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O Twelve Estates

  • BY: Andrew Hore |
  • POSTED: 15/07/2009 |

Property investor O Twelve Estates has gone from net assets to net liabilities in the past six months.

The value of the property portfolio has fallen from 250m to 174m at the end of March 2009. Net debt is 162m. The company is in default of its loan to value ratio of 75%.

The facility is being renegotiated. It will still last until December 2014, but it will reduce to 140m at the end of March 2011. The loan to value must not exceed 85% but this percentage will reduce over the years to 75% at the end of March 2012. The loan to value has to fall to 70% before the cash lock up - rental income in excess of financing costs plus 400,000 a quarter is retained by the banks - is ended. The interest rate will increase.

There was a small cash inflow from operations in the year to March 2009. Annualised income is 13.8m.

At 4.5p a share, down 0.625p on the day, O Twelve is valued at 5.51m. 

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