TIDMPBLT

RNS Number : 5071G

TOC Property Backed Lendng Tst PLC

17 March 2020

THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED IN IT ARE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO OR FROM ANY JURISDICTION WHERE TO DO SO MIGHT CONSTITUTE A VIOLATION OF LOCAL APPLICABLE SECURITIES LAWS OR REGULATIONS.

TOC PROPERTY BACKED LENDING TRUST PLC

(the "Company")

Portfolio Update

The Company is pleased to announce three successful profit share arrangements with the Marley Hill, Springs and Newgate Street projects, recording gains of GBP38,000, GBP44,000 and GBP56,000 respectively. The Marley Hill gain has been realised, following the completion of this project, and follows the GBP104,000 gain announced in the financial statements for the year ended November 2018. The Springs and Newgate Street gains are projected from the current trading position of both projects.

Ahead of the release of the Company's full year accounts, the Board has resolved to record a net overall loan book impairment of c.10%, driven largely by the following two underperforming longstanding legacy projects:

Pendower Hall

The Board made an initial impairment against the Company's original GBP2m loan of GBP0.2m in November 2018. The Company has agreed a restructuring of its loan facility to take receipt of additional collateral via equity in a private trading business. The Board and Investment Adviser are now working to appraise the value of this equity and will, informed by the results of this work, consider the merits of retaining the equity as a non-core holding or liquidating it, in full or in part, to reduce the exposure. Until such time as an accurate valuation can be established, the Board and Investment Adviser believe it appropriate to impair the loan by a further GBP0.842m to GBP0.958m constituting 3.67% of the loan portfolio.

West Auckland

The West Auckland loan has previously not performed in line with expectations and the Board made an impairment against the interest of GBP0.139m in November 2018. Since then, due to ongoing trading difficulties, with sales rates slowing due to challenging economic conditions, the Board has decided to make a capital impairment against the GBP2.975m West Auckland loan of GBP1.654m, being a c.60% impairment to this loan, and representing 6.32% of the loan portfolio.

These numbers will be reflected in the financial statements for the year ended November 2019.

All figures remain subject to final audit confirmation in the full year results due to be released later this month.

The Board also confirms that former co-fund manager, Stephen Black is no longer involved in any capacity with Tier One Capital Ltd., the investment adviser to the Company.

For further information regarding the Company (Ticker: PBLT) (LEI: 213800EXPWANYN3NEV68) please call:

 
 Tier One Capital Ltd (Investment Adviser)      +44 (0) 191 222 
  Ian McElroy/Brendan O'Grady                    0099 
 finnCap Ltd (Financial Adviser and Broker)     +44 (0) 207 220 
  William Marle/Giles Rolls                      0500 
 Maitland Administration Services (Scotland)    +44 (0) 1245 950 
  Limited (Secretary)                            310

Notes to Editors:

TOC Property Backed Lending Trust PLC is a closed-end investment company. Its 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) in many cases, receiving 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's investment adviser is Tier One Capital Limited ("Tier One" or the "Investment Adviser"). Tier One is a Newcastle upon Tyne headquartered wealth management company and the appointed investment adviser to the TOC Property Backed Lending Trust. Tier One has offices in Newcastle, London and Switzerland, and specialises in providing wealth management advice to high net worth individuals, corporates and charities.

The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

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March 17, 2020 12:09 ET (16:09 GMT)

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