WELCOME STATEMENT
COMPANY STRATEGY
BOARD
EXECUTIVES
CORPORATE DIRECTORY
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The significant deterioration in financial and property markets over the past 12 months has required Folkestone to re-assess its strategic direction. The market has particularly changed for property developers in terms of access to debt capital and joint ventures.
The combination of tightening credit markets and a very small capital base has restricted Folkestone's ability to build a diversified portfolio of development projects capable of delivering consistent earnings for shareholders.
The Board has therefore undertaken a detailed review of the company's strategic direction over the past few months in conjunction with external advisors.
Folkestone believes demand exists within the listed investment market for a mid scale, lowly geared property company which provides shareholders with reliable and transparent earnings and distributions. Folkestone is focused on transitioning from pure property development and construction activities to become a company with these attributes over the next 12 months.
Following the review, it has been determined that the strategic direction of Folkestone will be to:
- Lock in inherent value of existing assets by:
- Ensuring that the company has an equity base sufficient to meet its commitments under existing projects;
- Undertaking an orderly sell through of existing development projects in a manner and a timeframe which retains and maximizes the value of Folkestone's investments;
- Transition into a mid-scale, lowly geared property company which provides shareholders with reliable and transparent earnings in an orderly fashion over the next 12 months enabling the company to;
- Increase its scale so that it can attract Institutional Investors and ensure that shareholder returns are not eroded through corporate costs. this is likely to be achieved through merger with or integration of existing portfolio; and
- Position the company with a portfolio of income producing property assets
To the extent that it does not re-invest capital released from the realisation of development assets into new assets –distribute the returns or buy back capital as appropriate.
In working through and realising its existing developments in an orderly manner, Folkestone will position itself to achieve incremental returns should property markets recover further during this period and to take advantage of opportunistic acquisitions as they present.
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