Warner ‘reliant on support of lenders’

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Warner Estate has said it is still marketing properties to reduce its debt and remains “reliant on the continuing support of its lenders”.

In a trading update this morning, the company said that a number of options were being considered, but any solution would deliver little or no value to shareholders.

“As part of those discussions various options are being considered and examined with other stakeholders of the group, potential investors and advisers,” said the statement. 

“At this stage there is no certainty on which option will be pursued or if any option will be feasible as there are a number of parties, not least the group’s lenders, whose agreement will need to be secured.  

 “As previously announced, the board believes that any solution will deliver little or no value to existing shareholders, other than the opportunity to participate in an equity raise were that to be feasible in the future. 

“Nothing that could deliver a solution to the group’s difficult financial position has been ruled out although the Board’s current view is that an equity raise in the near term is unlikely to be pursued.”

The company revealed in November that its net liabilities had more than doubled to £26.4m.

A decline in total assets under management by £212.4m arose through a combination of sales of £96.7m and valuation falls of £41.2m with the regional shopping centre joint ventures, Agora and Agora Max, suffering most from the recent loss in investor confidence.

Its loans with Royal Bank of Scotland are now being dealt with by Blackstone Real Estate Debt Advisors, which also holds a minority interest in the loans.

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