LONDON, April 26, 2018 /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")
FINAL RESULTS 2017, DIRECTORATE CHANGE AND POSTING OF
AGM
The Board of BCRE announces its results for the year ended
31 December 2017 and the publication
of its 2017 Annual Report.
Key highlights for the year ended
31 December 2017 and up to the
publication of the Annual Report
- The net asset value ("NAV") of the Group amounted to €201.7
million as at 31 December 2017
(31 December 2016: €254.1
million).
- As at 31 December 2017, the
aggregate value of total assets in which the Company has a holding
interest in different percentages was approximately €762 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 steel structure of the 125th street building is
almost completed and the mechanical, electrical, plumbing and
façade work is underway.
- Development at 90 Morton Street, a high end residential
development in the West Village Manhattan, is continuing to
progress on schedule and is approximately 70% complete. Marketing
and sales campaign was launched in April
2018 together with the official opening of the on-site sales
office.
- 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, US to over 850 units. The performance of
the US multifamily residential portfolio continues to run steadily
with an overall average occupancy of around 95%.
- On 8 March 2018, the Group signed
a letter of intent with a third party for the sale of the property
owned by BCRE IHG 180 Orchard Holdings LLC which is classified as
held for sale as at 31 December
2017.
- On 27 March 2018, the Group
signed an agreement with its partner for the sale of the Group's
total shareholding in OSIB-BCRE Bowery Street Holdings LLC which is
classified as held for sale as at 31
December 2017.
- The Company continues the efforts of stabilizing the Russian
platform, as the shopping centers in Dmitrov and Lyubertsy, the
logistic warehouse in Lobnia and Kazan's main retail module are
almost fully occupied, whereas the two additional modules in Kazan
are still ramping up and the difficulties in filling them has not
eased.
- On 22 March 2018, the Group
completed the refinancing of the existing bank loan facilities, in
the total amount of approximately US$267
million, of subsidiaries/associates of BCRE Russia
concerning the four projects in Russia (Kazan, Lyubertsy, Lobnia and
Dmitrov).
- In December 2017, Midroog, has
reaffirmed the credit rating of the Company's Series B and C bonds
of A2 on a local Israeli scale and changed the outlook from
negative to stable. In addition, Midroog changed the credit rating
of the Company's Series A bonds from A2 to A3 on a local Israeli
scale and changed the outlook from negative to stable.
- During December 2017, the Company
has early repaid the whole outstanding principal amount of around
US$93.1 million of Series C bonds
along with the accrued interest and early repayment fee. On
26 January 2018, the Financial
Conduct Authority cancelled the Series C bonds from the Official
List of the London Stock Exchange.
- On 15 December 2017, the Company
announced that the Board continues to examine and analyse, together
with its advisers, a potential De-Listing as well as alternative
methods that could, amongst others, provide liquidity with respect
to the ordinary shares, taking into consideration the interests of
the Company and all its stakeholders.
- On 3 January 2018, the Company
repaid early the whole outstanding principal amount of around
US$23.8 million of Series B bonds
including accrued interest and early repayment fee.
- On 6 February 2018, CEO
Ariel Podrojski resigned from his
position but remains as a consultant to the Company. On the same
day Nansia Koutsou and Shai Shamir
were appointed as interim co - CEOs and Yiannis Peslikas as CFO of
the Company.
- In February 2018, the Company
agreed with a group of lenders for the provision of a financing
facility for the total amount of US$20
million. The facility will bear interest of 6.5% per annum
and will mature on 30 June 2020, on
which date the whole outstanding amount of interest and principal
will need to be paid. As at 31 December
2017 an amount of US$6 million
has been provided to the Company in respect of this loan
facility.
- No distribution will be made for the year ended 31 December 2017, with a view to increasing the
Company's liquidity.
The Company announces that Mr. Luca Tomesani Melotti informed on
his decision to step down as a non-executive Director of the
Company's Board of Directors ("Board") to focus on his
business, with immediate effect. The Board would like to thank Mr.
Luca Tomesani Melotti for his significant contribution to the
Company and to express its gratitude for the opportunity to work
with Mr. Luca Tomesani Melotti during the past years.
The Company further announces that the Board has recommended to
the Annual General Meeting ("AGM") the appointment of Mr.
Moshe Lustig as an independent
non-executive director who will replace Mr. Daniel Aalsvel on the
date of the AGM (as announced earlier) that will be held at Barbara
Strozzilaan 201, 1083HN Amsterdam, the
Netherlands on 7 June 2018 at
9 a.m. GMT (10
a.m. CEST).
The full financial statements and notice of the AGM is now
available to view or download from the Company's website,
www.brack-capital.com.
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