LONDON (Alliance News) - Newly-listed property companies Brack Capital Real Estate Investments NV and Starwood European Real Estate Finance Ltd said they have made gains in the first half of 2014.
Brack Capital Real Estate Investments NV, which listed on the main market of the London Stock Exchange in May, posted gross profit of EUR29.4 million for the six months ended June 30, up from EUR16.4 million a year earlier, after recording EUR28.3 million worth of income from the sale of residential units. In the previous year, the company did not sell any residential units.
Gross rental income rose to EUR32.8 million from EUR21.9 million a year earlier.
In turn, the company said its net asset value amounted to EUR255.8 million at June 30 compared with EUR233.3 million at the end of December.
At an operating level the company acquired Cobblestone Grove Apartments in Ohio for USD19.1 million. Occupancy at the site is currently 93% compared with 91% at the time of purchase.
The US is one of the group's principal investment markets and Brack Capital is currently working towards completion of a residential transaction in the Upper West Side of Manhattan, New York. The potential transaction will involve the purchase of a building with a gross area of around 240,000 square feet for USD108,500.
Looking ahead, Brack said its main objective will be to increase its exposure in the US as well as the German market and gradually enter the UK property market.
Meanwhile, Starwood European Real Estate Finance, which conducted an initial public offering in December 2012, posted total income from investments of GBP7.1 million for the six months ended June 30, compared with GBP1.6 million a year earlier.
Total income was boosted by income from loans advanced for GBP7.0 million compared with GBP1.2 million a year earlier.
The company, domiciled in Guernsey, is a closed-ended investment company that executes and services a diversified portfolio of commercial real estate debt investments in liquid markets in the UK and Continental Europe.
At June 30, the company said it has committed 96% of it net IPO proceeds and subsequent "tap" issues of GB233.8 million. Of this committed amount approximately 91% was actually invested as at June 30, lower than the committed amount due to some amortisation received since original commitments were made on two loans and some commitments still to be drawn on two of the loans, Starwood said.
Shortly after the period-end the group committed a further EUR25 million to the W Hotel in Amsterdam meaning that all net proceeds have now been committed.
The company makes its investments through Starfin Lux Sàrl, an indirect wholly-controlled subsidiary located in Luxembourg.
Starwood said among its highlights in the first half was the EUR14.3 million financing facility it provided for the acquisition of an office building in Amsterdam. In addition, the group provided a GBP27 million financing facility for an office building in west London.
In April, the company declared a dividend for the period from January to March of 1.25 pence per share, while in July it declared a dividend for the period from April to June of 1.35 pence per share.
Neither Brack Capital nor Starwood European Real Estate shares were traded in London Thursday morning.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
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