LONDON (Alliance News) - Brack Capital Real Estate Investments NV on Monday said its wholly-owned subsidiary has reached a preliminary agreement with the Dussledorf municipality for the rezoning of the land designated for office use in its Grafental project for residential use.
Brack Capital Properties NV reached the agreement, which the company said will add 650 residential units to the project. It is expected to be ready for construction during 2016 to 2017, it said.
"Once the rezoning is fully approved, the number of apartments to be developed in the next few years in the Grafental project and the new project in the Grafenberg neighbourhood in Dusseldorf will total 1,230 residential units and will generate sales of approximately EUR620 million based on current selling prices," said the company in a statement.
Brack Capital said, assuming profitability and cashflow ratios similar to those achieved from previous phases at the project, it expects the sale of the 1,230 residential units to lead to EUR140 million in profit and EUR230 million in pretax cashflow.
Brack Capital shares closed down 0.7% to EUR1.50 per share on Monday.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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