Appointment as Asset Manager
January 28 2010 - 7:59AM
UK Regulatory
TIDMARTO
Arteon PLC / Index: AIM / Epic: ARTO
Arteon PLC (`Arteon' or `the Company')
Appointment as Asset Manager
28 January 2010
The board of the Company announces that Arteon has agreed heads of terms with a
recently incorporated Isle of Man property company (`IOMCO') to provide it with
asset management services (the `Agreement'). Arteon will provide the asset
management services through a newly formed subsidiary.
In a two phased process, initially IOMCO is seeking to raise sufficient equity
to acquire pre let German residential property assets of up to Euro 30 million,
with the second phase acquiring property assets of up to Euro 100 million.
IOMCO will seek to leverage itself to optimise returns.
IOMCO commenced fund raising on 11 January 2010 and has secured conditional and
unconditional equity commitments to date which, provided that conditions are
satisfied, would allow it to acquire up to Euro 10 million of assets, assuming
leverage can be obtained.
The Agreement provides that Arteon will receive:-
* an annual fee of 0.6 per cent. of gross assets under management subject to
a minimum monthly fee of Euro 1,000; and
* an asset acquisition fee of 0.6 per cent of gross assets acquired, payable
on acquisition.
Fees will only become payable to Arteon in the event that IOMCO unconditionally
reaches its minimum subscription level, at which time the Company will make a
further announcement.
Arteon is in negotiations with a number of vendors of suitable German
residential property assets that would meet IOMCO criteria of proving an
initial yield on purchase of between 9 to 11 per cent.
Arteon will use the Company's recently licensed Orchos platform (see
announcement made by the Company on 27 October 2009) to report and manage the
underlying assets of IOMCO.
Peter Hagerty, Chairman of Arteon, stated: "We are delighted to be able to
announce this engagement which represents the first commercial exploitation of
our new platform. This vehicle is focused on delivering an attractive level of
income to its investors within the highly transparent reporting framework
offered by the Orchos platform. Importantly, it will serve as a valuable
showcase as we set out to enable similar investment vehicles in the near
future."
** ENDS **
For further information visit www.arteonplc.com or contact:
Peter Hagerty Arteon PLC Tel: +44 (0)20 7148 7700
Gavin Burnell Astaire Securities PLC Tel: +44 (0)20 7448 4400
Isabel Crossley St Brides Media & Finance Tel: +44 (0)20 7236 1177
Ltd
Paul Youens St Brides Media & Finance Tel: +44 (0)20 7236 1177
Ltd
END
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