We are writing to update you on the liquidation of the London fund and the sale of properties owned by the Regional Capitals fund.

London fund

The Joint Liquidators have confirmed that they have carried out the necessary steps and are able to proceed with paying a distribution to shareholders. There was an unexpected delay in the process due to an issue at one of the REIT’s key suppliers, but now that this has been resolved, the distribution can be made. We are pleased to inform you that most of the net proceeds will be returned initially. This is expected to take 4 weeks. Another small distribution may be made subsequently, as the Joint Liquidators will need to retain certain funds to pay final costs incurred while the company is being wound up.

We have already begun the process of validating each investor’s payment details, so please keep an eye out for an email from us.

Regional Capitals fund

As of 09/08/23, we have 66 properties (52% of the portfolio) sold or under offer for a total sales value of c. £10.6m. There are an additional 14 individual units on the market and 41 units where remediation works are currently underway or waiting to begin which prevents them from being marketed.

Remediation work across the country continues to be delayed by regulation and supplier availability across the entire market. An investigation by The Times recently showed that 91% of unsafe flats are not yet fixed, impacting over 600,000 people - the fund’s properties are being fixed at a faster rate than the market at large.

Due to the pace of remediation works, the Regional Capitals fund is unlikely to make a distribution to shareholders until 2024.

The Government has introduced a number of mechanisms to protect leaseholders from fire safety costs, such as the Developer Remediation Contract and the Building Safety Act that significantly increased the limitation periods for claims against developers. We are looking to use these where possible. As part of this, we are involved in ongoing litigation but are not able to share details at this time so as not to prejudice proceedings. We will let you know progress on this when we are able to do so.