BCRE.L Regulatory News (BCRE)

24 March 2016

BCRE - Brack Capital Real Estate Investments N.V.

("BCRE" or the "Company")

Publication of Trading Update

The Company is pleased to report a trading update (the "Trading Update") regarding recent material events affecting the Company's operations and performance, as well as the Company's unaudited NAV for December 2015.

Please read the disclaimer below in full before proceeding.

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.

The Company is pleased to report on recent material events that include the successful completion of two major development projects, which have increased the Company's income producing portfolio, the completion of a sizable investment in Manhattan and important advances in another large Manhattan development. These events and others, as well as the Company's unaudited NAV projections for December 2015, are presented herein.

Shifting US development risk to yield

In November 2015, the Company has completed a major ground-up development of an InterContinental's Indigo hotel in Manhattan's Lower East Side. The 25 stories, 295 rooms hotel includes a considerable food & beverage component and benefits from magnificent unobstructed views. The development completion contributes to the improvement of the Company's risk profile, as well as to its business profile through the increase in income.

Completion of a large scale residential building in the Upper West Side, Manhattan 

In October 2015, the Company has completed the acquisition of a large and notable asset located at 720 West End Avenue in Manhattan's Upper West Side, for approximately US $109 million. This 240,000 sf property is viewed by the Company as a major source of future profitability while very defensive in nature due to its attractive acquisition basis.

Advancing 90 Morton planning

In this major Manhattan development located in the West Village the Company has made important and meaningful progress in the planning process, thus creating significant value since acquisition and diminishing the risks associated with the project's planning.

Manchester Asset Disposal

In January 2016, the Company sold "Fountain Court", the Manchester asset which the Company purchased in 2014. The asset was sold at a significant uplift to its purchase cost.

Russian platform

The effect of the current economic situation in Russia will be reflected in the valuations of December 2015, thus reducing the Company's exposure to this geography. With the development phase completed of the shopping center in Lyubertsy (current signed leases and term sheets nearing 85%) all four assets in Russia are now income producing. Two of the assets are stabilized at approximately 100% occupancy, and the remainder of the portfolio is currently at ramp up stages. The Company's strategy for the Russian platform is to focus on the portfolio's stabilization.

Rating reaffirmation

In November 2015, Midroog (the credit rating agency accredited by Israel and a subsidiary of Moody's Investors Service Inc.) reaffirmed the ilA2 rating of the Company's Series A, B and C Bonds. Noting favorably on the Company's 57% net-debt to net-cap leverage measure, the rating report also highlighted the Company's financial strength mentioning, among others, that "The Company's liquidity and significant cash flow sources, reduce its dependency on corporate debt refinancing", and that "the coverage ratios and the scope of the FFO which is trending upward, reflect favorably on the financial profile".

December 2015 unaudited NAV estimation

The following table presents the Company's unaudited projection of shareholders equity for December 31st, 2015 based on Company's estimations. The Company expects to publish the audited results in April 2016.

The NAV based on the mid-range estimation above, reflects a €22 million decrease from the €267 million equity attributed to shareholders in the Company's June 2015 financial statements.

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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, Russia, India and the UK.

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 400 staff. At present, the Company has offices and teams in New York, London, Frankfurt, Düsseldorf, Moscow, Kazan, New Delhi, Amsterdam, Limassol and Budapest.