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Invesco Property Income trust investors face 100% loss

Nick Paler
Written By:
Nick Paler

Shareholders in the troubled Invesco Property Income trust have been told they are likely to lose their entire investment after it was suspended pending an effective firesale of its assets.

In a stark warning to investors, the trust’s board said in a statement it was being forced to sell-off its assets to repay debtors sooner than expected, with shareholders likely to receive nothing back.

It said it was “virtually certain that there will be no return for shareholders on completion of the Company’s winding up.”

Launched in 2004 and currently run by Rory Morrison, the trust has also been suspended from trading by the FCA following discussions with its lenders.

The trust said discussions with its lending banks had seen it granted a three-month extension to its borrowing facility, which was due to expire at the end of September.

However, the short-term nature of the extension means the trust must now offload its remaining property assets rapidly in order to repay its bank borrowings and liabilities.

It said: “In consequence, the Board and Investment Manager have no option but to accelerate its disposal programme so as to seek purchasers immediately for all the group’s remaining assets.

“The Board and Investment Manager will work with the lending bank and its advisers in marketing the remaining property assets.”

Property assets are one of the hardest investments to sell quickly because of their illiquid nature. A rushed sale will likely see any transactions done at a reduced price, hence the warning from the trust that investors are likely to lose 100% of their investment.