Two new loans demonstrate borrowers’ keen appetiterealbondadmin
Two new loans since November are keeping bondholders’ investments in profitable use. One is financing a residential redevelopment nearing completion in Tonbridge, the other relates to the conversion of a former Surrey nursing home into modern studio flats. Both loans are secured by first charges over the properties. Meanwhile a previous loan has reached maturity and the borrower has repaid the advance, with full interest.
Taking account of these recent changes to the loan book, the loan-to-value ratio reveals that bondholders’ security has strengthened further; the advances represent only 42.6% of the available security (compared with 75% permitted by the investment mandate).
The directors of the bond issuer, Real Estate Associates (GP) plc, have resolved to continue offerings of Income and Capital Bonds to further new investors.