Martlet Homes Limited Statement re Collateral Security Update (4943M)

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RNS Number : 4943M

Martlet Homes Limited

28 July 2017

Martlet Homes Limited GBP400 million 3.00% Secured Bonds due 2052 ISIN:XS1602093483

Collateral Security Update

Following the Grenfell Tower fire, the Hyde Group (including and on behalf of Martlet Homes Limited) has been carrying out its own independent, specialist inspections on all of its high rise blocks to ensure they not only fully comply with fire safety regulations but also consider the implications of Grenfell. Hyde has a comprehensive fire risk assessment programme in place which includes additional in-depth fire risk surveys for our high rise properties.

As part of this programme the cladding of the five buildings which make up the Harbour, Seaward, Garland, Hammond and Blake Towers In Gosport (together 'The Gosport Towers' have been subject to intrusive (Type 4) fire surveys. The Gosport Towers are the only assets within Martlet on which we have felt the need to initiate such tests. These buildings range from 11 to 17 storeys high.

The external cladding of these five buildings does not contain the aluminium composite material (ACM) used on Grenfell Tower and, following repair works to the compartmentation of the buildings, they are compliant with all current fire regulations. However, it is envisaged that the polystyrene and render cladding may need to be replaced in addition to some other enhancement works. We are awaiting additional survey results from our building consultants and fire risk assessors before a final decision is made.

The Gosport Towers are charged as a small part of the wider security for Martlet's GBP400 million Secured Bonds. The total value of the 433 flats contained within these 5 buildings is GBP12.8 million as at 5(th) May 2017, or just over 2% of the total security pool which was valued of GBP605 million. As such even if the value of these five blocks were to be reduced to zero, the GBP400 million Bonds would still remain significantly over-collateralised.

Our precautionary measures are broad and well considered. We are working locally, in direct partnership with Hampshire Fire and Rescue Service, to undertake joint property inspections with them. In Gosport, we also benefit from having our own dedicated Estate Services team who carry out daily checks of all five blocks.

We have completed further checks on fire safety in individual homes and undertaken tests to the fabric of the building. Until our evaluations are completed we have introduced a 24/7 safety warden patrol in each block who will act as an early warning system and ensure communal areas and exits are free from obstructions.

Residents have been kept fully informed and reminded to take the time to ensure they know what to do in the event of a fire and familiarise themselves with the details specific to their building and follow the directions given. The website has also been updated with useful fire safety information in response to frequently asked questions coming in on this topic. https://www.hyde-housing.co.uk/fire-policies/

Until our evaluation is complete it is not possible to estimate the cost of any potential works which might or might not be carried out at these five blocks. However Martlet's current available cash balance of GBP129.3 million is clearly more than sufficient to cover any foreseeable costs.

We remain in close contact with residents, keeping them updated at every stage about what is happening and are working hard in the background poised to take appropriate actions in response if any adverse findings are confirmed that require responsive action.

Contact details:

Carol Jones

Director of Communications,

Marketing and Public Affairs

T: 020 3207 2522 (ext.8822)

M: 07877 996574

E: [e-mail]

The Hyde Group, 30 Park Street, London SE1 9EQ

This information is provided by RNS

The company news service from the London Stock Exchange

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July 28, 2017 12:10 ET (16:10 GMT)