17th May 2016 08:00
LONDON (Alliance News) - Eastern European Property Fund Ltd on Tuesday said its focus remains on disposing of all its remaining properties at "appropriate prices", but said the estimated costs and timing involved in appointing a liquidator for the company remain under review.
In a statement, Chairman Martin Adams said that the "board cannot predict when the remaining properties will be sold, but continues to encourage the manager and property manager to identify unusual, as well as more conventional, potential buyers and to be creative in their approach to, and structure of, potential sales transactions".
"While sales are being pursued, the board remains vigilant to minimise operating costs and cash burn," Adams added, noting that "the estimated timing and costs involved in appointing a liquidator of the company and its subsidiaries remain under review at each board meeting".
During the year ended December 31, all of Eastern European Property's properties were marketed and made available for sale, which resulted in further sales at its Nil Passage site in Istanbul. Eastern European Property said, following sales in 2016, this property has been fully realised.
Eastern European Property added that in Bucharest and Sofia the markets for selling investments and letting space have "remained tough", although added that there are increasing signs that in Bucharest the commercial property market is improving. In Sofia, however, Eastern European said there has been "very little interest from the investment market".
Eastern European generated a total income of GBP687,000 for the year ended December 31, up from GBP602,000, but posted a net loss on operating activities of GBP283,000, up from GBP19,000. This was due to a lower investment gain of GBP40,000 from GBP565,000, after it recorded a loss on the revaluation of investment properties.
The company said its net asset value at year-end was GBP15.8 million, or 101.46 pence per share, down from GBP16.4 million, equivalent to 105.36p per share, a year earlier.
Shares in Eastern European were untraded on Tuesday, having last traded at 50.00p.
By Hannah Boland; [email protected]; @Hannaheboland
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