LONDON (Alliance News) - Brack Capital Real Estate Investments NV on Thursday said it is considering raising additional capital in a bid to further benefit from its exposure to the German market, and said there were good opportunities in the US and UK debt markets.
Brack Capital said during 2016, its German platform has continued to expand its income producing portfolio, buying properties exceeding EUR80.0 million in value and around 700,000 lettable square metres in the country.
The company said it was looking to continue to benefit from its exposure to the German market and was considering raising additional funds to pursue further opportunities in the country and to boost its existing operations.
Brack said opportunities in the UK and US debt markets had also presented themselves in light of the UK's vote to leave the European Union, along with recent headwinds faced by the lending market in the US.
Meanwhile, its US platform has received approval for a major Manhattan development in the West Village.
Brack said the demolition of the existing building at its other project, the 125 Street Manhattan scheme, has completed with excavation and foundation works to commence soon.
Brack said its estimations for the expected profit from the two conversion projects remain within the ranges previously projected.
Brack noted that if by the time the two developments are substantially completed, its shares continue to trade at a "considerable discount" to its net asset value, or with low trading volumes, it will consider alternative liquidity strategies to address this. These will include a sharp acceleration of its ordinary course of business asset sale in parallel to substantially increasing the dividend payments and a share buyback program.
In Russia, Brack said the Russian consumer markets are expected to remain in a state of extreme stress for a "prolonged period of time", and said the value of its retail-centric portfolio within the country is expected to depreciate further.
Brack's Russian operations are in talks with its lenders, which is expected to result in improved loan terms for some of the assets.
Shares in Brack were untraded on Thursday, having last traded at EUR1.25.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
Copyright 2016 Alliance News Limited. All Rights Reserved.