LONDON, January 31, 2017 /PRNewswire/ --
This announcement contains inside
information within the meaning of the Market Abuse Regulation (EU)
(No 596/2014).
BCRE - Brack Capital Real Estate
Investments N.V.
("BCRE" or the "Company")
Deconsolidation of Brack Capital Properties N.V.
As announced on 28 September 2016,
the Company sold 420,809 shares of Brack Capital Properties N.V.
("BCP"), whose shares are traded on the Tel Aviv Stock
Exchange, through an off-market transaction at a price of
NIS 324 per share and for a total
consideration of NIS 136,342,116
(approximately EUR 32.4 million).
This transaction reduced the Company's holding in the issued share
capital of BCP to 28.31%.
Due to the reduction of the Company's shareholding in BCP and
after careful consideration, the Company has now reached the
conclusion that, it no longer has control over BCP and therefore
will not consolidate the financial position of BCP starting from
28 September 2016
("Deconsolidation date"). This conclusion is also supported
by the recent receipt of an indication that changes to the voting
arrangement in respect of BCP, to which the Company is a party,
will be made and the further reduction of the Company's
shareholding in BCP to approximately 26.33% (non-fully diluted
basis) due to the share issuance as announced by BCP today. It
should be further noted, that to the best knowledge of the Company,
the aforesaid deconsolidation is not expected to have an effect on
the classification of the controlling shareholders of BCP, in
accordance with the applicable Israeli securities law, 1968.
From the Deconsolidation date the investment in BCP will be
accounted for using the equity method. The financial results of BCP
will be consolidated, for the financial year ended 31 December 2016, up to the Deconsolidation date
and subsequently will be accounted for under the equity method. The
estimated gain (net of transaction costs) from the sale of BCP
shares and the revaluation of the remaining investment in BCP to
fair value upon loss of control is approximately between
EUR 47 million to EUR 57 million
(unaudited). In addition, the estimated decrease in the total
assets and total liabilities of the Company will be approximately
between 53% to 58% and between 58% to 63% respectively (unaudited),
compared to the Company's total assets and total liabilities as of
30 June 2016.
The deconsolidation does not impact the compliance by the
Company with any covenants under its various loan agreements.
The Company will publish its Annual
Report for 2016 in due course.
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
About BCRE
BCRE is an international real estate development and investment
group, headquartered in the
Netherlands and listed on the London Stock Exchange. Through
its subsidiary and associated undertakings, the Company is
interested in, develops and operates an international portfolio of
real estate assets, predominantly located in the USA, Germany
and Russia.
The Company has established local management team platforms with
significant local market expertise in the US, Germany, Russia, India
and the UK with exclusive access to over 550 staff. At present, the
Company has offices and teams in New
York, London, Frankfurt, Düsseldorf, Moscow, Kazan, New
Delhi, Amsterdam and
Limassol.
This is a disclosure announcement from PR Newswire.