BCRE - Final Results 2017, Directorate Change and AGM

LONDON, April 26, 2018 /PRNewswire/ --

This announcement contains inside information within the meaning of the Market Abuse Regulation (EU) (No 596/2014).

BCRE - Brack Capital Real Estate Investments N.V.
("BCRE" or the "Company")
FINAL RESULTS 2017, DIRECTORATE CHANGE AND POSTING OF AGM

The Board of BCRE announces its results for the year ended 31 December 2017 and the publication of its 2017 Annual Report.

Key highlights for the year ended 31 December 2017 and up to the publication of the Annual Report

• The net asset value ("NAV") of the Group amounted to €201.7 million as at 31 December 2017 (31 December 2016: €254.1 million).

• As at 31 December 2017, the aggregate value of total assets in which the Company has a holding interest in different percentages was approximately €762 million (31 December 2016: €947 million).

• Sale of total holding in Brack Capital Properties N.V. ("BCP") on 14 June 2017 through an off-market transaction at a price of NIS345 per share, for a total consideration of approximately NIS695 million (approximately €174 million). The net profit from the discontinued operations of BCP amounted to €4.9 million.

• 720 West End Avenue project is being let to the Salvation Army and serves as a senior housing facility. The building will be vacated once the replacement facility that is being built on 125^th street is completed, expected by early 2019. As of now the steel structure of the 125^th street building is almost completed and the mechanical, electrical, plumbing and façade work is underway.

• Development at 90 Morton Street, a high end residential development in the West Village Manhattan, is continuing to progress on schedule and is approximately 70% complete. Marketing and sales campaign was launched in April 2018 together with the official opening of the on-site sales office.

• The acquisition of 336 multifamily units (c. 334,000 sq ft) in January 2017 by the BCRE REIT in Preserve at Sagebrook, in Dayton, Ohio, brought the multifamily portfolio in Ohio, US to over 850 units. The performance of the US multifamily residential portfolio continues to run steadily with an overall average occupancy of around 95%.

• On 8 March 2018, the Group signed a letter of intent with a third party for the sale of the property owned by BCRE IHG 180 Orchard Holdings LLC which is classified as held for sale as at 31 December 2017.

• On 27 March 2018, the Group signed an agreement with its partner for the sale of the Group's total shareholding in OSIB-BCRE Bowery Street Holdings LLC which is classified as held for sale as at 31 December 2017.

• The Company continues the efforts of stabilizing the Russian platform, as the shopping centers in Dmitrov and Lyubertsy, the logistic warehouse in Lobnia and Kazan's main retail module are almost fully occupied, whereas the two additional modules in Kazan are still ramping up and the difficulties in filling them has not eased.

• On 22 March 2018, the Group completed the refinancing of the existing bank loan facilities, in the total amount of approximately US$267 million, of subsidiaries/associates of BCRE Russia concerning the four projects in Russia (Kazan, Lyubertsy, Lobnia and Dmitrov).

• In December 2017, Midroog, has reaffirmed the credit rating of the Company's Series B and C bonds of A2 on a local Israeli scale and changed the outlook from negative to stable. In addition, Midroog changed the credit rating of the Company's Series A bonds from A2 to A3 on a local Israeli scale and changed the outlook from negative to stable.

• During December 2017, the Company has early repaid the whole outstanding principal amount of around US$93.1 million of Series C bonds along with the accrued interest and early repayment fee. On 26 January 2018, the Financial Conduct Authority cancelled the Series C bonds from the Official List of the London Stock Exchange.

• On 15 December 2017, the Company announced that the Board continues to examine and analyse, together with its advisers, a potential De-Listing as well as alternative methods that could, amongst others, provide liquidity with respect to the ordinary shares, taking into consideration the interests of the Company and all its stakeholders.

• On 3 January 2018, the Company repaid early the whole outstanding principal amount of around US$23.8 million of Series B bonds including accrued interest and early repayment fee.

• On 6 February 2018, CEO Ariel Podrojski resigned from his position but remains as a consultant to the Company. On the same day Nansia Koutsou and Shai Shamir were appointed as interim co - CEOs and Yiannis Peslikas as CFO of the Company.

• In February 2018, the Company agreed with a group of lenders for the provision of a financing facility for the total amount of US$20 million. The facility will bear interest of 6.5% per annum and will mature on 30 June 2020, on which date the whole outstanding amount of interest and principal will need to be paid. As at 31 December 2017 an amount of US$6 million has been provided to the Company in respect of this loan facility.

• No distribution will be made for the year ended 31 December 2017, with a view to increasing the Company's liquidity.

The Company announces that Mr. Luca Tomesani Melotti informed on his decision to step down as a non-executive Director of the Company's Board of Directors ("Board") to focus on his business, with immediate effect. The Board would like to thank Mr. Luca Tomesani Melotti for his significant contribution to the Company and to express its gratitude for the opportunity to work with Mr. Luca Tomesani Melotti during the past years.

The Company further announces that the Board has recommended to the Annual General Meeting ("AGM") the appointment of Mr. Moshe Lustig as an independent non-executive director who will replace Mr. Daniel Aalsvel on the date of the AGM (as announced earlier) that will be held at Barbara Strozzilaan 201, 1083HN Amsterdam, the Netherlands on 7 June 2018 at 9 a.m. GMT (10 a.m. CEST).  

The full financial statements and notice of the AGM is now available to view or download from the Company's website, www.brack-capital.com.

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