We are writing to update you on the sale of properties owned by the Regional Capitals fund and the liquidation of the London fund.
London Fund Final Payments
We have paid proceeds to 80% of investors following the liquidation of the fund and continue to work through processing the remaining proceeds as quickly as possible. If you haven’t already completed our email request for payment details, please respond to the email you received from us, called Bricklane London distributions - payment details. This will enable your payment to be processed as quickly as possible. We need different details depending on investment type, so personalised forms have been emailed to all investors.
Regional Capitals Fund Summary
We are working to pay funds to investors as quickly as possible.
Progress is continuing on progressing the funding and completion of fire safety works, but this remains slower than we would like. In the meantime, we have been able to sell some assets which are undergoing works, or awaiting for works to start, and will continue to sell these where possible.
Regional Capitals: Property Sales
As at 19 June, out of an initial 127 properties in the portfolio:
70 properties (55%) have been sold
11 properties (9%) are under offer or exchanged
7 properties (6%) are on the market
3 properties (2%) are queued up for marketing (behind identical assets which need to go under offer first)
36 properties (28%) where remediation works are currently underway or waiting to begin - per the above, sales will be pursued opportunistically where possible
To date, most of the sale proceeds have been used to repay bank debt and fund fire safety works.
Regional Capitals Fund: Fire Safety Works
There has been recent news on some buildings that all or part of remediation costs will be covered by the Government, or the building’s developer. This has reduced the total cost estimate from £1.65m in December 2023 to £1.47m today, of which c. £900k has already been paid. We anticipate that this estimate will fall further as we receive confirmation of funding for several buildings.
Alongside we remain involved in ongoing litigation aimed at recouping the cost of certain fire safety remediation works but are not able to share details at this time so as not to prejudice proceedings.
We are committed to returning funds to investors as soon as possible, and are pursuing all avenues to do so.