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Investor Update

Investor Update Signature Living Hotel Ltd. (‘Signature Living’ or ‘the Company’) is aware of some negative media coverage regarding delayed…

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4 Dec 2019

Coal Exchange Investor Update

Coal Exchange Investor Update

Firstly, we wish to apologise for the recent lack of updates.

The Coal Exchange Hotel required £3 million of funding to finish the construction works and we have now secured that from our lending partners. Therefore, the building work can now commence, and people will start to see activity on site in earnest.

In terms of the project economics, when the construction is completed, we will owe a combined debt of £22 million against a gross development valuation of £35 million. As you may be aware, a large part of the hotel is already trading and as more bedrooms become available over the coming weeks, we will ultimately reach full practical completion of the property. At that time, we will revalue the Hotel on the basis of being a going concern (fully trading basis) which we would expect to increase the valuation to around £40 million.

Even at the current gross development valuation Signature Living will be able to show a significant profit, and there is more than sufficient equity in the project to repay all investors their full entitlement.

The remaining building works will take some time and we are currently targeting completion in or before May 2020, at which point we can refinance the whole property and repay all outstanding funding. Work on the refinance package has already started in the background and there is also interest in the marketplace from potential buyers of the property. Regardless of whether we refinance or sell the hotel, construction on the site must be completed to realise its full value.

In parallel with the above, Signature Living Hotels is selling some of its other assets which will release liquidity into the company, and as construction at the Coal Exchange progresses over the coming weeks we will establish the repayment process that will take effect after the revaluation as a going concern. We have attached a brochure that provides an up-to-date summary of the key Group assets.

We would like to reassure you that we remain fully committed to meeting our obligations to all investors – as you will see from the brochure, the Group valuations show that we have built significant equity in our estate and we are now endeavouring to expedite the planned exit / sales process for you.

Should you have any questions relating to this letter, please contact

investor.relation@signatureliving.co.uk

Lawrence Kenwright, Chairman