BCRE Brack Capital Real Estate N.V.: Business update

BCRE Brack Capital Real Estate N.V. 
Business update 
 
05-May-2020 / 14:30 CET/CEST 
Dissemination of a French Regulatory News, transmitted by EQS Group. 
The issuer is solely responsible for the content of this announcement. 
 
5 May 2020 
 
             BCRE - Brack Capital Real Estate Investments N.V. 
 
                         ("BCRE" or the "Company") 
 
                              Business update 
 
As per the strategic plan announced on 6 February 2018, in which the Company 
expressed the intention to be in the market for the disposal of its non-core 
        assets, to reduce exposure to stabilized properties and focus on the 
   execution and optimization of its development portfolio, primarily in the 
                                 US, we would like to inform you as follows: 
 
  The Company has been advancing the disposal of its non-core assets as well 
          as focusing into the development and completion of its projects in 
Manhattan. Prior to the COVID-19 outbreak, the Company was in various stages 
 of negotiations for the disposal of its holdings in CitizenM Hotel at Times 
     Square, NYC, its Russian investments and the rest of its investments in 
 non-core markets. All of those disposition processes are currently delayed, 
              pending a clearer view on the virus and the economic backdrop. 
 
 The outbreak has led most of the Company's projects to an utter operational 
halt, whether imposed by regulative requirements (Manhattan construction and 
     Russia retail assets) or by the diminished economic activity (Manhattan 
                                              lodging and Russia logistics). 
 
In Manhattan, all construction activities have been ordered to stop, and the 
      resulting delay in the completion of the 90 Morton project exposes the 
   Company to risks stemming from its contractual liabilities related to the 
                                                                    project. 
 
The Company's negotiations for the 720 West End Avenue projects construction 
       financing, have also been affected by the outbreak and the Company is 
currently considering alternative short-term financing with view to reassess 
    the market's outlook later on when - hopefully - the uncertainty will be 
                                                                    reduced. 
 
 In Russia, the regulatory requirement to close all of the retail centres is 
    severely affecting the assets and BCRE's efforts to exit its interest in 
                                                                this market. 
 
        As the pandemic outbreak and the governments' response policies have 
strongly affected nearly all of the Company's businesses, the realization of 
         its announced business plan is going to extend beyond the timetable 
   perceived prior to the pandemic outbreak. Some of the Company's cash flow 
shortage has been financed by shareholders' short-term loans and discussions 
  with lenders across projects and subsidiaries are taking place. Due to the 
     very heightened levels of uncertainty on the crucial vectors - medical, 
   economic and financial - BCRE is unable to provide at present, guidelines 
  regarding the extend of the negative impact of the crisis on its business. 
 The Company will publish an update by means of a press release with respect 
   to the impact of the virus outbreak on its business as soon as the impact 
                                                  could be better estimated. 
 
About BCRE 
 
      BCRE is an international real estate development and investment group, 
     headquartered in the Netherlands. Through its subsidiary and associated 
        undertakings, the Company is interested in, develops and operates an 
   international portfolio of real estate assets in the markets it operates. 
 
The Company has established local management team platforms with significant 
local market expertise. At present, the Company has offices and teams in New 
                                       York, Moscow, Amsterdam and Limassol. 
 
Regulatory filing PDF file 
 
Document title: Business Update 
Document: https://eqs-cockpit.com/c/fncls.ssp?u=UKGOUWXQOD [1] 
 
Language:       English 
Company:        BCRE Brack Capital Real Estate N.V. 
                Barbara Strozzilaan 201 
                1083HN Amsterdam 
                Netherlands 
Internet:       http://www.brack-capital.com/ 
ISIN:           NL0010763611 
Euronext        MLBCR 
Ticker: 
AMF Category:   Inside information / Issuer activities (acquisitions, 
                sales...) 
EQS News ID:    1036187 
 
End of Announcement EQS News Service 
 
1036187 05-May-2020 CET/CEST 
 
 
1: https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=802dbdfd84da662d45ff936d07937e6b&application_id=1036187&site_id=vwd&application_name=news 
 

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May 05, 2020 08:30 ET (12:30 GMT)