Rutley fund receives takeover approaches

Investors are circling listed core-plus vehicle Rutley European Property which said in January it had breached loan to value covenants.

Rutley European Property, a London-listed core-plus property fund, has received a number of takeover approaches.

The vehicle is managed by Rutley Capital Partners, the private equity real estate wing of London-based property services firm Knight Frank. In a statement to the London Stock Exchange, the listed fund said it had received approaches from third parties “which may or may not lead to an offer being made for the entire issued share capital.”

Rutley European Property was established in 2005 and owns around £162 million (€174 million) of assets. Its 10 largest investments are in Germany, Poland, Sweden, and Belgium. The fund currently has around €476 million of debt

The takeover approaches follow a revelation by the fund in January that it had breached loan to value covenant ratios on 8 of 11 special purpose vehicles that own assets.

In a statement released at the time, it said it would be speaking with lenders and also revealed a plan to buy back 10 percent of shares in the company to help narrow the gap between net asset value and share price.

Rutley Capital Partners also manages the Rutley Russia Property Fund.