LONDON (Alliance News) - PME African Infrastructure Opportunities PLC on Friday said its net asset value fell in 2018 as the value of its property in Dar-es-Salaam, Tanzania, declined.
The stock was trading 12% lower on Friday at USD0.07 per share.
The investment company said its pretax loss widened in 2018 to USD1.5 million from USD875,000 the year before, as NAV declined to USD0.15 per share from USD0.21 per share reported at the end of 2017.
The company now has one remaining asset, namely a leasehold building in Dar-es-Salaam, which is currently 81% let.
Dar-es-Salaam property was acquired in 2010, from Dovetel T Ltd, which was also a tenant of part of the property. In October 2017, PME Properties Ltd, a subsidiary of PME African Infrastructure, issued an eviction notice to Dovetel for non-payment of rent.
At the end of December 2018, the value of the Dar-es-Salaam property has decreased to USD3.6 million.
"This valuation is in line with an updated value assessed by the local expert at that date and reflects the continued uncertainty as to the economic position of Tanzania, a decline in the market for high end office accommodation, a decrease of rental income during the period and a reduction in the remaining lease term," explained Chair Paul Macdonald.