You’ll be pleased to know we are in good company. Buffett is quite the liquidation arbitrageur.

Today’s list includes a few UK investment funds that have been liquidating for a while but are still offering a decent spread to liquidation value.

If the spread of a situation isn’t attractive, I’ve learned to always keep an eye on it. Market volatility might offer a better entry point. LON:MCT and ASX:AOF are examples to watch.

The 3 potential liquidations I’ve profiled I think are quite interesting. One of them has initiated the quickest strategic review since a spin off that I have seen - 2 months. Put them on your watchlist.

I’ve updated 3 situations that I’ve previously mentioned. CVE:SRES looks like it's going to be a nice 20%+ return in less than 6 months.

I hope you are finding value in the watchlists. I keep referring back to the Master PDF I put in the chat for subscribers (free). It helps me when I need to refresh my memory on a certain liquidation.

Crystal Amber Fund (LON:CRS) is a UK small cap investment fund. The fund has been in wind down for the last 3 years. It came on my radar in December 2023 when it was trading at £0.63 (painful). I still think there's some juice left in this one. 90% of NAV is in 2 assets. Its largest is Morphic Medical Inc (MMI), a privately held company in the USA. They have developed a device that is meant to help people who have type 2 diabetes and are overweight or obese. It’s non revenue generating and is looking to gain CE certification so it can commercialise. How this stake gets realised is key to the wind down. An IPO, private sale or scrip dividend could be on the cards. The other main asset is UK listed banknote producer and authenticator De La Rue. After selling the authenticator division, directors recently agreed to a bid for the RemainCo. This will provide a c£40m in gross proceeds which is 50% of market cap. NAV £1.87. Timeframe 2 years.

Weiss Korea Opportunity Fund (LON:WKOF) invests in South Korean preference shares. On 14th April shareholders approved a change of investment policy and wind down strategy. They have long touted the “discount to NAV” (currently 43%) which is the discount NAV would be at if the preference shares were converted to common equity of the same issuer. However I can’t see any evidence of them indicating they will do this. Board has said a first return of capital in June. They also said the liquid portfolio can be realised by June 2027. I’ve estimated about 80% of the portfolio can be liquidated by then. I don’t see the upside here if it takes 3 years to liquidate. Maybe one to watch for a pullback. NAV £1.51. Timeframe 3 years.

Australian Unity Office Fund (ASX:AOF) is an Australian office REIT that has been liquidating and returning funds to shareholders. They recently returned $0.40. Estimated remaining distributions are $0.51. September this year $0.48 comes back and then the final $0.03 after October. This currently trades with a 6% upside, one to put on watchlist if you want a higher return. NAV $0.51. Timeframe 6 months.

Seritage Growth Properties (NYSE:SRG) Sears real estate portfolio spin off. I have mentioned the preferreds in Watchlist 2. In the Master PDF I mentioned I would take a stab at liquidation value for the common equity. I’ve adjusted NAV for 2 years of G&A cash burn and preferred dividends. I don’t see why the preferreds don’t get redeemed in the next year. The company recently mentioned all assets will be on the market in 2025. This has been a graveyard for many value and special situation investors. NAV $3.95 Timeframe 2 years.

Middlefield Canadian Income (LON:MCT) a UK investment fund that invests in Canadian large caps. Last week, pressure from activist investor Saba has led to the company announcing they will convert to an ETF. Shareholders can roll over into the new vehicle, partially roll or take a full cash exit at close to NAV. Circular to be sent to shareholders relating to the transaction in August 2025. Currently pays at 4.5% dividend yield. NAV £1.255. Timeframe 6 months to 1 year.

GCP Asset Backed Income Fund (LON:GABI) is a UK investment fund that provides asset backed loans secured against long term cash flows or physical assets. Wind down approved in May 2024. Majority of loans are to residential housing, care homes and social housing. It appears the UK property market is stabilising. About 23% of the portfolio are “problem loans” which have been written down. It's paying a 9% dividend yield which will reduce as loans are paid back. The board indicated 2027 will be when last assets are realised and capital returned to shareholders. NAV £0.818. Time frame 3 years.

RM Infrastructure Income (LON:RMII) is a UK investment fund that invests in secured debt backed by assets, real estate, plant and machinery and accounts receivables. They have been winding down since December 2023. Debt free with 28% of market cap in cash. The board has indicated they will do a material capital return soon. They’re targeting the end of 2027 for the complete liquidation with the majority of capital return by end of this year. The dividend will be reduced as the portfolio unwinds. NAV £0.843. Timeframe 3 years.

Potential Liquidations

Euroholdings Ltd (NASDAQ:EHLD) owns 2 late 1990s feeder container vessels (box ships). The company was spun off from its parent in March this year. The plan was to act as a consolidator of vintage tonnage which other companies didn’t want (like their parent). After the spin, the stock has dropped from $17 to $5. This has led to the company initiating a strategic review. The review could include a full or partial sale or another corporate transaction. If they were to sell the ships as an asset sale and liquidate, you would receive a liquidation distribution. The company has $13m of cash (87% of market cap) and is debt free. My conservative assumptions are that on the confirmed charters the ships can produce about $3million in EBITDA in the next 18 months. The carrying value of the ships could also be 2-3x higher than book value ($3.3m). This is an interesting play to watch. But be aware of Greek ship owners and shareholder unfriendly practices. NAV $6.05.

abrdn Asia-Pacific Income Fund (TSE:FAP) invests in bonds in the Asia-Pacific region to produce income for investors. Activist investors Almitas hold 17% and Saba have 13% of the company. 50% of units requested redemption at the annual redemption in March. Also in March, shareholders approved a change in the constitution to remove the 10% annual redemption cap which would allow shareholders to tender 100% of their shares. The board has said that if there is a large redemption at the 2026 annual redemption that makes the company no longer viable, they will wind it up. I’d say odds are high this gets liquidated in 2026. NAV $3.14.

Altai Resources (CVE:ATI) is a small Canadian resource company. They own: a oil royalty asset, an interest in a early stage gold development property, cash and marketable securities. Long standing Chairman and major shareholder passed away late last year. His son was then elected as a director and owns 20% of the shares. On 1st May they announced a strategic review with one of the options to liquidate. With a market cap of $3.5m it's hard to see what else they can do. They’re profitable with $4m in cash and marketable securities. One to watch for the strategic review outcome. NAV $0.085.

Previously Mentioned

Sun Residential Real Estate (CVE:SRES) I mentioned them in Watchlist #4. Last week the company confirmed a $0.111 payout in two parts. Majority of proceeds to be paid in June and a final distribution in September. This should turn out to be a nice return since the announcement to liquidate on 1st April.

abrdn Property Income Trust (LON:API) released its AR last week. They were downbeat about what the final distribution would be due to taking longer than expected to sell the final asset- Far Ralia (FR). FR is a difficult asset to sell. The mood around climate change/carbon credits is not as positive as it was a few years ago. The directors said they hope it will be sold by the end of 2025. They have £0.048 in cash which will provide interest income. Concern for me is the reluctance to return some of this cash and how much they will burn while waiting for the sale. NAV £0.08.

Firm Capital Apartment Real Estate (TSE:FCA.UN) released its Q4 report. I’ve mentioned previously management has not given much away in terms of confirming liquidation or progress on the strategic review and nothing has changed in the Q4 report. $20m of debt held against the 2 wholly owned properties is due in February 2026. Both these properties are for sale. I think they should just confirm a liquidation which should reduce the discount to NAV. Since I mentioned it, the stock is up 20% on one of the exchanges it trades on but it’s very illiquid. NAV $6.57.

Conclusion

Let me know what you think?

I’m looking for opportunities everyday. It's good fun.

Disclaimer: The content in this write-up is for informational purposes only and should not be construed as financial or investment advice All opinions expressed are my own. Please do your own research or consult with a professional before making any investment decisions.

Disclosure: I, or members of my family, hold shares in CVE:SRES, TSE:FCA, LON:API and could potentially hold shares in any of the mentioned companies in the future.