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Liquidators update February 2018 - Mansion Student Accommodation Fund

Circular to all registered shareholders of The International Mutual Fund PCC Limited Mansion Student Accommodation Fund.

Impacts on
portfolio bonds including:

  • PIMS
  • Select
  • Choice

Please see below an update from the Cell Liquidator with regards to the progress of the liquidation. This is specifically in relation to the two main outstanding issues that they had previously advised in their October 2017 update require resolution before the payment of the final distribution:-

a. Settlement of the Fund’s Tax Positions with HM Revenue & Customs (“HMRC”)

We are pleased to advise that the Fund’s outstanding VAT tax position has been resolved, and the Fund has received a rebate from HMRC of £221,504. This is in addition to the rebates the Fund has received with regards to the Non-Resident Landlord tax positions of the Fund’s 21 SPVs (as advised in our letter of 9 October 2017), which totalled £1.67 million since the appointment of the Cell Liquidator. The Cell Liquidator believes that this settles the Fund’s obligations with HMRC.

b. Post-Termination Reconciliation of accounts with Mansion Property Management Limited (“MPM”) and Mansion Capital Partners Epsilon Limited ( "MCPEL")

As previously advised, the Fund and MPM/MCPEL had agreed to appoint an independent Expert to determine the post-termination reconciliation of accounts for the period from 1 September 2015 to 7 March 2016 (the "15/16 Academic Year"), being the date of termination of the services of the former property manager of the Fund. Submissions on behalf of the Fund and MPM/ MCPEL had been made to the independent Expert for determination pursuant to the terms of the relevant agreements and a final determination was expected to be made by the Expert in the next few months.

However, MPM/MCPEL's legal advisors have now advised that they intend to make an application to Court seeking rectification of the Agreement between the Fund and MPM/MCPEL which specifies how the 15/16 Academic Year should be reconciled. MPM/MCPEL's legal advisors have advised that it is now their belief that this Agreement does not give full effect to the intention of the parties. MPM/MCPEL have a legal right to seek rectification of the Agreement as this process falls outside of the Expert Determination process.

As a result of this election by MPM/MCPEL, the Expert Determination will now be halted pending the outcome of the MPM/MCPEL's Court application.

The Fund's legal advisors have sought further clarification from MPM/ MCPEL's legal advisors in respect of what will form the subject matter of the rectification application and to establish an agreed timetable for the


It remains the case that we are unable to provide further detail for reasons of legal professional privilege but will endeavour to advise further as appropriate and permissible when a response is received from MPM / MCPEL. We will continue to work closely with the Fund's advisors to achieve an acceptable resolution as swiftly as possible.

Once matter (b.) (and any other residual matters) have been successfully concluded, it will take approximately a further three months to conclude the liquidation of the Fund structure and allow a final distribution to be made.

The amount of the final distribution will be based on the remaining balance of the Indicative NAV as at 28 January 2016, after all costs to complete the liquidation of the Fund have been provided for. For the avoidance of doubt, shareholders will not receive all of the remaining 10% of the Indicative NAV because the 10% will have decreased once all final liabilities are settled, as has been previously advised.