TIDMBCRE
RNS Number : 0657S
Brack Capital Real Estate Inv N.V
28 September 2017
28 September 2017
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
EUR226.6 million as at 30 June 2017 (31 December 2016: EUR254.1
million).
-- As at 30 June 2017, the aggregate value of assets in which
the Company is interested (in different percentages) was EUR945
million (31 December 2016: EUR947 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 EUR174 million). The
net profit from the discontinued operations of BCP amounted to
EUR4.9 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.
ENQUIRIES:
BCRE - Brack Capital Real Estate
Investments N.V.
Ariel Podrojski, Chief Executive
Officer
Nansia Koutsou, Chief Financial +31 20 514
Officer / Chief Operating Officer 1004
Novella Communications
Tim Robertson
+44 203 151
Toby Andrews 7008
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
This information is provided by RNS
The company news service from the London Stock Exchange
END
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