ARTO Arteon

 
TIDMARTO 
 
Arteon PLC / Index: AIM / Epic: ARTO 
 
                    Arteon PLC (`Arteon' or `the Company') 
 
                         Appointment as Asset Manager 
 
28 January 2010 
 
The board of the Company announces that Arteon has agreed heads of terms with a 
recently incorporated Isle of Man property company (`IOMCO') to provide it with 
asset management services (the `Agreement'). Arteon will provide the asset 
management services through a newly formed subsidiary. 
 
In a two phased process, initially IOMCO is seeking to raise sufficient equity 
to acquire pre let German residential property assets of up to Euro 30 million, 
with the second phase acquiring property assets of up to Euro 100 million. 
IOMCO will seek to leverage itself to optimise returns. 
 
IOMCO commenced fund raising on 11 January 2010 and has secured conditional and 
unconditional equity commitments to date which, provided that conditions are 
satisfied, would allow it to acquire up to Euro 10 million of assets, assuming 
leverage can be obtained. 
 
The Agreement provides that Arteon will receive:- 
 
  * an annual fee of 0.6 per cent. of gross assets under management subject to 
    a minimum monthly fee of Euro 1,000; and 
 
  * an asset acquisition fee of 0.6 per cent of gross assets acquired, payable 
    on acquisition. 
 
Fees will only become payable to Arteon in the event that IOMCO unconditionally 
reaches its minimum subscription level, at which time the Company will make a 
further announcement. 
 
Arteon is in negotiations with a number of vendors of suitable German 
residential property assets that would meet IOMCO criteria of proving an 
initial yield on purchase of between 9 to 11 per cent. 
 
Arteon will use the Company's recently licensed Orchos platform (see 
announcement made by the Company on 27 October 2009) to report and manage the 
underlying assets of IOMCO. 
 
Peter Hagerty, Chairman of Arteon, stated: "We are delighted to be able to 
announce this engagement which represents the first commercial exploitation of 
our new platform. This vehicle is focused on delivering an attractive level of 
income to its investors within the highly transparent reporting framework 
offered by the Orchos platform. Importantly, it will serve as a valuable 
showcase as we set out to enable similar investment vehicles in the near 
future." 
 
                                  ** ENDS ** 
 
For further information visit www.arteonplc.com or contact: 
 
Peter Hagerty             Arteon PLC                   Tel: +44 (0)20 7148 7700 
 
Gavin Burnell             Astaire Securities PLC       Tel: +44 (0)20 7448 4400 
 
Isabel Crossley           St Brides Media & Finance    Tel: +44 (0)20 7236 1177 
                          Ltd 
 
Paul Youens               St Brides Media & Finance    Tel: +44 (0)20 7236 1177 
                          Ltd 
 
 
 
END 
 

Arteon (LSE:ARTO)
Historical Stock Chart
Von Mai 2024 bis Jun 2024

Arteon (LSE:ARTO)
Historical Stock Chart
Von Jun 2023 bis Jun 2024