Two new loans demonstrate borrowers’ keen appetite

Two new loans demonstrate borrowers’ keen appetite

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.

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