By Oliver Smith on Tuesday 31 March 2020
“We continue to believe in the long term strength, stability and attraction of UK residential property assets," CEO Warren Bath told investors.
Just seven months after incoming CEO Warren Bath launched an ambitious turnaround plan for property marketplace Property Partner, yesterday Bath announced a new package of measures to protect its investors amid market turmoil.
For the next three months all dividends and property sale processes will be suspended, with income accumulating in each property’s bank balance
Part of the challenge is the government’s response to coronavirus, requiring landlords to provide rent holidays and protecting tenants from eviction.
The CEO added that Property Partner is currently seeking a three-month mortgage payment holiday for these properties.
On the student accommodation side of the portfolio Bath warned the situation is “potentially worse”, however Property Partner has already agreed a six-month mortgage holiday with its student accommodation lender.
Since 18 March Property Partner has seen average share prices fall a further five per cent on its resale market, with a steep decline in trading volumes. The market is due to reopen now on 6 April.
“All asset classes in the economy are under severe pressure,” wrote Bath in his letter to investors.
“Equity markets are volatile and have fallen approximately 30 per cent, and dividends from public companies are being heavily reduced or cancelled.
“We continue to believe in the long term strength, stability and attraction of UK residential property assets. Our focus is on the management of our existing portfolio, with the potential to recommence new acquisitions when conditions allow.”