Towards the end of 2017 Trematon invested R72.4 million in ASK, which is based in the United Kingdom. The business provides innovative structured financing to property developers in the UK. This is currently Trematon’s only offshore investment and meets our basic investment criteria based on projected investment returns in British Pounds and is not on any currency view.
ASK’s contribution to group INAV grew 17% in the current financial year. The business is valued at cost plus equity accounted profits and any foreign exchange gains/ losses. The business generated R12.2 million (2017: R0.4 million) profit for the group, which includes a R3.9 million forex gain. By the end of August 2018 ASK had completed 13 deals with a combined loan amount of £45 million (approximately R860 million).
The investment has exceeded initial budgets and projections, both in terms of loans written and syndications and is on track to
achieve our return objectives.