From 1 February 2023, if properties are retained on LHX through their respective 5-year anniversary processes, it will be the last time a 5-year anniversary process is run on those properties.
A new annual process will replace the 5-year cycle, timed to coincide with our independent revaluations at 31 March each year.
What form will this new process take?
The new annual process will be a simple shareholder vote (hold vs sell) on whether to sell the property, with the outcome determined by a majority of voted shares.
Will properties with a scheduled 5-year anniversary date still undertake the same process?
Yes. All upcoming 5-year anniversary processes will run as planned, using the current process. The new annual shareholder vote will come into effect only for properties that shareholders have determined will remain on LHX after their next 5-year anniversary process.
Why are you making this change?
This change is the result of extensive feedback from our investor base, who have observed properties being determined for sale due to small minorities of investors with a preference for liquidating their holdings in the short term, rather than seeking better returns in the medium-to-long term; this has resulted in lower returns on disposals than the majority of shareholders believe was reasonably possible.
What are the benefits?
The benefits of the new process include:
(i) a vote every year rather than only once every 5 years
(ii) property sales will be determined by the majority rather than a potential minority of voted shares
(iii) a vote which is timed alongside an up-to-date valuation from an independent RICS-accredited surveyor
When will this new process come into effect?
The first votes under this new process will be on 31 March 2024 following the announcement of a given property's independent revaluation - see each property’s Investment Case or your Dashboard for an exact date on a property-by-property basis.
What if I want to exit my investment outside of this annual process?
Shareholders in every property which has not been determined for sale, will continue to be able to sell their holdings at any time on the LHX trading Exchange. We believe the new annual shareholder vote and removal of the legacy 5-year anniversary process should encourage engagement with the Exchange, a powerful and unique feature of LHX.
Are there any changes to the terms and conditions?
An amendment will be required to the Shareholders Agreement for properties which are retained on LHX, to remove provisions relating to the 5-year anniversary process and allow for the new annual process. The Deed of Amendment to the Shareholders Agreement specific to this SPV will be available on the property’s investment page within the Documents section. This amendment will only become effective if shareholders determine that a property will remain on LHX and requires no separate action from shareholders.
Any other questions?
Please get in touch with us via email@example.com and we will be happy to assist you.