Annual Report 2006 - Tamar European Industrial Fund

Company Summary
The Company
The Company is a limited liability, closed-ended, Guernsey registered investment company. Its shares
are listed on the Official List of the UK Listing Authority and traded on the London Stock Exchange. It was
incorporated on 25 August 2006 and its shares were admitted to listing on 25 September 2006.
At 31 December 2006 total assets less current liabilities were £315 million and shareholders’ funds were
£140 million.
Objective
The investment objective of the Company is to provide Ordinary Shareholders with an attractive level
of income together with the potential for income and capital growth. Its investment policy is to focus on
investments in industrial real estate assets primarily across Western and Northern European jurisdictions
(but with no investments being made in the United Kingdom). The Investment Manager expects the
investments will be made primarily in France, Benelux, Germany, Italy, Iberia and Scandinavia.
Management
At launch the Board appointed Kenmore Financial Services Limited as Investment Managers.
The investment management agreement appointing them is for an initial three year period ending on
25 September 2009 and, with effect from that date, may be terminated by either party by giving not less
than 12 months’ notice. Further details of the investment management agreement are provided in the
Notes to the Accounts.
Capital Structure
At admission on 25 September 2006, the Company had a capital structure comprising 140 million
Ordinary Shares. Ordinary shareholders are entitled to all dividends declared by the Company and to all
the Company’s assets after repayment of liabilities including its borrowings. Borrowings consist of bank
facilities provided by The Royal Bank of Scotland plc, Hypo Real Estate Bank International AG and DnB
NOR Bank ASA, the latter being refinanced with borrowings from Hypo Real Estate Bank International AG
since the period end.
Status
The Company’s shares are eligible for ISAs and PEP transfers and for inclusion within SASS and SIPPS.
Website
The Company’s internet address is: www.kenmoreeifund.com
Financial Highlights
• Share price increased by 12.75 per cent to 112.75 pence at 31 December 2006.
• Adjusted net asset value before deferred tax liabilities per share increased by 9.0 per cent from 95.5
pence at launch to 104.1 pence at 31 December 2006.
• Dividend announced in respect of the period of 1.5 pence per share.
Kenmore European Industrial Fund Limited Share Price from Launch
114
112
110
108
106
104
102
100
25 Sept 31 Oct 30 Nov 31 Dec 06
Reconciliation of net asset value per accounts to adjusted net asset value:
Total Per share
£’000 Pence
Net asset value per accounts 140,409 100.3p
Adjustments:
Deferred tax liabilities (see note 10(a)) 2,583 1.8p
Unrecognised deferred tax adjusted for within initial purchase price consideration 4,845 3.5p
Unrecognised deferred tax contingently adjusted for
within initial purchase price consideration (see note 10(b)) (2,135) (1.5)p
Adjusted net asset value 145,702 104.1p
Reconciliation of net asset value per accounts to adjusted net asset value
after deferred tax liabilities and contingent deferred tax:
Total Per share
£’000 Pence
Net asset value per accounts 140,409 100.3p
Adjustments:
Unrecognised deferred tax liabilities (see note 10(b)) (29,948) (21.4)p
Unrecognised deferred tax adjusted for within initial purchase price consideration 4,845 3.5p
Adjusted net asset value after deferred tax liabilities and contingent deferred tax 115,306 82.4p
The above adjusted net asset values (‘NAV’) are based on the NAV per accounts which is calculated in accordance with International
Financial Reporting Standards issued by, or adopted by, the International Accounting Standards Board (the ‘‘IASB’’) and interpretations
issued by the International Financial Reporting Standards Committee. In order to reconcile these to the published accounts it is
necessary to adjust for those items identified above.
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