Secured finance
Information as per 30 September 2018 half year report
| Investment | Investment type | Carrying value | Income return | Property type / underlying security | Investment notes |
|---|---|---|---|---|---|
| Secured senior finance | First charge secured loans | £6.2m * | 8-10%** | Diversified loan portfolio focussed on real estate investments and developments | Secured debt |
| Secured mezzanine finance | Second charge secured loans |
£14.2m * |
12%/20%** |
Diversified loan portfolio focussed on real estate investments and developments |
Secured debt and subordinated debt |
* Including accrued coupon at the balance sheet date
** Annual coupon
In line with the objective of creating a diversified portfolio of smaller high return real estate backed loans, ART has extended its lending activity with twelve loans being advanced during the period.
As at 30 September 2018, ART had invested £20.4 million in smaller real estate loans. Post period end, a further two loans totalling £1.6 million were funded, an additional drawdown of £0.2 million was made on an existing loan, one loan was repaid for £0.3 million and a part payment for another loan was received amounting to £0.2 million.
Further loan opportunities are continually being evaluated. Each loan will typically have term of up to two years, a maximum 75.0% loan to value ratio and is targeted to generate a high risk adjusted income return. Repayment proceeds will be rotated into new loan assets.
