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

DJ Business Update

BCRE Brack Capital Real Estate N.V. 
Business Update 
 
22-Dec-2020 / 17:00 CET/CEST 
Dissemination of a French Regulatory News, transmitted by EQS Group. 
The issuer is solely responsible for the content of this announcement. 
 
This announcement contains inside information within the meaning of the 
Market Abuse Regulation (EU) (No 596/2014). 
 
22 December 2020 
 
      BCRE - Brack Capital Real Estate Investments N.V. 
 
      ("BCRE" or the "Company") 
 
      Business update 
 
 Further to the Company's announcements, dated 21 May 2020, and 11 September 
2020 as well as the Company's Annual Report, the Company would like to share 
 its view and information on the ongoing COVID-19 crisis effect on its major 
           residential project in Manhattan - 720 West End Av (the Project). 
 
     Following a period of an already weak Manhattan residential market, the 
   outbreak of Covid 19 instigated major negative developments: a regulatory 
   freeze of construction works in the city; a virtual freeze in residential 
     sales; and an extreme tightening of credit availability. These negative 
 developments forced the Company to alter course from the Project's original 
            business plan. 
 
    During the first months of the pandemic the Company examined extensively 
    various alternatives and structures for the development financing of the 
    Project. Dozens of potential lenders were approached, and many undertook 
     relatively detailed diligence processes. This process did not produce a 
   viable financing offer, mainly due to the high uncertainty level, general 
   market environment and scarcity of financing appetite as well as relative 
            complexity of the Project. 
 
         Consequently, the Company's board and management quickly adopted an 
  alternative approach, suitable to the current risk-averse environment - an 
     approach involving a significantly lower leverage accompanied by a high 
    proportion of presale at attractive price levels. The strategic thinking 
           behind the Company's new approach was to construct the Project in 
         anticipation of a potential market pick - up towards the end of the 
construction period (2-3 years), while offering to investors a low risk hard 
  asset, attractively priced and inflation resilient, which is scarce in the 
economic backdrop of low interest rates and inflation concerns due to rising 
            money supply and budget deficits. 
 
          The Company is currently reviewing alternatives based on the above 
   structure. If a viable development scheme is not formulated by the end of 
           January, the Company will face one of two main alternatives (or a 
     combination thereof): extend the current loans per existing contractual 
      options (by up to six months) or put the Project for sale, despite the 
  suboptimal circumstances (still hesitant buyer pool even with the positive 
    vaccine news and high uncertainty regarding economic environment and the 
            city tax regime). 
 
ENQUIRIES: 
 
BCRE - Brack Capital Real Estate Investments 
N.V. 
Nansia Koutsou, Chief Executive Officer 
Yiannis Peslikas, Chief Financial Officer        [phone] 
 
Novella Communications 
Tim Robertson                                   [phone] 
 
            About BCRE 
 
      BCRE is an international real estate development and investment group, 
   headquartered in the Netherlands and listed on the Cyprus Stock Exchange. 
          Through its subsidiary and associated undertakings, the Company is 
    interested in, develops and operates and 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 
 
File: Business Update [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:    1157028 
 
End of Announcement EQS News Service 
 
1157028 22-Dec-2020 CET/CEST 
 
 
1: https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=f3e6f2bf9b84e16049ae3d0bb65d1eae&application_id=1157028&site_id=vwd&application_name=news 
 

(END) Dow Jones Newswires

December 22, 2020 11:00 ET (16:00 GMT)