Equest Balkan Properties (EBP) has seen its loss widen to EUR 71 mln in the first six months of 2009 from EUR 9 mln a year ago. The company attributed the higher losses to 'a severe deepening in the decline of the commercial property values in South East Europe'.
Equest Balkan Properties (EBP) has seen its loss widen to EUR 71 mln in the first six months of 2009 from EUR 9 mln a year ago. The company attributed the higher losses to 'a severe deepening in the decline of the commercial property values in South East Europe'.
The London-listed property firm, which focuses on investments in the Balkan region, said it registered a 73% drop in Net Asset Value per share over the past 12 months from EUR 1.45 in June 2008 to just EUR 0.39 at end-June 2009.
'Our poor mid-year results reflect further reductions in the market value of our assets. The commercial real estate sector continues to decline. Investor activity is scarce, the mortgage markets are tight, and downward pressure on rents is now widespread,' Charles Jillings, non-executive chairman of EBP summed up. He is stepping down from his post and will be replaced by deputy chairman Donald Lake.
The company is taking measures to improve its cash position through asset sales, and has started the marketing of its stake in the Serdika site in Sofia, Bulgaria as well as its Apollo site in Belgrade, Serbia. It also recently exited Macedonia with the sale of Business Center Skopje.
EBP's total portfolio has more than halved over the past 12 months to EUR 192 mln, from EUR 402 mln a year ago. EBP's gearing ratio has increased from 46% at the end of December 2008 to 70% at present, and the company is continuing negotiations with Bank Austria regarding the refinancing of the Moldova Mall and the Vitantis project.
