Warner Estate Holdings PLC Interim Management Statement (7411W)

TIDMWNER

RNS Number : 7411W

Warner Estate Holdings PLC

31 January 2013

Warner Estate Holdings PLC

("the Company" or "the Group")

Interim Management Statement

As announced on 30(th) November 2012, the Group's primary focus continues to be negotiations with its three lenders; Barclays Bank PLC ("Barclays"), Lloyds Banking Group ("Lloyds") and an affiliate of The Royal Bank of Scotland ("the RBS Affiliate") (in which a Blackstone fund has a minority interest and which is advised by Blackstone Real Estate Debt Advisors ("BREDA")) (together the "Lenders").

The Group's facilities matured on 31 December 2012 and, as previously anticipated, the Group was unable to meet its repayment obligations at that date. The Lenders have reserved their rights whilst the Group continues negotiations to restructure its outstanding debt. As previously announced during these negotiations, the Group remains reliant on the continuing support of the Lenders and the outcome of the negotiations will determine the Group's future.

The Group has completed the disposal of the properties over which LBG and Barclays held security, the proceeds being used to reduce debt, leaving four properties under the Group's management over which the RBS Affiliate has security.

The strategic aim of the Group is to focus solely on asset management activities, initially based on the Ashtenne Industrial Fund (AIF) and the Apia Regional Office Fund (Apia). The disposal of the properties over which LBG and Barclays held security were anticipated steps towards the achievement of this objective. Security is still held over the Group's asset management business and its units in AIF and Apia.

Following the resignation of Mr D Lanchester, Miss S Harries was appointed Company Secretary on 30(th) January 2013. The Board thanks Mr Lanchester for his valued contribution over many years.

The Group's objective is to reach satisfactory arrangements with the Lenders and thereafter continue as an asset management business. Initially this would be based on the existing asset management contracts for AIF and Apia. Achieving the release of the security over the asset management business is fundamentaland the continuing viability of the asset management business is dependent on the timing and quantum of management fee income and the implementation of further cost savings.

31(st) January 2013

-ends-

For further information contact:

 
 Warner Estate Holdings PLC              Numis 
 Philip Warner, Chairman                 Heraclis Economides 
 Mark Keogh, Group Managing Director 
 Robert Game, Group Managing Director,   Tel: [phone] 
  Property 
 Tel: [phone] 
 Web: www.warnerestate.co.uk 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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