LONDON, September 28, 2017 /PRNewswire/ --
BCRE - Brack
Capital Real Estate Investments N.V.
("BCRE" or the
"Company")
INTERIM RESULTS
2017
The Board of BCRE - Brack Capital Real Estate Investments N.V.
releases the results of the Company, its subsidiaries and the
Company's interest in associates and joint ventures (together the
"Group") for the six months period ended 30
June 2017 (the "Period") and the publication of its Interim
Report 2017.
Trading update for the Period
- The net asset value ("NAV") of the Group decreased to €226.6
million as at 30 June 2017
(31 December 2016: €254.1 million).
- As at 30 June 2017, the aggregate
value of assets in which the Company is interested (in different
percentages) was €945 million (31 December 2016: €947
million).
- Sale of total holding in Brack Capital Properties N.V. ("BCP")
on 14 June 2017 through an off-market
transaction at a price of NIS345 per
share, for a total consideration of approximately NIS695 million (approximately €174 million). The
net profit from the discontinued operations of BCP amounted to €4.9
million.
- 720 West End Avenue project is being let to the Salvation Army
and serves as a senior housing facility. The building will be
vacated once the replacement facility that is being built on 125th
street is completed, expected by early 2019. As of now, the
demolition of the existing facility on 125th street and excavation
and foundation works for the new building are completed and the
structural steel erection to commence soon.
- At 90 Morton Street, a high end residential development in the
West Village Manhattan, with net sellable area of approximately
90,000 sq ft, the condo offering plan for the project has been
approved by the New York City
attorney general and the development work is progressing apace,
with development approximately 50% complete.
- The Group's position in the Manhattan lodging market with three hotels
continues to advance, as the Indigo Lower East Side hotel is
operational and ramping up, and the 230 room CitizenM Hotel in
Times Square performance is stabilized. The construction of the 300
room CitizenM Hotel at Bowery Street is progressing well and is
scheduled to be completed at the end of the first half year of
2018. The Group ccontinues the efforts for the sale of the hotels
investments.
- The acquisition of 336 multifamily units (c. 334,000 sq ft) in
January 2017 by the BCRE REIT in
Preserve at Sagebrook, in Dayton,
Ohio, brought the multifamily portfolio in Ohio, USA to over 850 units. The performance
of the US multifamily residential portfolio continues to run
steadily with an overall average occupancy of around 95%.
- Despite signs of recovery of the Russian economy, the on-going
contraction in private consumption continues to be challenging. The
Company continues the efforts of stabilizing the Russian platform
as the shopping center in Dmitrov, the logistic warehouse in Lobnia
and Kazan's main retail module are almost fully occupied, whereas
the Lyubertsy shopping center and the two additional modules in
Kazan are still ramping up.
- A total amount of approximately $18.9
million, net of expenses, has been raised under the bond
programme during the first quarter of 2017.
- In May 2017, Midroog, the credit
rating agency accredited by Israel
and a subsidiary of Moody's Investor Service Inc. (Midroog), placed
under credit review with negative implications the rating of
Company's Bonds currently rated A2 on a local Israeli scale with
negative outlook.
- In August 2017, an extension was
obtained until 1 December 2017 for
the completion of the conditions precedent with respect to the
refinancing of the existing bank loan facilities entered into by
subsidiaries/associates of BCRE Russia concerning the four projects
in Russia (Kazan, Lyubertsy,
Lobnia and Dmitrov).
The Interim Report 2017 is now available to view or download
from the Company's website, www.brack-capital.com.
Harin
Thaker, Chairman, said:
I am pleased to report the results of the Group for the first
half of 2017. Despite the fact that the earnings recession has
ended, stock markets have continued to rise more than underlying
earnings, credit spreads have tightened regardless of an underlying
erosion of the credit quality, while high yield spreads have
quickly recovered from the 2015 oil market scare.
Under such an environment and post the sale of the
BCP investment, the Group remains vigilant and
conserves liquidity to deal with
large development projects needs
and potentially improve the Group capital
structure in order to augment value.
Ariel Podrojski, Chief Executive
Officer, said
Following the sale of our investment in BCP, we
continue focusing on the Company's remaining investments,
especially our major projects in Manhattan, New York.
In Russia, despite some recent
macro indicators showing signs of stabilization and recovery,
the conditions continue to be challenging, however we
note improvements in consumer activity.
Forward-looking statements
This report contains certain forward-looking statements with
respect to the financial condition, results of operations and
businesses of BCRE - Brack Capital Real Estate Investments N.V.
These statements involve risk and uncertainty because they relate
to events and depend upon circumstances that will occur in the
future. There are a number of factors that could cause actual
results or developments to differ materially from those expressed
or implied by these forward-looking statements.
On behalf of the Board
Harin
Thaker
Chairman
ENQUIRIES:
BCRE - Brack Capital Real Estate Investments N.V.
Ariel Podrojski, Chief Executive Officer
Nansia Koutsou, Chief Financial Officer / Chief Operating
Officer
+31-20-514-1004
Novella Communications
Tim Robertson
Toby Andrews
+44-203-151-7008
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