ICG-Longbow Senior Secured UK Property Debt Investments (the “Company”) is a Guernsey domiciled, closed-end, premium listed investment company on the London Stock Exchange.
The investment objective of the Company is to construct a portfolio of good quality, defensive, self-originated senior debt investments secured by first charges against UK commercial property investments, providing dividends of c.6% p.a., paid quarterly and a target underlying portfolio IRR of 8% p.a.
The Company’s senior loan investment strategy is implemented through its investment manager ICG-Longbow, a subsidiary of Intermediate Capital Group plc. ICG-Longbow has a multi-disciplinary team of 18 solely focused on raising, investing and managing funds in UK commercial real estate debt. The team includes 11 investment professionals and two partners with specific responsibility for credit risk management and fund operations.
The Company believes its investments offer predictable returns with lower risks due to the following factors:
- Senior secured position: The Company’s underlying security pool will offer first-ranking security over the underlying property collateral and each loan will have an exposure no greater than 65% of the relevant property’s market value.
- UK focus: The Company will invest in loans secured predominantly by UK commercial property and, by doing so, will benefit from the ICG-Longbow investment team’s experience and focus in the market, together with the strong legal framework which will underpin each loan.
- ICG-Longbow network: As senior lenders continue to withdraw from the commercial real estate debt market, ICG-Longbow’s investment team will be able to access strong deal flow of attractive senior debt financing opportunities through its longstanding network of borrowers and advisers.
- Portfolio selection: Through careful asset selection and by lending to some of the UK’s most experienced property companies against properties with value enhancement potential, a portfolio of loans is constructed to provide attractive, predictable returns whilst also derisking the loan position over time. ICG-Longbow’s track record demonstrates the effectiveness of this approach.
Details of the Company's investment portfolio can be found in the latest fact sheet Q3 Fact Sheet 2013