European REIT may be new vehicle for Quidnet. Quidnet said, in its most recent report and accounts, that its sale of the final property asset in the European REIT’s portfolio, La Gaude, located in Nice, France should complete shortly. The net sale proceeds to the company will be approximately EUR5.75 million, being 0.74 cents per share. Consistent with the realisation strategy in place since 2011, the Board intends to make a further cash distribution to shareholders. This will follow the Annual General Meeting of the Company on 29 June 2017.
Proposal from Quidnet Capital Partners
The Board is also considering a proposal received from Quidnet Capital Partners LLP. This would mean that the company would change its investment objective and strategy to focus on high yielding commercial property. They would actively manage the portfolio to drive investment returns. The strategy is to deliver an attractive total return to shareholders, underpinned by a target a 6+ per cent dividend yield. Quidnet will focus on high income industrial and offices in England and Wales. It believes that these are the sectors and locations which have the highest rental growth prospects. Under the proposal European REIT would appoint Quidnet as the investment manager. It would also undertake a significant equity raise to provide capital to invest in the new investment strategy.
Quidnet is a commercial real estate asset management group, led by Chief Executive Richard Tice. Richard and his team have acquired over GBP430 million of commercial real estate for clients since the middle of 2014. Prior to joining Quidnet, Richard was Chief Executive of CLS Holdings plc, between 2010 and early 2014, during which time the company’s share price increased from GBP4.70 to GBP13.
The Board and Quidnet have signed a heads of terms agreement and will be undertaking a consultation with shareholders and potential new investors in order to ascertain the viability of the proposals. Any change of investment strategy would be conditional on, inter alia, shareholder and regulatory approval.
This consultation is expected to be concluded by early July at which time the company will provide an update to shareholders.
ERET : European REIT may be new vehicle for Quidnet