Blue Sky Announces Business Review Outcomes

Summary

  • Comprehensive review of Blue Sky business and balance sheet substantially completed.
  • Completion of phase two (of three) of the independent review of asset valuations with the remainder expected to be completed by 30 June 2018.
  • Continuing focus on three core businesses: Private Equity; Private Real Estate and Real Assets.
  • Closure of domestic hedge fund business as previously announced and progressive exit from property management rights and regional real estate development.
  • Decision to terminate three retirement living projects following recent changes to planning regulations and one student accommodation project. One other student accommodation project deferred and one under strategic review.
  • Fee-Earning Assets Under Management (‘FEAUM’) of $3.4 billion as at 31 May 2018, on a consistent basis with prior disclosure, adjusted for decisions made to terminate retirement living and student accommodation projects referred to above. New capital deployed on behalf of institutional mandates in real assets and three new private equity funds launched.
  • Initial $3.8 million of cost reduction initiatives implemented and path confirmed to align Blue Sky’s fixed cost base with recurring management fees.
  • Estimated, unaudited, $59.4 million negative impact on FY18 NPAT:
    • ($6.8 million) phase one valuation adjustments (announced 15 May 2018) and $0.7M phase two valuation adjustments (given the assets involved, no material impact is expected from final tranche of valuations);
    • ($16.4 million) revaluation of the Blue Sky management platforms in Australian student accommodation and retirement living;
    • ($21.5 million) in balance sheet write-downs including impairments of loans, balance sheet investments and recording of other specific provisions associated with legacy investments in Australian residential developments and private equity funds;
    • ($11.4 million) in net costs associated with terminating, deferral and/or review of Australian retirement living and student accommodation projects; and
    • ($4.0 million) due to the restructure and associated costs expected to be incurred in FY18.
  • Forecast net cash position of $32.3 million at 30 June 2018.
  • Pro-forma Net Tangible Assets (‘NTA’) of $160.0 million at 30 June 2018 incorporating a $13.8 million expected impact from the adoption of AASB 15. This represents a pro-forma NTA per share of $2.06.
  • The Blue Sky Alternatives Access Fund May pre-tax NTA of $1.13 per share confirmed today, an increase of 2.0% since 30 April 2018.
  • Key appointment of Independent Chair of AFSL holder and trustee company Blue Sky Private Equity Limited and confirmation of external searches for a permanent Managing Director, Non Executive Directors and a Chief Risk Officer.

Click here to read further information in the full ASX Release.

For more information, please contact:

Leyya Taylor
Company Secretary
Blue Sky Alternative Investments Limited
Telephone: 07 3270 7500
Email: ltaylor@blueskyfunds.com.au
Website: blueskyfunds.com.au

 For shareholder enquiries, please contact:
Neil Power
Shareholder Relations Officer
Blue Sky Alternative Investments Limited
Telephone: 0416 186 016
Email: npower@blueskyfunds.com.au

For media enquiries, please contact:
Emily Blyth
Telephone: 0401 601 044
Email: emily.blyth@consiglio.com.au