Invista European says its Strategic Review has included a number of discussions with third parties in order to achieve either a recapitalisation of the Company or a sale of subsidiary undertakings owning the core portfolio.
Recently, there has been a tenant default as well as the unexpected exercise of lease breaks which, in the absence of new tenants being contracted, would have a material adverse effect on rental income in the future. In light of these events, the most recent valuation of the Company’s portfolio of investment properties was €226.15m (undertaken by Savills as at 30 June 2015), which reflects a €5.9m or 2.54% decline since the last quarterly valuation, dated 31 March 2015, on a like for like basis.
The Board has concluded that a rapid realisation of the Company’s assets is necessary to maintain the support of the Company’s lenders. A number of the parties who have been identified in the course of the Strategic Review may be potential buyers on such a basis. There can be no certainty, however, that any transaction will take place, or that, if one does, there will be any value available for either ordinary or preference shareholders.
UPDATE 20/7
Invista European has now received indicative offers from buyers of the portfolio. there’s still no guarantee that a deal will be done but the Board says there will not be any material value for ordinary or preference shareholders if the deals on the table are concluded.
IERE : Invista European mulling fire sale of assets