China Real Estate Opportunities - Interim Results For The Six Month Ended 30 June 2009
China Real Estate Opportunities plc (“CREO” or the “Company”), is an AIM-listed company established to acquire investment and development properties in China.
Highlights
- CREO portfolio was valued at CNY9.47 billion (GBP£835.9 million), down 6.2% in CNY terms for the 6 months to 30 June 2009.
- The investment property portfolio, represented by City Centre, Central Plaza and Treasury Building declined only 1.2% on an aggregated basis in CNY terms.
- This has resulted in a 9% year-on-year uplift in the European Public Real Estate net asset value per share (“EPRA NAV per share”) from £9.74 as at 30 June 2008 to £10.62 as at 30 June 2009, and a decline of 20% for the six month period since 31 December 2008. Three quarters of the 20% decline is the result of the strength in sterling during the period.
- Rental income was stable in local currency in the period despite lower average occupancy across the portfolio as the Company continues to achieve average rental uplifts of up to 16% on a square metre basis.
- Since the period end, credit approval has been received for a £26.6 million five year loan with the Industrial and Commercial Bank of China (ICBC) for the refinancing of Treasury Building.
- CREO’s effective 5% minority stake in the City Centre 5 Development was successfully disposed of for CNY95 million (GBP£8.6 million), representing an 8.6% premium to valuation as at 31 December 2008.
Ray Horney, Chairman of CREO, commented:
“The first half of 2009 has been a significant period for the Company. The Board is pleased with the progress achieved, particularly through its strategic focus on strong asset management in the face of an increasingly competitive environment. Recent advances made in relation to financing are also very encouraging and CREO is well positioned to take advantage of further improvement in overall market conditions.”
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