DGAP-Ad hoc: Holmes Investment Properties PLC

Holmes Investment Properties Plc to launch Hybrid Bond to raise EUR5 million

Holmes Investment Properties Ltd (HIP), the leisure and adventure park developer, have completed plans to launch a Hybrid bond that aims to raise EUR5 million to build its first leisure centres in the UK.

Holmes Investment Properties Plc is a UK-based property investment company that works with high-quality leisure operators for whom it sources, funds and develops plots of land in return for a long-term tenancy commitment.

HIP Plc plans to raise funds through a combination of the issue of new Ordinary Shares in the Company as equity, and through the issue of Loan Notes issued by its subsidiary LP Bonds Plc (LPB). It is intended that the equity raised in HIP Plc is then invested directly into one of its subsidiaries, either UK Adventure Parks, which develops venues for Mr David Lloyd, or HIP Entertainment Properties Limited, which develops land for HIP's other leisure partners.

The Bond would give investors the flexibility to receive interest over 4 years or shares in the company. The offer is underpinned by a FCA regulated platform that gives investors legal recourse.
Each investment is split as follows:

1) 50% of the investment will be invested directly into the Equity offering of Holmes Investment Properties Plc, at a price of a 10% discount to the Ordinary Shares 'Offered price' in the Market at the market close in Berlin on the date of subscription letter (or the next trading day of the Berlin Bourse), with shares rounded up to the next whole share.

2) 50% of the investment will be in the form of a Loan Note with LPB. LPB is offering a 4-year convertible Loan Note into HIP Plc Ordinary shares. The Loan Note will be convertible into Ordinary Shares in Holmes Investment Properties Plc at the investors option on maturity at a discount to the market price or redeemed in cash. The cash can be paid quarterly at the rate of 7.25% pa, or rolled up and paid at redemption at the rate of 8.25% compounded annually.

Martin Helme, CEO of Holmes Investment Properties said: "HIP have published plans to open twelve active leisure venues over five years and we are ready to sign contracts to purchase or lease a number of pieces of land, subject to planning. This is the most capital-intensive period of the journey, but we have done the hard work and got to the stage where we are ready to develop. Therefore, this is the perfect time for shareholders to invest in our project. We have very well known leisure partners such as Mr David Lloyd and TeamSport, who already have 23 go-karting tracks in the United Kingdom. We are building to order in return for long-term leases, so the risk is lower than speculative developments. Clearly, this will be a great opportunity."

Mr David Lloyd said: "My company is ready to go, I have seen a number of plots of land that I want to see one of my venues on. I am negotiating with landowners and working with town planners to turns our plans into reality. Holmes Investment Properties aim to buy or lease the land and build my venues. I have got more than 30 years' experience in this industry and I know who best to work with. I have looked at the plan behind this Bond and I wholeheartedly support it."

Correction:

In a recent interview, HIP announced that the annual interest rate on the Loan Note was 7.5%. The correct figure is 7.25% per annum.

Risk Warning:

Short-Term Investment: The Company's Ordinary Shares are intended for Capital Growth and therefore may not be suitable as a short-term investment. Investors may therefore not realise their original investment at all, or within the timeframe they had originally anticipated.

Investment Values Can Decrease: Potential Investors should be aware that the value of an investment in the Company may go down as well as up depending upon market forces, technical performance and timelines. The market price of the Ordinary Shares may not reflect the underlying value of the Company. There can be no guarantee that the value of an investment in the Company will increase. Investors may therefore realise less than, or lose all of, their investment.

Notes - To invest in Holmes Investment Properties, please visit: https://ipsuminvest.uk/holmes-investment-properties/

Contact:

Martin Helme, Chief Executive Officer
+44 (0)7779 601541 or +44 (0)203 709 7120
Martin@hip-prop.co.uk

Murray Harkin, The Lyndon Agency
+44 (0)77852 54639
Murray@thelyndonagency.com

ENDS