BCRE.L Regulatory News (BCRE)

4 August 2016

BCRE - Brack Capital Real Estate Investments N.V.

("BCRE" or the "Company")

Publication of Trading Update

BCRE - Brack Capital Real Estate Investments N.V (the "Company") is pleased to report a trading update (the "Trading Update") regarding the Company's strategy, operations and performance, as well as the Company's unaudited NAV for June 2016.

Disclaimer: Some of the information described herein constitutes forward looking information which is not under the full control of the Company and which fulfilment, in whole or in part, is uncertain.

USA platform

720 West End Avenue, a major residential building in the Upper West Side of Manhattan: the program of the replacement site on 125th street in Manhattan progresses well, with demolition of the existing building completed, and excavation and foundations works to commence soon.

90 Morton St, a major Manhattan development in the West Village: the condo offering plan for this project has been approved by the New York City attorney general in May 2016.

Indigo Lower East Side hotel in Manhattan: following its successful launch in November 2015, the 295 room hotel, operated by InterContinental Hotel Group (IHG), is ramping up well, peaking $290 average daily rate and exceeding 80% occupancy as of July. The outstanding performance of the hotel's unique rooftop Food & Beverage outlet as well as the refinancing of the hotel's construction loan further boosts the asset's Funds from operations.

The Company's estimations for the expected profits from the two conversion projects (720 West End Avenue and 90 Morton St.) remain within the ranges previously projected by the Company as stated in the latest supplement to the bond prospectus.

Germany platform

During 2016, the Company's German platform continued to expand its income producing portfolio, as it acquired[1] properties exceeding €80m in value and approx. 70,000 lettable sqm in Kiel, Nordrhein

Westfalen and Hannover.

Russia platform

The Company continues stabilizing the Russian platform as the shopping center in Dmitrov, the logistic warehouse in Lobnia, and Kazan's main retail module are almost fully occupied whereas the Lyubertsy shopping center and the two additional modules in Kazan are still ramping up.

However, despite (i) oil prices rising from very low levels, (ii) some recent macro indicators showing signs of stabilization in Russia's economy and (iii) mitigated currency volatility; the on-going contraction in private consumption is expected to result in further value depreciation of the Company's retail-centric portfolio. Additionally, the Company foresees the Russian consumer markets remaining in a state of extreme stress for a prolonged period of time.

BCRE Russia is in discussions with its lenders, which are expected to result in improved loan terms for some assets.

Corporate

The following table presents the Company's unaudited projection of shareholders' equity into segments for June 30th, 2016, based on Company's estimations and certain assumptions. The

Company expects to publish the reviewed interim results in September 2016:

June 2016 unaudited projection of shareholders' equity into segments:

The Company is looking to continue to benefit from its exposure to the German market through BCRE Germany - which operates and owns (i) a large income producing portfolio (where the residential average new lettings are 28% higher than the portfolio average and the residential and commercial portfolios are valued 84 bps and 40 bps above their benchmark, respectively[3])and (ii) a

development division (where €122m of profits are expected from the platform's prospects based on current Q1/2016 sell out prices).

For the purpose of pursuing opportunities and to benefit the Company's operations, the Company may consider raising additional capital.

If by the time the two main Manhattan developments are substantially completed, the Company's share continues to trade at a considerable discount to NAV and/or with low trading volumes, the Company will consider alternative liquidity strategies to address this, including 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 light of the Brexit vote and recent headwinds faced by the lending market in Manhattan (in particular construction lending), the Company sees opportunities in the US and UK debt markets.

During 2016, both BCRE and BCRE Germany have distributed capital in an amount of approximately €4.8m and €6m respectively to their shareholders.

ENQUIRIES:

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, Dusseldorf, Moscow, Kazan, New Delhi, Amsterdam, Limassol and Budapest.