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
(END) Dow Jones Newswires
May 05, 2020 08:30 ET (12:30 GMT)
© 2020 Dow Jones News