DREF Duet Real Est

TIDMDREF

RNS Number : 3640L

Duet Real Estate Finance Limited

08 January 2016

8 January 2016

Duet Real Estate Finance Limited

("DREF" or the "Company")

Return of Capital and Buyback Programme

Return of Capital

As announced on 5 January 2016, the Master Fund has fully realised its German Hotels investment (Loan 12) following the sale of the portfolio underlying that investment. The Company's share of proceeds from Loan 12 was GBP10.98 million, equivalent to 15.29 pence per share.

Consequently, the Board announces today that it has resolved to return an amount of 14.93 pence per share, based on the current number of shares in issue, being GBP10.72 million in total, after retaining a reserve of GBP6,200 for the costs of this distribution along with amounts to be withheld for working capital and for any continuing purchases of the Company's own shares under the Buyback Programme. This return of capital will be done via an issue of redeemable B shares to existing shareholders and subsequent redemption of those shares pro rata to their holding at the time of the relevant issue.

The return of capital will be paid to shareholders on the register at the close of business on 22 January 2016 (the "Record Date"). The ex-date will be 21 January 2016. The B shares will be issued on 26 January 2016 (the "Issue Date"), redeemed on 27 January 2016 (the "Redemption Date") and settlement is intended to be effected on 28 January 2016. Payments of redemption monies are expected to be made either through CREST (in the case of shares held in uncertificated form) or by cheque (in the case of shares held in certificated form).

Following the return of capital, the NAV per share will be reduced by the amount of the return of capital and the costs of the redemption. Furthermore, the Company may continue to carry out purchases of its own shares from time to time, subject to regulatory restrictions and in accordance with the Company's general authority to repurchase shares granted by its shareholders at the Company's 2015 Annual General Meeting.

The NAV per share as at 30 September 2015 was reported as 27.52 pence. Following the return of capital of 14.93 pence per share, on a pro forma basis but not adjusting for any other movements in the period from 30 September 2015, NAV per share would be 12.59 pence.

The Company raised GBP76.0 million and has paid dividends of GBP19.3 million and returned capital, including via the B share issue above, of approximately GBP60.9 million. A total of GBP80.2 million therefore will have been paid out to shareholders since inception of the Company. The number of shares in issue at 8 January 2016 is 71.8 million. Details of the capital return mechanism are summarised in the Company's Prospectus, which may be accessed via the Company's website (www.dreflimited.com).

Buyback Programme

The Company renewed on 8 January 2016 the authority given to Stifel Nicolaus Europe Limited irrevocably to continue to buy-back shares in the Company on its behalf but independently of, and uninfluenced by, the Company. This enables the buyback to continue during the Company's close period leading up to the announcement of its annual results for the year ended 31 December 2015 as permitted by UKLA Listing Rule 12.2.1(2). The maximum price for the buyback is set at no more than the higher of: (i) 105 per cent. of the average of the middle market quotations, taken from the London Stock Exchange Daily Official List, for the five business days immediately preceding the day on which the shares are purchased and (ii) the amount stipulated by Article 5(1) of the Buy-back and Stabilisation Regulation 2003.

Any shares acquired pursuant to the Buyback Programme will be cancelled or held in treasury and the acquisition will be notified to a Regulatory Information Service in accordance with LR 12.4.6.

For further information, please contact:

   DRC Capital LLP                        +44 (0)20 7042 0600 

Dale Lattanzio

Cyrus Korat

   Stifel Nicolaus Europe Limited     +44 (0)20 7710 7600 

Neil Winward

Mark Bloomfield

Tunga Chigovanyika

This information is provided by RNS

The company news service from the London Stock Exchange

END

MSCDMGGMNRZGVZM

(END) Dow Jones Newswires

January 08, 2016 12:43 ET (17:43 GMT)

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