Invista European Real Estate has published its results for the year ended 30 September 2014. The net asset value fell again, from 15p to 12p, as property values fell and sales were struck at prices below last valuations. The property valuation fell from €325.6m to €281.8m (partly the result of sales but also a 7.39% like-for-like fall in property values), the outstanding loan fell from €229.7m to €217.9m and the NAV fell from €64m to €40.1m. The company’s loan to value ratio has risen from 70.2% to 76.3%.
The company has a disposal programme underway but progress has been slow. The statement says that two properties have been sold and four properties are under offer of fourteen identified for sale. Puzzlingly, the statement says that “likely aggregate net proceeds are likely to be below current valuation” which rather calls into question why these properties have been overvalued in the accounts.
Frustrated with progress, the company has brought in another adviser, Eastdil Secured LLC, to undertake a “strategic review” and examine options such as selling some of the subsidiaries that hold the properties
IERE : Invista European NAV still sliding