuance Programme is 150 million and the maximum number of C Shares to be issued pursuant to the Share Issuance Programme is 150 million. The maximum number of Shares should not be taken as an indication of the number of Shares finally to be issued. The issue of Shares under the Share Issuance Programme is not being underwritten.

It is intended that the price at which Ordinary Shares are issued on a non-pre-emptive basis under the Share Issuance Programme will be at the prevailing Net Asset Value per Ordinary Share at the time of issue or a premium to the prevailing Net Asset Value per Ordinary Share at the time of issue, after related costs have been deducted, and at 100 pence per C Share for any issue of C Shares.

Following the Initial Issue, the issue of Shares under the Share Issuance Programme is at the discretion of the Directors. Issuance may take place at any time prior to: (i) the final closing date of 11 January 2018; or (ii) such earlier date as all the Shares the subject of the Share Issuance Programme are issued. In relation to each Tranche, which includes an offer for subscription component, a new securities note and new summary will be published and an announcement will be released through a Regulatory Information Service, including details of the number of Shares allotted and the applicable Issue Price.

[speedsgh] 26/1/2017 11:38

From IPO prospectus (see link in header)...

DIVIDEND POLICY
The Company will, once the Net Issue Proceeds have been substantially invested, target an annualised net dividend yield of seven per cent. per annum, calculated by reference to the Initial Issue Price at Initial Admission. The Company will target a total return over the longer term of between eight per cent. and nine per cent. by reference to the Initial Issue Price at Initial Admission.

The Company intends to pay regular dividends on a quarterly basis with dividends declared on or around February, May, August and November in each year, save that the Company intends to declare its first dividend in or around May 2017. The Directors anticipate that the annualised net dividend yield for the period from Initial Admission to 30 November 2017 will be 0.69 per cent. by reference to the Initial Issue Price.

The Company intends to distribute at least 85 per cent. of its eligible income or such other percentage which may be prescribed by HMRC in accordance with Chapter 4 of Part 24 CTA 2010.

The annualised net dividend yield and total return targets are targets only and not profit forecasts. There can be no assurance that the targets can or will be met and this should not be taken as an indication of the Company's expected or future results.

[speedsgh] 26/1/2017 11:36

From IPO prospectus (see link in header)...

Borrowing
The Company may use gearing if it believes it will enhance Shareholder returns over the longer term. If the Company does decide to introduce gearing it would intend to limit the Company's borrowings to a maximum of 30 per cent. of the Net Asset Value at the time of drawdown.

Cash management
The Company may from time-to-time have surplus cash. It is expected that any surplus cash will be temporarily invested in cash or cash equivalents, money market instruments, bonds, commercial paper or other debt obligations with banks or other counterparties having a single-A (or equivalent) or higher credit rating as determined by an internationally recognised rating agency or gilts or otherwise approved by the Board.

Use of derivatives and hedging
The Company may invest through derivatives for efficient portfolio management. In particular, the Company may engage in interest rate hedging or otherwise seek to mitigate the risk of interest rate increases as part of the Company's efficient portfolio management.

In the event of a breach of the investment policy set out above, the Investment Adviser shall inform the Directors upon becoming aware of the same and if the Directors consider the breach to be material, notification will be made to a Regulatory Information Service.

No material change will be made to the investment policy without the approval of Shareholders by ordinary resolution.

[speedsgh] 26/1/2017 11:35

From IPO prospectus (see link in header)...

Investment restrictions
The Company will observe the following investment restrictions:
• the Company will derive its income from a portfolio of not less than five loans;
• no more than 50 per cent. of the Net Asset Value will be exposed to the regional residential housebuilding sector, calculated at the time of investment;
• no more than 50 per cent. of the Net Asset Value will be exposed to the small to medium commercial property development sector, calculated at the time of investment;
• no more than 30 per cent. of the Net Asset Value will be exposed to direct sale and leaseback vehicles, at the time of investment;
• no more than 25 per cent. of the Net Asset Value will be exposed to subordinated loans, calculated at the time of investment and/or subsequent subordination;
• no more than 10 per cent. of the Net Asset Value will be exposed to bridging loans, selected loan financings and other debt instruments, calculated at the time of investment;
• no more than 5 per cent. of the Net Asset Value will be exposed to unsecured loans, calculated at the time of investment;
• no single investment, or aggregate investments secured on a single property or group of properties or connected with related borrowers, will exceed 20 per cent. of the Net Asset Value, calculated at the time of investment;
• no more than 25 per cent. of the Net Asset Value for the first six months after Initial Admission, and no more than 20 per cent. of the Net Asset Value thereafter will be exposed to any one borrower or related borrowers or developer or related
developer entities calculated at the time of investment;
• no more than 10 per cent. of the Net Asset Value will be exposed to any sector other than regional residential housebuilding, small to medium commercial property
development and direct sale and leaseback vehicles; and
• the Company will not invest in other listed closed-ended investment companies.

[speedsgh] 26/1/2017 11:33

From IPO prospectus (see link in header)...

Profit Shares
The Company anticipates that, for many of the fixed rate loans it will make, it will have the benefit of an associated profit share arrangement: usually obtained by acquiring (at nil cost) a minority equity stake in the relevant borrower project development vehicle. It is anticipated that each Profit Share will be with a particular borrowing team pursuant to which the Company will have a right of first refusal to provide the financing for that borrowing team's next five projects via the relevant borrower project development vehicle. The Directors (as advised by the Investment Adviser) anticipate that the Company will have the benefit of associated Profit Shares for approximately 80 per cent. of its future
loan advances.

The Directors intend to negotiate Profit Shares on a developer-by-developer basis. The Company will have the benefit of suitable minority protection rights (e.g. reserved matters requiring shareholder approval and the ability to appoint director(s) to the boards of the project development vehicle) in order to protect its investment but neither the Company nor the Investment Adviser will be involved in the day-to-day operations of the project development vehicle or associated borrowing team.

Given the time frame required to fully maximise the value of a Profit Share, the Board expects that the Company's interest in a Profit Share will be held for the medium to long term. The Company will only take the benefit of Profit Share investments where the underlying loans are consistent with the investment objective and investment policy of the Company, and following completion of satisfactory due diligence, irrespective of whether a Profit Share is available.

The Initial Portfolio of 10 loans includes loans associated with 3 borrowers who have previously entered into profit sharing arrangements with the Investment Adviser. The Company will not have a right of first refusal on any further loans to such borrowers. However, Profit Share arrangements for future loans advanced by the Company to projects associated with those borrowers would accrue for the
benefit of the Company and would not be retained by the Investment Adviser.

[speedsgh] 26/1/2017 11:29

From IPO prospectus (see link in header)...

Investment objective
The Company's investment objective is to provide Shareholders with a consistent and stable income and the potential for an attractive total return over the medium to long term while managing downside risk through: (i) a diversified portfolio of fixed rate loans predominantly secured over land and/or property in the UK; and (ii) receiving, in many cases, the benefit of an associated profit share arrangement, usually obtained by acquiring (at nil cost) a minority equity stake in the relevant
borrower project development vehicle (“Profit Shares”).

Investment policy
The Company will seek to achieve its investment objective through: (i) a diversified portfolio of fixed rate loans predominantly secured over land and/or property in the UK; and (ii) receiving, in many cases, the benefit of an associated Profit Share, usually obtained by acquiring (at nil cost) a minority equity stake in the relevant borrower project development vehicle.

The Company will attempt to reduce downside risk by focusing on secured debt with both quality collateral and contractual protection.

The Company will make investments primarily through senior secured loans although other loans such as bridging loans, subordinated loans, selected loan financings and other debt instruments may be considered if appropriate.

The Company anticipates that the typical loan term will be between one and five years. The Company retains absolute discretion to make investments for either shorter or longer periods.

Loan to value
The Company will typically seek to originate debt where the effective loan to real estate value ratio of any investment is between 40 per cent. and 100 per cent. at the time of origination. The Company will typically seek to achieve a blended LTV across the Portfolio of no more than 75 per cent. (based on the initial valuations at the time of loan origination) once fully invested.

Sector
The Company's portfolio is intended to be appropriately diversified by sector and will be predominantly split between:
• regional residential housebuilding across the UK, with a preliminary focus on non-London based property;
• small to medium commercial property development across the UK primarily focusing on small serviced office space, hotel developments and wedding and conferencing venues; and
• direct sale and leaseback vehicles primarily operating in the professional sectors of dentists, accountants, solicitors and finance professionals.

[speedsgh] 26/1/2017 11:25

New property lending trust targets 7% yield -

The TOC Property Backed Lending Trust (TOC PBLT) has been listed on the London Stock Exchange with an initial £17.3 million portfolio of 10 loans. Numis notes that 11.6 million shares had already been issued at 100p for the initial portfolio, so £5.7 million of fresh capital was raised at launch.

The firm is hoping to grow the investment trust to £150 million over the next 12 months.

The trust will focus on regional housebuilding across the UK, initially outside of London, along with small serviced offices, hotel developments and sale and leaseback vehicles operating in professional sectors, such as dentists and accountants. The fixed rate loans will predominantly be secured over land or property. The fund will also seek to originate debt with loan-to-value ratios between 40% and 100%, resulting in an average LTV across the portfolio of 75%.

Tier One Capital said that in many cases the trust will also benefit from a profit share in the developments.

The portfolio targets a 7% net dividend yield, paid via a quarterly dividend. The team says that over the long-term, annual returns of 8-9% are achievable. The portfolio of 10 loans has an average length of 1.6 years, alongside a weighted average annualised yield of 8.3%. This measures all of the income received divided by the average number of investments for the year.

IPO prospectus (12/1/2017) -

DIVIDEND POLICY
The Company intends to:
- Target an annualised net dividend yield of 7% once Net Issue Proceeds have been substantially invested.
- Pay regular dividends on a quarterly basis (payable on or around February, May, August & November each year).
- Declare its first dividend in or around May 2017. The Directors anticipate that the annualised net dividend yield for the period from Initial Admission to 30 November 2017 will be 0.69 per cent. by reference to the Initial Issue Price.
- Distribute at least 85 per cent. of its eligible income or such other percentage which may be prescribed by HMRC in accordance with Chapter 4 of Part 24 CTA 2010.