Capital Reduction

RNS Number : 3484P

Ground Rents Income Fund PLC

23 October 2012

 



GROUND RENTS INCOME FUND PLC (THE "COMPANY")

Capital Reduction

Ground Rents Income Fund plc, the CISX listed real estate investment trust, is pleased to announce that it is convening a meeting of its Warrantholders and a General Meeting of its Shareholders, respectively at 10.00am and 10.30am on 16 November 2012 at the Company's registered office, 111 Park Street, London W1K 7JL, for the purposes of seeking the approval of Shareholders and Warrantholders to a reduction in the Company's share premium account, in accordance with the proposal to undertake such a reduction contained in the Company's listing particulars dated 24 July 2012 (the "Listing Particulars").

The Company's investment objective is to generate consistent and significant income returns for Shareholders. As the Company is newly incorporated and is now embarking on its planned investment programme, there are currently no distributable reserves out of which to pay dividends, and it is likely such reserves will not otherwise be distributable for up to 18 months, given the costs which the Company is likely to incur initially as a result of the planned acquisitions of investment properties.  As intended, the Company now proposes to reduce its share premium account, thereby creating a distributable reserve, giving the Company the flexibility to return dividends to Shareholders faster than otherwise would have been the case.

The proposed capital reduction will, if approved by the Shareholders and Warrantholders, and subsequently approved by the Court, give rise to a reserve of £4,500,000 which will be credited to the profit and loss account of the Company and which will be available for distribution to Shareholders. It is anticipated that, following Shareholder and Warrantholder approval, and subject to the Court's hearing timetable and the further requirements of the Companies Act 2006 being satisfied, the reduction should take effect in December.

The Company also intends to make a minor alteration to its Articles of Association as a consequence of the redemption of the redeemable preference shares issued by the Company on 21 May 2012 out of the proceeds of the new issue of shares made on 24 August 2012, as described in Part 1 of the Listing Particulars. The redeemable preference shares were issued in order to obtain a certificate of entitlement to conduct business and to borrow under section 761 of the Companies Act 2006. Following the redemption there is now no requirement to have reference to the redeemable preference shares in the Articles, and accordingly the effect of the proposed amendment is to remove such reference.

The text of each of the circulars convening the meetings of the Shareholders and Warrantholders of the Company is appended to this announcement.

http://www.rns-pdf.londonstockexchange.com/rns/3484P_-2012-10-23.pdf

http://www.rns-pdf.londonstockexchange.com/rns/3484P_1-2012-10-23.pdf

23 October 2012

FOR FURTHER INFORMATION CONTACT:

Simon Wombwell (Director)                                                  [phone]

Singer Capital Markets Ltd (Broker)                                       [phone]

James Maxwell / Jenny Wyllie

Appleby Securities (Channel Islands) Limited (Sponsor)          [phone]

Gemma Campbell                     

 

END

 

 

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