RNS Number : 4963W
Belvedere Leisure Resorts PLC
18 August 2020
 

18 August 2020

 

Belvedere Leisure Resorts plc

 ("Belvedere" or the "Company")

CORPORATE UPDATE

The Directors of Belvedere are pleased to provide the following update to the market.

 

Following on from the Company's last update to the market, discussions have continued with Landal GreenParks UK Limited ("Landal") regarding a change to the strategy for delivery of leisure parks within the UK. In particular the focus for demand has switched to the delivery of lodge units within the UK, without necessarily delivering the associated four-star services hub at the outset.

 

The Company is pleased to announce that following these discussions agreement has been reached in principle to deliver services within the UK to accommodate the growing demand for domestic tourism and staycations. Further announcements are expected over the next few weeks regarding the formalisation of those arrangements.

 

Additionally, following feedback from a number of investors and potential investors, the Board have considered the strategy of the Company in relation to the use of proceeds from bonds issued.

 

Given the unprecedented and quite extraordinary circumstances that have existed in the United Kingdom and the world over the last few months, clear opportunities have come to the fore to take advantage of the knowledge and skills of the team in delivering returns arising from distressed property assets which can be acquired for leisure park development.  Owing to strong investor demand for this strategy, the Company will be amending its target raise size, though less money will be required for the underlying lodge delivery strategy with Landal. 

 

The original target assets for the company was the site at Barncrosh Farm, Bridge of Dee, Castle Douglas, Dumfries & Galloway, Scotland, DG7 1TX ("Barncrosh Site"),which is owned by Belvedere Leisure Park Limited ("BLP"). BLP was previously the 100% shareholder of the Company however, as a result of the change in strategy, and to avoid any potential conflicts between the interests of the bondholders and BLP , the ownership of the Company has been altered to remove any group structure whilst keeping the same ultimate beneficial ownership in place.  This means that BLP and the Company are separate, stand alone entities to allow the new strategy to be pursued over a wider asset base than a single asset.

 

Discussions were ongoing for a significant period of time with the existing lender at the Barncrosh Site over redeeming the existing lending in stages to allow for the partial acceleration of the revised strategy with Landal.

 

Unfortunately, the timing and amounts in question required by the existing lender in order to agree for a partial release of security or shared security over the Barncrosh Site, to enable the implementation of the revised strategy at the Barncrosh Site were too far apart to reach an accommodation, when the Company balanced its responsibilities to investors and potential investors as compared to the requirements of the existing lender.  Additionally, given the changes to property values the decline in the market for the underlying property and, the revised Landal strategy arising from the Covid-19 pandemic, the Company decided that the overall pricing and returns would be better served for investors by seeking to acquire alternative sites that are available for delivering the Strategy, whilst continuing with negotiations to acquire the Barncrosh Site into the Company.

 

As such a decision has been taken to place BLP into administration, and the Company has instructed its representatives to enter into negotiations to seek to acquire the Barncrosh Site into the Company as part of the revised strategy mentioned above.  

 

As a result of this decision, future Bonds issued by the Company will no longer be guaranteed by BLP, but property assets will be acquired into the Company as collateral assets to back the Bonds instead.

 

The Company has also been approached by a well-known figure within the distressed assets and lending sector, and, with a view to strengthening the management team, expect to be able to make further announcements over the next few weeks.

 

In the meantime, fundraising is picking up momentum following the hiatus during the depths of the pandemic. The Company looks forward to delivering on its new strategy and will be updating further over the coming weeks and months.

 

 

For further information, please contact:

 

 

Mr Alan McNamara
Executive Director

Belvedere Leisure Resorts plc

T: + 44 (0) 7851 88 00 70

Email: alan@belvederepark.co.uk

 

Alfred Henry Corporate Finance Limited
AQSE Corporate Advisor to Belvedere Leisure Resorts plc
Jon Isaacs
www.alfredhenry.com
Tel: +44 (0) 203 772 0021

 

 




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