FOR IMMEDIATE RELEASE
28 May 2019
LONDON & ASSOCIATED PROPERTIES PLC:
OAKTREE CAPITAL MANAGEMENT JOINT VENTURE
London & Associated Properties PLC (“LAP”) today announces that it and Oaktree Capital Management have declined to inject further capital into their Harrogate Portfolio (“the Portfolio”) joint venture following a revaluation by the senior lender resulting in a breach of the loan to value covenant.
Consequently, the mezzanine provider, DRC, has indicated its intention to take over the equity of the Portfolio, comprising three shopping centres, in accordance with the terms of the mezzanine loan documentation.
LAP currently owns a 3.17% interest in the Portfolio. As a result of DRC’s intentions LAP’s interest in the joint venture has been written off. The capital loss to LAP will be £1.783 million although this has no cash flow implications.
LAP currently asset and property manages the Portfolio though its wholly owned subsidiary LAMS for which it receives annual gross fees of approximately £400,000. LAMS’ exit from these management contracts is being negotiated.
John Heller, Chief Executive, LAP. Tel: 020 7415 5000
Baron Phillips, Baron Phillips Associates. Tel: 07767 444193