Alpha Pyrenees has published results for the year that ended on 31 December 2014. The fund’s net asset value has been declining in recent years – falling from 28.5p at the end of June 2013 to 22.8p at 31 December 2013 to 12p at 30 June 2014 and finally 6p at 31 December 2014. The sharp falls – 74% over the course of 2014 – are a reflection of the fund’s high leverage and falling property values within the portfolio.
The accounts have been prepared as though the fund is not a going concern.
The value of the property portfolio at the year end was €271.2m (£212.2m), equivalent to a gross valuation yield of 8.3%. This was 3.6% down on the equivalent value at the end of 2013. half the portfolio is represented by one asset – Villarceaux-Nozay, an 82,320 sqm business park . A new long term lease was negotiated with Alcatel-Lucent on this property in return for €9m of agreed works to accommodate their consolidation of staff on site from another Paris region facility. Alpha Pyrenees will get another €489,000 per annum in rent when the work is done.
ALPH : Alpha Pyrenees edges closer to negative net assets