TCF : Terra Catalyst NAV dramatically higher and plans distribution
Terra Catalyst published its results for the year ended 31 March 2014 on 26 August. These showed its net asset value rising from 76p to 208p over the year. The board also said it would distribute £2.3m to shareholders. A dramatic reassessment in the value of Terra Catalyst’s investment in Spazio investment NV accounts for the increase in the NAV. Terra Catalyst has written up the value from €2.47 per share to €6.43 per share. The statement says that Spazio has renegotiated its debt (that was due to mature in October), changed its management arrangements (Terra believes for the better), that the Italian property market remains weak but there are signs of recovery and a growing interest from domestic and international investors and the tax case that Spazio faced has been settled at a cost of €14m.
Terra does warn though that because of the way the new debt is structured, distributions from Spazio to Terra can only be accomplished if Spazio makes substantial sales of property from its €359m portfolio. The portfolio comprises a number of telecom exchanges, 8 industrial / logistics properties, two portfolios of properties defined as “Vacant Trading and Small Reconversion”, Eastgate Park (a logistics park in Portogruaro) and edificio16 a development property in Milan (pictured)