Alpha Pyrenees Shares Drop As Final Property To Sell Below Valuation

9th Mar 2018 12:20

LONDON (Alliance News) - Shares dropped in Alpha Pyrenees Trust Ltd on Friday

Shares in the commercial real estate investor fell 25% at 0.0750 pence on Friday.

Alpha Pyrenees reported a pretax loss for the year at GBP12.4 million, narrowed from GBP15.6 million in 2016, despite revenue dropping to GBP413,000 from GBP1.0 million.

The narrowed loss was a results of a smaller loss on the revaluation on investment properties held for sale, as well as lowered administration costs, not quite offset by a loss on the disposal of investment properties.

As at December 31, its net asset value per share was negative 63.5 pence, widened from negative 50.2p on the same date the prior year.

During 2017, Alpha Pyrenees sold two properties in France at price totalling GBP4.9 million and the remaining two properties in Spain for GBP1.0 million. The trust still holds one property in France of 6,340 metres of commercial real estate, which is currently vacant and being actively marketed.

"Formal marketing of the trust's remaining property is ongoing and the results of the marketing process to date indicate that, although there is no certainty that a transaction will take place, if it does, the price achieved is most likely to be lower than the valuation at December 31, 2017. The trust will provide further updates on progress in due course," said Chairman Serena Tremlett.

"As the board has previously stated, the sale process will not result in any return to ordinary shareholders after repayment of the trust's bank borrowings, to the extent that this is possible, has taken place," Tremlett added.

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