We are pleased to report that we have closed the acquisition of a senior loan in partnership with Development Securities. Given there are various confidentiality issues associated to this, I will simply quote the stock exchange announcement that Development Securities made this morning. We will tell you more as and when appropriate.

“Development Securities announces acquisition of property backed senior loan for approximately 
£10.0 million

Development Securities, in conjunction with Ellandi LLP (’Ellandi’), announces the acquisition of a senior loan secured on a neighbourhood shopping centre in South West England. The loan was acquired at a significant discount from a leading UK high street banking group. Development Securities have invested approximately £10.0 million in the transaction and own 100% of the loan at closing. The loan is currently performing and interest payments are being met by the borrower in full. The Company will initially receive a yield in excess of 10% per annum in relation to the investment.

Notwithstanding its performance, the loan is presently subject to a loan to value covenant breach which has precipitated the decision for the UK banking group to dispose of the loan.  The acquisition was financed out of the proceeds of the Company’s recent equity fund raising, completed in July 2009.

Development Securities consider the loan to be well secured and given the discounted purchase price, offers numerous potential management options. Due to confidentiality constraints, the Company is not able to provide further information at this stage but hope to make further announcements in due course.

Ellandi is a specialist investment manager focused on UK commercial property. Ellandi specialises in acquiring property related debt, recapitalising distressed property situations and investing in direct real estate. Subject to the future performance of the investment, Ellandi may receive a carried interest as part of the management arrangements.”

We are continuously asked, what does Ellandi mean? So I thought I would finally dispel the myth that it has anything to do with Leeds United.

In searching for a name we decided to go for something metaphorical. Poncey, pretentious, pointless - guilty as charged. Yet, surely better than being yet another property company called London & Something?

So, we were about to launch a business focused on property and finance into the middle of a credit crisis and a property crash. A harsh, inhospitable and even hostile environment for any fledgling business.

Yet nature shows that there is a continuous process of succession, adaption and survival. Where an environment changes and the dominant species dies it is rapidly replaced by new species, who can adapt to the environment, put down routes, grow and prosper.

One such species is the Indian Jujube Tree or the ‘Ellandi’ as it is known in Tamil and Malayalam (languages of Southern India.) This tree is an important tree in the dry regions. It has learnt to grow rapidly on poor dry soil, where little else survives.

Having grown the Ellandi provides well for the local population. It generates fruit for human consumption, animals will garise on its leaves and its timber is used for both construction and fuel. The Ellandi also has medicinal value being used to counter infection, nausea and even syphilis.

We hope that our business will mirror the humble Ellandi in many ways. Putting down routes in a harsh environment, growing quickly and delivering a bountiful harvest. Obviously keeping us syphilis free will be an added bonus.