The last published price for the Brandeaux Student Accommodation Fund prior to suspension was for 31 May 2013. From that point onward Brandeaux has been providing indicative prices only at various points for the underlying fund, enabling Friends Provident International to also only provide an indicative price for the Friends Provident International J99 Brandeaux Student Accommodation Fund (“the J99 Fund”), as indicated in the table below.
Brandeaux has produced an indicative price for the end of August 2014 based on the year-end portfolio valuation.
The prices provided below for the J99 Fund are for indication purposes only, based on the indicative underlying fund Net Asset Value provided to us by Brandeaux, and should not be viewed as a guarantee of the actual value achievable.
The J99 Fund price at which units may be sold is dependent on Brandeaux being able to release liquidity to Friends Provident International. Any instructions received by Friends Provident International to sell units in the J99 Fund will be acknowledged and will be actioned following receipt of liquidity, when it is made available by Brandeaux.
|Price date||Indicative Offer Price (GBP)||Indicative Bid Price (GBP)|
|29 Aug 2014||2.370||2.203|
|30 Apr 2014||2.535||2.357|
|31 Mar 2014||2.538||2.359|
|28 Feb 2014||2.541||2.362|
|31 Jan 2014||2.543||2.364|
|31 Dec 2013||2.546||2.366|
|29 Nov 2013||2.548||2.369|
|31 Oct 2013||2.551||2.371|
|30 Sept 2013||2.556||2.376|
|31 Aug 2013||2.558||2.378|
|31 Jul 2013||2.668||2.480|
|28 Jun 2013||2.671||2.483|
We have received confirmation from Brandeaux on 16 April 2015, that following the sale of the remaining assets owned by the Brandeaux Student Accommodation Fund, a further payment of 4% will be made to shareholders in April 2015.
Friends Provident International has been advised that Brandeaux will retain 1% of shareholdings to cover costs incurred in winding-up the fund. We have concluded that it is not viable to retain what, for many policyholders, will be a negligible unit holding and we intend to close the J99 Fund following receipt of the April payment, rather than waiting to see if any residual payment will be made following completion of the winding-up process by Brandeaux.
Once this April Payment has been received by Friends Provident International, we will close the J99 Fund and distribute the proceeds received from Brandeaux to each investor by switching out all remaining unit holdings from the J99 Fund into L37 Schroder Global Multi-Asset Income (GBP HDG) fund. Further information is detailed in the April 2015 letter to policyholders.
We will maintain details of the unit holdings of all policyholders invested in the J99 Fund as at the date that the April Payment is received. If any final payment is received from Brandeaux upon completion of the winding-up of the underlying fund, this final payment will be allocated pro rata to affected policyholders, subject to the de minimus limits stated in the April 2015 letter to policyholders.
In light of the circumstances, we have considered the options available to us and decided that closure of the J99 Fund at the earliest instance is in the best interests of our policyholders.
A letter will be sent to policyholders invested in the J99 Fund shortly, a copy of which is available via the link below:
J99 Client letter April 2015
Brandeaux announcement 16 April 2015
Should you have any queries in the meantime, please contact your Financial Adviser or e-mail GM-BrandeauxQueries@fpiom.com.
Following Brandeaux’s announcement that they would be releasing approximately 95% of the proceeds from the sale of the underlying assets, we confirm that this payment has now been received by Friends Provident International.
We will now be switching 95% of the existing holdings in the J99 Brandeaux Student Accommodation Fund into L37 Schroder Global Multi-Asset Income (GBP HDG). Investors will be able to switch to an alternative fund of their choice, if they so wish, once this process has been completed.
For those policyholders who have an outstanding instruction with our Claims team, we are now in a position to process those claims.
Should you have any queries in the meantime, please contact your Financial Adviser or e-mail to GM-BrandeauxQueries@fpiom.com.
As you are aware, the Brandeaux Student Accommodation Fund is currently suspended, which has resulted in the J99 Fund also being suspended. Friends Provident International has been monitoring the suspension closely and was informed by the directors of the Brandeaux Student Accommodation Fund on Friday 06 March 2015 that they have concluded a transaction to sell all of the underlying assets in the fund to a third party. A copy of the Brandeaux announcement is available via the link below.
Following the completion of the sale of these assets, Brandeaux's directors intend to undertake an orderly wind-up of the fund. Additionally, we understand that the Brandeaux Student Accommodation Fund will release a significant proportion (approximately 95%) of the net proceeds from the sale of its property portfolio to its investors (which includes the J99 Fund) on a pro rata basis, as soon as possible after completion, rather than waiting for the liquidation of the Brandeaux Student Accommodation Fund to be completed. This is anticipated to take place in late March 2015.
A letter will be sent to policyholders invested in the J99 Fund shortly, together with a Q&A document, copies of which are available via the following links:
As part of our commitment to keep policyholders updated on Brandeaux’s progress towards creating liquidity for the Friends Provident International Brandeaux Student Accommodation Fund (J99) we confirm that no formal announcements have been made by Brandeaux since 19th September 2014.
Brandeaux has informed Friends Provident International that it continues to do everything within its power to reach a satisfactory conclusion for investors in the underlying Brandeaux Student Accommodation Fund.
As soon as Friends Provident International become aware of any developments we will advise policyholders at the earliest opportunity.
Friends Provident International announces today (05 November 2014) that the Annual Management Charge on the J99 Brandeaux Student Accommodation Fund has been waived, with effect from 01 September 2014, for a period of 12 months.
We continue to monitor the situation with the underlying Brandeaux Student Accommodation Fund and we will provide updates as and when further information becomes available.
Friends Provident International has received the following fund update from Brandeaux in relation to their Student Accommodation Fund:
"The directors of Brandeaux Student Accommodation Fund (Sterling) Limited (the “Fund”) continue to actively focus on creating liquidity for investors currently wishing to redeem their investment, in a way that realises appropriate value for the Fund's high quality assets. They continue to monitor the public markets and consider all options to create liquidity, following the decision on 26 June 2014 not to proceed with an Initial Public Offering (“IPO”) at that time.
Since the end of June the Fund has had discussions with a significant number of credible parties who have expressed an interest in acquiring the property portfolio. The Fund and its advisers are continuing to explore these expressions of interest to ascertain whether there is a basis on which to achieve an outright sale of the portfolio at an appropriate value.
The share price of the Fund was suspended in April 2014 due to the uncertainty of the share price following the proposed IPO. Such pricing would have been based on the stock market price of the new public company, rather than on the independent property valuation which Savills carries out in accordance with the Royal Institution of Chartered Surveyors (“RICS”) Valuation Professional Standards. As the IPO did not proceed, Savills has now completed a valuation of the property portfolio as at 31 August 2014 for the Fund's financial year end. The directors consider it appropriate to issue a Fund share price which, based on this latest property valuation and the net profit of the Fund to 31 August 2014, is £2.92 per share compared with the last published share price of £3.11. Resulting share prices for Brandeaux Student Accommodation Fund (Multi Currency) Limited and the Dual Asset Funds are now shown on the Brandeaux website at www.brandeaux.com.
Savills has valued the property portfolio at £1,115.5 million as at 31 August 2014 on a 6.1% net initial yield. This compares with the Savills valuation at 31 August 2013 of £1,187.9 million. This downward movement of £72.4 million or 6.1% during the year has had an 8.2% negative effect on the net asset value of the Fund as a result of gearing. The valuation movement is mainly attributable to three factors, namely a) Savills' opinion that property operating costs assumed for valuation purposes should be increased, although actual property operating costs per bed incurred by the Fund have remained approximately the same year on year, b) an assumption that buyers' costs deducted from the valuation should be based on a sale of property rather than property being sold within a corporate entity which would save the purchaser Stamp Duty Land Tax, and c) the elimination of the portfolio premium, which was previously included to reflect the added value of the portfolio as an integrated business, on the basis that Savills does not believe that market evidence continues to support an explicit premium.
To be clear, the Savills valuation is their opinion of value of the properties determined in accordance with the RICS Valuation Professional Standards of what a willing buyer will pay a willing seller for the properties. In practice, the sale price achieved may be lower or higher than valuation.
Operationally, the portfolio has continued to perform well with currently over 99.5% of the portfolio's 16,827 rooms rented for the 2014/2015 University year at core rental rates 3.3% higher than for 2013/2014. Also summer net rental income (outside the core University year rental period) for the year to 31 August 2014 was £5.4 million against £4.1 million for the previous year, demonstrating the opportunity to continue to grow rental income during the non-core period."
We are in the process of reviewing this latest information from Brandeaux on the underlying fund and how it may impact the J99 Brandeaux Student Accommodation Fund. Once reviewed, we will be able to provide a further update on this news page, and contact policyholders and their advisors with any information relevant to the J99 fund.
We are aware of the press speculation regarding the sale of Liberty Living and have been in contact with Brandeaux today for clarification. They have confirmed to us that this information is inaccurate and a copy of their announcement is available here.
On 19 May 2014, Friends Provident International Limited were informed by Brandeaux of their proposed plans to restructure Brandeaux Student Accommodation Fund (Sterling) Limited (the “Brandeaux Student Accommodation Fund”), the underlying fund into which the J99 Brandeaux Student Accommodation Fund (“the J99 Fund”) invests. The proposed restructuring, if it went ahead, would involve an initial public offering ("IPO") of shares in Liberty Living plc, a newly formed company that would acquire the assets from the underlying Brandeaux Student Accommodation Fund.
We refer to our May 2014 update and letter informing policyholders of the proposed restructuring by Brandeaux. Since then, we understand from a Regulatory News Service ("RNS") announcement released by Liberty Living plc on 26 June 2014 and a subsequent announcement from Brandeaux on 30 June 2014 that the Brandeaux Student Accommodation Fund has decided not to proceed with the IPO at this time.
According to the announcements, this decision has been reached due to adverse public market conditions and despite a positive response to Liberty Living plc and its underlying portfolio from prospective investors.
Additionally Brandeaux has stated:
“The outlook for Liberty Living's business remains very positive, with current reservation levels of 90% for the 2014/2015 academic year, and its operations remain unaffected by the decision not to proceed with an IPO. The management team will continue to focus on driving value on behalf of the existing investors in the Fund, and the Fund will continue to consider all options for creating liquidity for its shareholders.”
The full announcements and a copy of our letter to policyholders invested in the J99 Fund are available via the links below:
Further information will be released as soon as it is forthcoming and until Brandeaux are able to confirm liquidity has been created, the J99 Fund will remain suspended.
Please find attached a copy of a letter that has been sent to policyholders invested in J99 Brandeaux Student Accommodation Fund, following the update from Brandeaux on 19 May 2014.
Friends Provident International is reviewing this latest information from Brandeaux on the underlying fund and how it may impact the J99 Brandeaux Student Accommodation Fund.
We will write to policyholders again as soon as any further information is available.
Although the underlying fund into which the J99 Brandeaux Student Accommodation fund invests remains suspended, Brandeaux made the following announcement on 16 April 2014:
"The directors of Brandeaux Student Accommodation Fund (Sterling) Limited (the “Fund”) are continuing to actively review various options with the aim of creating liquidity for its existing shareholders. The Fund has appointed investment banking and other advisers to assist the directors in assessing these various options to create liquidity.
To give as much flexibility as possible around the various options, the directors of the Fund have applied to the Irish Stock Exchange (the “Exchange”) to delist the Class A Participating Redeemable Preference Shares (the “Shares”) of the Fund from the Official List and from trading on the Main Securities Market of the Exchange. The Exchange has agreed that the Shares will be delisted with effect from 16 April 2014.This delisting does not affect the directors’ ongoing review of various options with the aim of creating liquidity for existing shareholders.
The directors are acutely aware of the difficulties IFAs face in dealing with their clients invested in the Student Accommodation Funds and the inability to give any precise indication of timing on the creation of liquidity. The Student Accommodation Funds and their advisers are working tirelessly to reach the best possible solution for investors and a further statement will be made as and when there is further information of significance to report."
Friends Provident International do not require any of our fund links to maintain a Stock Exchange listing, we therefore do not see this as a significant change or that it will negatively impact the J99 Brandeaux Student Accommodation fund.
We understand from the Brandeaux Directors that de-listing may provide them with more flexibility as they continue to investigate options for raising liquidity for the Fund. We will keep investors in the J99 Brandeaux Student Accommodation fund updated on developments as and when they are announced by Brandeaux.
Friends Provident International received the following update from Brandeaux on 21st February 2014, relating to the underlying fund into which J99 Brandeaux Student Accommodation invests:
Further to the recent press speculation, the Brandeaux Student Accommodation Fund (Sterling) Limited and the Brandeaux Student Accommodation Fund (Multi Currency) Limited confirm that they are continuing to actively review various options with the aim of creating liquidity for their existing shareholders. The options being considered include a potential initial public offering of the assets of the Brandeaux Student Accommodation Fund (Sterling) Limited. The consideration of an initial public offering is at an early stage and there is no certainty at this time that this option will be pursued.
A further statement will be made as and when appropriate.”
As soon as any further update is provided, we will update this site accordingly.
Brandeaux continue to explore solutions to release liquidity, however at the current time there are no further updates available. Please be assured that we remain in regular contact with Brandeaux and we will provide information as and when it is available.
If you have any questions regarding your policy with us, please contact our Customer Services team or if you require further information on the above funds, please contact ourInternational Funds & Investments Department who will be happy to help.