The Lyons Corporate Lease Fund Limited - Nature Of
Corporate Lease Fund
(Incorporated in the Republic of South Africa)
(Registration number 2000/009285/06)
www.lyons.co.za
Share code:LYS
ISIN code: ZAE000024709
NATURE OF BUSINESS OF LYONS CORPORATE LEASE FUND
The Lyons Corporate Lease Fund Limited (LCLF), is the brainchild of Lyons
Asset Management, a subsidiary of the listed financial services company
Lyons Financial Solutions Holdings Limited. It was created approximately 18
months ago to "warehouse" and "incubate" its corporate client's real estate.
By instituting its international best practice model, the Lyons team would
convert the client's freehold real estate assets into leasehold assets,
thereby freeing up capital and acquiring newfound flexibility. The assets
are acquired by the Lyons Corporate Lease Fund at arms length from the
client on a sale and leaseback arrangement. An asset management agreement is
entered into between the client and Lyons to ensure that the property
industry's demands are brought into line with the client's strategic and
operational goals.
The properties are funded through bank borrowings with limited recourse to
the fund as well as equity investment from 3rd party investors in the
capital markets. In return for the funding investors are rewarded with good
quality, long term, and professionally managed, high yielding corporate
returns.
NATURE OF BUSINESS OF CAPE OF GOOD HOPE BANK
Cape of Good Hope Bank, a member of the Nedcor Group and the oldest bank in
South Africa, operates nationally with a niche focus on Property Finance,
Asset Based Finance and Treasury Activities. It was recently rated by Fitch
IBCA SA (Pty) Limited as an A1 Banking Institution.
TRANSACTION
The Lyons Corporate Lease Fund has raised R30.0 Million in a combination of
equity and debt funding, Cape of Good Hope Bank Limited will act as an
investment bank in the transaction. The investment from Cape of Good Hope
Bank Limited enables the fund to grow without reducing liquidity and in
return the fund provides a diversified income return with exceptional credit
qualities.
PROSPECTS
The fund has grown considerably over the last year and this new investment
will allow the fund to grow total assets to in excess of R750.0 Million.
Lyons currently manages R3.0 Billion of assets for its corporate clients, of
which R900.0 Million is freehold ownership in the client's books. It is
estimated that with the current clientele of Lyons, the fund could grow
comfortably to over R2.0 Billion by second quarter next year. The market for
enhanced corporate debt is growing in South Africa and the Lyons Corporate
Lease Fund is well positioned to provide investors with such a product. The
Lyons Corporate Lease Fund board are at present investigating the benefits
of pursuing a listing of these financial instruments either on the
Johannesburg Securities Exchange or the Bond Exchange of South Africa.
BOARD APPOINTMENTS
A member of the Cape of Good Hope Bank Limited executive will take up an
active non-executive position on the Board of Directors of the Lyons
Corporate Lease Fund.
FOR LYONS CORPORATE LEASE FUND LIMITED
FOR CAPE OF GOOD HOPE BANK LIMITED
Garry Fromentin
chief executive lclfl
Ian Hewett
chief financial officer lclfl
Mike Thompson
chief executive coghb
Chris Vietri
chief operating officer coghb
ASSET MANAGERS
LYONS ASSET MANAGEMENT
INVESTMENT BANKER, SENIOR DEBT HOLDER
Cape of Good Hope Bank
CORPORATE LAWYERS AND ADVISORS
LYONS CORPORATE SERVICES
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