UACN Property Development Company (UPDC) Plc has been given approval by the Nigerian Stock Exchange (NSE) to list its N4.355 billion bond on the exchange.
The company will be listing the N4.355 billion Series 1 Senior Guaranteed Fixed Rate Bond Due 2023 under its N20 billion Bond Issuance Programme. The listing by way of introduction, will provide bondholders opportunity to trade on their investments and allow new investors to participate in the issue, the Nation reported.
A previous attempt by the debt-ridden company to raise equity funds last year was partly unsuccessful as it was only able to secure half of the funds it sought under the capital raising.
Recall that the company had recently launched a rights issue of 1.719 billion ordinary shares of 50 kobo each to existing shareholders at N3 per share in a bid to raise N5.16 billion, sadly, the company only recorded subscription for 879.65 million ordinary shares valued at N2.64 billion.
The company has continued to battle with heavy debt hanging on its neck largely as a result of a slowdown in real estate market and stock market recession combined to shrink access to long-term capital.
The company paid a total of N2.83 billion as interest expense during the year ended December 31, 2016, which contributed significantly to the company’s net loss of N1.55 billion during the period.
The company recently opted to sell its investment in UPDC Hotels Ltd due to debts estimated at N13.8 billion. The hotel arm owns the Festac 77 Hotels, also known as Golden Tulip Hotels. The hotel reported a revenue of N1.62 billion in 2017, a 20% rise from the N1.2 billion reported a year earlier.
However, losses continued in 2017, as it reported a loss of N293.6 million compared to a loss of N552.2 million in 2016. In 2015, the hotel reported losses of N773 million compared to N160 million in 2014. The Hotels has reported losses since its inception in 2010.
The Q1 2018 financial statement for the period ended 31st March, 2018, the company’s revenue dropped by 61% from N1.56 billion in Q1 2017 to N600 million in Q1 2018.
From the company’s posted its financial statements for the full year ended December 31, 2017, its revenue plummeted from ₦4.99 billion recorded in 2016 to ₦3.98 billion in 2017. The loss before tax stood at ₦3.05 billion as against ₦1.23 billion recorded in 2016.
UACN Property Development Plc (UPDC) main business is the acquisition, development, sales, and management of high quality serviced commercial and residential properties in the luxury, premium and classic segments of the real estate market in Nigeria.