Update Pertaining to Sale and Repurchase Contracts (SARP) and Closed Ended Property Portfolio (CEPPs)
Further to all previous information released in respect of the above you will hopefully recall that ARCK LLP began a capital raising exercise via a Corporate Bond some 18 to 24 months ago in respect of financial requirements for its own projects.
You will also hopefully recall that, in August 2009, ARCK LLP recognised the fact, due in the main to the problems caused post the credit crunch of 2008, that some of this capital might be required, subject to agreement by ARCK LLP, for the repurchase of SARPs and possible re-gearing of the CEPPs. A decision to look in more detail at this was then taken in September 2009 and, after consultation with the distribution agents a proposal was put forward causing ARCK LLP to increase its capital raising requirements and activate this in December 2009.
In July 2010 I made a series of presentations to both distribution agents and contract / share and loan note holders alike explaining the position and that, ARCK LLP, whilst it had been successful in fulfilling the majority of funding required, there still remained a shortfall. As a direct result of this a ‘Retail’ offering was brought to the market in early August with an aim of gaining subscriptions of £10 Million, £5 Million of which was the minimum required to settle all contracts in favour of ARCK LLP.
Whilst we have received subscriptions into this offering it has been a slower than anticipated result and, as of today, we still have a requirement of just over £2 Million excluding pipeline business. A lot of this delay has been caused by what appeared to be an abnormally long holiday period through August and a relatively slow return to work in September. Combining this with the time lag involved between presentation to distribution, then onto potential investor, then paperwork submission etc, etc, the target date of the end of September has over run. The actual offer closing date was set at 30th October 2010 but, due to demand, this has been extended on a temporary basis to allow for the collection of funds set for subscription.
The position is very simple: We are a little over £2 million short of subscribed funds to close off the retail offering which will then subsequently allow the Corporate Bond to trade thus providing the facility to move forward towards settlement options. We continue to market and distribute and really require the support of the market place to assist over the next few weeks, if they feel it is obviously the correct investment option for them / their client, so this can be achieved. We do not anticipate this matter being prolonged for much longer and thank those who have supported thus far, and ask a little more support and patience be extended before closure.
As soon as we reach the targeted amount and the Corporate Bond goes to trade we will inform you accordingly.
Kind regards
Richard A Clay
Managing Member
A

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