Merlin Secure Yielding Care
Home Fund
Investor Update January 2013
A sub-fund of the Falcon Investment
Property SICAV PLC
Date
Nav
Per share (€)
RTN
Launch
1,234
Dec ‘10
1,521
23.30%
Jun ‘11
2,150
74.30%
Dec ‘11
2,147
74.00%
Jun ‘12
1,802
46.10%
Oct ‘12
2,084
68.90%
-
This publication is directed solely at professional investors and not retail clients
Growth of 68.9% since launch based on Net
Asset Value per share
Investment Objective
Merlin is a distributing fund investing in the provision of residential care facilities in the
UK and Europe and working in partnership with award-winning and expanding care
providers. The fund targets the acquisition and development of purpose built care facilities
with secure long-term rental covenants.
While the fund will seek to acquire properties at below-market-value the primary intention
NAV per
share(€)
3,000
2,000
1,000
0
is to find secure incomes that will service debt and produce income to the fund, which can
be used to distribute dividend to investors at the directors’ discretion.
It is the medium term objective of the directors to build a yielding portfolio that will be
suitable for a listing on a secondary market such as AIM or the LSE.
Acquisitions
Property
Beds
Occupancy
Bedmar
Utrera
Chiclana
58
150
120
93%
84%
90%
“The fund has performed
profitably throughout its
term and continues to do so.
Care should be taken when
viewing the fund valuation
due to the fluctuation of the
Euro. “
….. Brad Lincoln
Fund Director
Update
As published in the audited annual accounts
presented to the CISX in November of this year,
the Net Asset Value per share of the Fund
increased by 46.1% compared over that at launch.
In the next quarter a further growth up to 68.9%
was recorded.
The Directors believe this
demonstrates the sense in the acquisition strategy.
The fund was bought when the Spanish market
had hit the bottom, and with the market having
adjusted, it has been re-assessed based on yield
payments, resulting in a significant gain for
investors. In 2012 the accounts showed the fund
has operated according to expectations, although
there has been some effect from the currency
fluctuations. The fund has acquired a new care
home, Chiclana, which strengthens its portfolio.
The NAV per share price at 30 September 2012
was 1689GBP, which reflects the improving
exchange rate.
The fund has been opened for a number of new
investors.
To view the full accounts update, visit:
http://www.cisx.com/listedsecuritynewsitems.php
?companyID=3375
Market conditions
The Bedmar Care Home
The Utrera Care Home
The UK media continues to report the high
demand for elderly care in the UK and Europe
and research analysts claim that places in care
homes will need to increase by 82% over the next
20 years if the UK is to keep up with the rising
number of over-85s in the country.
Along with the new acquisition in Spain, the
Directors have been investigating several
opportunities to expand the fund portfolio with
properties in both Spain and the UK currently
under consideration.
Advisers
Administrator – Heritage International Fund
Managers Limited
Property Adviser – DevCo Limited (Guernsey)
Auditors – Grant Thornton LLP
Tax Advisers – KPMG Channel Islands Ltd
The Chiclana Region
2
Status
Acquired
Acquired
Acquired
Key Facts
Launch date – 28th May 2010
Minimum Subscription - £10,000
The Fund is authorized and regulated by the
Maltese Financial Services Authority
Contact:
info@bestinternational.co.uk
+44 (0) 845 130 9022
IMPORTANT DISCLAIMER
Past performance is not an indicator of future results.
This publication is for private circulation and for
information purposes only and does not constitute a
personal recommendation or investment advice or
offer to buy/sell or an invitation to buy/sell securities
in any Fund. The information and opinions have been
obtained from or are based on sources believed to be
reliable but cannot be guaranteed. No responsibility
can be accepted for any loss arising from the use of
this information.