BCRE BRACK CAPITAL REAL ESTAT INVESTM NV
BCRE Brack Capital Real Estate N.V. 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 CitizenMHotelat 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'snegotiations for the 720 West End Avenueprojects 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 |
| 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 Ticker: | MLBCR |
| AMF Category: | Inside information / Issuer activities (acquisitions, sales...) |
| EQS News ID: | 1036187 |
| End of Announcement | EQS News Service |
1036187 05-May-2020 CET/CEST
