31 Jan 2017 18:20
This announcement contains inside information within the meaning of the Market Abuse Regulation (EU) (No 596/2014).
31 January 2017
BCRE - Brack Capital Real Estate Investments N.V.
("BCRE" or the "Company")
Deconsolidation of Brack Capital Properties N.V.
As announced on 28 September 2016, the Company sold 420,809 shares of Brack Capital Properties N.V. ("BCP"), whose shares are traded on the Tel Aviv Stock Exchange, through an off-market transaction at a price of NIS 324 per share and for a total consideration of NIS 136,342,116 (approximately EUR 32.4 million). This transaction reduced the Company's holding in the issued share capital of BCP to 28.31%.
Due to the reduction of the Company's shareholding in BCP and after careful consideration, the Company has now reached the conclusion that, it no longer has control over BCP and therefore will not consolidate the financial position of BCP starting from 28 September 2016 ("Deconsolidation date"). This conclusion is also supported by the recent receipt of an indication that changes to the voting arrangement in respect of BCP, to which the Company is a party, will be made and the further reduction of the Company's shareholding in BCP to approximately 26.33% (non-fully diluted basis) due to the share issuance as announced by BCP today. It should be further noted, that to the best knowledge of the Company, the aforesaid deconsolidation is not expected to have an effect on the classification of the controlling shareholders of BCP, in accordance with the applicable Israeli securities law, 1968.
From the Deconsolidation date the investment in BCP will be accounted for using the equity method. The financial results of BCP will be consolidated, for the financial year ended 31 December 2016, up to the Deconsolidation date and subsequently will be accounted for under the equity method. The estimated gain (net of transaction costs) from the sale of BCP shares and the revaluation of the remaining investment in BCP to fair value upon loss of control is approximately between EUR 47 million to EUR 57 million (unaudited). In addition, the estimated decrease in the total assets and total liabilities of the Company will be approximately between 53% to 58% and between 58% to 63% respectively (unaudited), compared to the Company's total assets and total liabilities as of 30 June 2016.
The deconsolidation does not impact the compliance by the Company with any covenants under its various loan agreements.
The Company will publish its Annual Report for 2016 in due course.
ENQUIRIES:
BCRE - Brack Capital Real Estate Investments N.V. | |
Ariel Podrojski, Chief Executive Officer | |
Nansia Koutsou, Chief Financial Officer / Chief Operating Officer | +31 20 514 1004 |
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Novella Communications | |
Tim Robertson | |
Toby Andrews | +44 203 151 7008 |
About BCRE
BCRE is an international real estate development and investment group, headquartered in the Netherlands and listed on the London Stock Exchange. Through its subsidiary and associated undertakings, the Company is interested in, develops and operates an international portfolio of real estate assets, predominantly located in the USA, Germany and Russia.
The Company has established local management team platforms with significant local market expertise in the US, Germany, Russia, India and the UK with exclusive access to over 550 staff. At present, the Company has offices and teams in New York, London, Frankfurt, Düsseldorf, Moscow, Kazan, New Delhi, Amsterdam and Limassol.