Property investment fund announces pivot to residential market
A property investment fund managed by wealth management firm Tier One Capital (TOC) has confirmed it will focus its efforts on supporting residential property developers in North East England and Scotland.
Following a general meeting of TOC Property Backed Lending Trust (PBLT) shareholders, the public limited company voted to amend sector lending caps and make its residential investment policy more flexible, in line with current market trends.
This will allow the PBLT to increase its focus on the residential market, which is experiencing increased demand from property developers and housebuilders in light of the coronavirus pandemic.
In addition, PBLT’s shareholders voted for a new sustainable dividend policy, which aims to provide 4p per share per year for shareholders (a current yield of over 4.5% per annum) with the potential for an additional year end special dividend depending on financial performance during the period.
This will be a 33% increase on the 3p per share returned during the financial year ending 30 November 2020.
This updated approach will support the objective of growing the value of the London Stock Exchange-listed investment company and maintain the momentum it has built, even during a period of economic uncertainty as a result of the coronavirus pandemic.
PBLT achieved annual revenues of £2.3m in its last financial year, an increase from £2.2m, generating a pre-tax profit of £856,000.
Ian McElroy, Chief Executive of Tier One Capital, said: “The shareholders are very supportive of PBLT’s approach, which is ensuring the investment policy is fit for purpose in the current market environment.
“This should also enable the fund to return sustainable dividends on a regular basis to shareholders, while also continuing to grow the underlying net asset value of the company.
“This agreement with the shareholders ensures PBLT can be more flexible and increase the support it provides to housebuilders in the North East and Scotland who are contributing to government targets of building 300,000 new homes each year.”