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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

Investor Update


Investor Update

Signature Living Hotel Ltd. (‘Signature Living’ or ‘the Company’) is aware of some negative media coverage regarding delayed payments to some of its investors. We have written to all investors to update them on the progress of the various hotel redevelopments across the Signature Living portfolio. All investors have been reassured that the investment and returns that they are entitled to will be delivered and that we are addressing any delays.

Signature Living is a successful and well-respected company with legitimate aims and a proven business model and it employs over 700 staff nationwide. The Company continues to trade strongly and has underlying equity far in excess of its existing loan agreements. Across our portfolio the combined increase in valuations since initial investment is well over £100m, which we and our investors will all benefit from.

Brexit and Finance

Brexit uncertainty has reduced liquidity in the property development sector, which for us has resulted in delays in securing the necessary finance from banks to buy-out investors from some of our schemes. We are working with a range of lenders and will shortly be able to do this on a recurring basis given our considerable scale and track record.

The Investment

All of our hotels are either completed and trading or are close to completion. Indeed, Signature Living has a strong and enviable track record for the successful redevelopment of derelict sites into high-end hotels. Our investors have comfort that their money is secured by a long lease (up in 125 years) on the buildings which can be registered at the Land Registry.

Signature Living owns the freehold and has a right to buy-back the investors over a 3 – 7 year period. Each investor retains this secured structure throughout the term of their investment and is thereby protected. Signature Living aims to pay quarterly dividends to its leasehold investors as part of this lease structure. We have already successfully completed investor buy-backs in the James Street and Stanley Street Hotels, with investors in James Street making a 50% ROI over a five-year period.

In total, the Company has now paid out in excess of £20 million in returns to investors since 2012. This figure is on top of the original investment that has been returned to investors on exit from development schemes. Indeed, many of our investors have reinvested in subsequent projects, having already made significant returns on our projects.

Signature Living’s investors have their stakes tied-up in various apartment blocks and hotels, all of which have significantly increased in value, based on projected valuations from some of the U.K.’s top valuers. However, due to the uncertainty of Brexit, it is taking longer to secure finance across the property development sector, which is why Signature Living has opted to sell a number of sites in order to return money to investors. These include:

30 James Street

The Shankly Hotel (investors own rooms in this building equating to £15million)

The Wareing

Liverpool Road

And parts of Cavern Walks

We are in discussions with buyers regarding all of these properties which we expect to generate £58m in potential sales, of which some £40m will be allocated to repay investors. We also have a number of sites to place on the market once the above are sold, as well as new development opportunities in the pipeline and strong revenues from our successful hotel operations business.

Signature Living regrets any inconvenience that investors may have experienced through the delay to their repayment or concerns arising from recent negative media reports. We also recognise that we could have communicated the situation more clearly to investors and we are putting steps in place to do so from now on. At no point has their investment been at risk.

We are happy to talk to anyone who has further questions and all Signature Living properties are available to be viewed by investors, should they wish to see how their money is being deployed.

If you have any questions, please contact investor.relation@signatureliving.co.uk

Lawrence Kenwright, Chairman
Signature Living Hotel Ltd.