Correction - Interim Results

The following amendment has been made to the Half Yearly Report announcement released today 28 August 2014 at 0700 under RNS No 1826Q

The figure under the heading "USA" in "Operational Review" has now been corrected from US$108,500 to US$108.5 million

All other details remain unchanged.

The full amended text is shown below.

BCRE - Brack Capital Real Estate Investments N.V.

("BCRE" or the "Company")

INTERIM RESULTS ANNOUNCEMENT

The Board of Brack Capital Real Estate Investments N.V. releases the results for the six months ended 30 June 2014.

Highlights

· Successful listing on the London Stock Exchange in May 2014

· Raised €23 million, net of expenses, on Admission to the Main Market

· Generated revenues of €32,8 million from rental income (30 June 2013: €21,9 million)

· Generated revenues of €28,3 million from the sale of residential units upon the start of delivery of apartments in the Dusseldorf project

· NAV amounted to €255,8 million as at 30 June 2014 (31 December 2013: €232,3 million)

· Moody's upgraded corporate bond series from ilA3/Stable to ilA2/stable outlook

· Seeking to complete two significant US property transactions

Harin Thaker, Chairman of the Company, said

"I am pleased to present the Group's first set of half year results since listing on the London Stock Exchange in May of this year. In the short time since then, we have already announced two significant transactions together with an increase in the rating of our corporate bonds. This represents a good start for BCRE as a public company."

Ariel Podrojski, Chief Executive, said

"We are an international real estate development and investment group, headquartered in the Netherlands with established expert local management team platforms in the US, Germany, Russia, UK and India. The Company was established in December 2004 to consolidate and carry out the real estate activities of the Brack Capital Group.

On 28 May 2014, the Company joined the main market of the London Stock Exchange, raising approximately €23 million, net of expenses.

The listing provides us with a trading platform to support our ambition to grow the current portfolio of property assets under management which are generally jointly owned, with BCRE management in operating control.

We have been active in the first six months of 2014 both in terms of our asset management and corporate activities. The successful listing has been a primary focus and we are delighted to have achieved a smooth entry onto the London main market."

Enquiries:

Introduction

BCRE is very pleased to announce the Group's results for the six months ended 30 June 2014.

As at 30 June 2014, the portfolio of properties in which the Group is interested comprises income-producing residential and commercial properties with a total built area of 966,000m² (831,000m² in December 2013). In addition, the Group has an interest in development projects currently under construction with a total combined lettable and saleable area of approximately 215,000m² (221,000m² in December 2013). The Group holds an interest in approximately 350,000m² of land available for sale as plotted development (same as in December 2013), and approximately 180,000m² of lettable and saleable area available for development (same as in December 2013), where development has not yet started. In addition, the Group has as an interest in approximately 300 hectares of land available for future development.

As at 30 June 2014, the aggregate value of assets in which the Company is interested in different percentages was approximately €1,7 billion (31 December 2013 : €1.5 billion).

Operational Review

Since the listing, Midroog, the Israeli subsidiary of Moody's Investors Service Inc., upgraded on 3 July 2014, the rating of our bond series from ilA3/Stable outlook to ilA2/stable outlook thus reaffirming the financial stability and strength of the business and its asset base. The rating agency highlighted BCRE's "notable financial strength and the expectation for quick cover ratios in 2015 and 2016. Together with relatively conservative borrowing levels at 42% equity-to-total assets and 51% debt-to-net CAP, further demonstrating the long term stability of the business."

In total, the Company employs more than 400 staff across the US, Germany, Russia, India and the UK. Each region is managed by a local team with specific knowledge of operating in their respective markets and follows BCRE's diversified strategy of investing alongside established partners in income producing assets, development projects and strategic land whilst generally also providing management and operational control.

Set up below are the highlights for the period in relation to the Company's main regional platforms:

USA

In the USA, one of the Group's principal investment markets, the Company currently operates through its subsidiary, BCRE USA. While our focus is on conversions for residential use and hotel developments in Manhattan, the Group is also now pursuing other income-producing activities, which include lending to smaller residential real estate developers within the greater New York area and acquiring multi-tenanted residential properties outside of this geographic area. 

Since the successful sale of the James Hotel in Soho, 15 Union Square West and the Greystone on the Upper West Side, in 2013, all in Manhattan, we have been looking to increase our USA portfolio.

To this end, we were pleased to announce the acquisition of Cobblestone Grove Apartments (Cincinnati, Ohio) and the signing of two major condominium conversion deals in Manhattan which included 627 Greenwich and a residential deal in Upper West Side Manhattan.

The acquisition of Cobblestone Grove Apartments, consists of 292 class B multifamily property units, located in a suburb of Cincinnati Ohio, and was completed on 10 January, 2014 for US$19.05 million. Occupancy is currently 93% compared to 91% at the time of purchase with rent increases being achieved of around 5%.

Since the period end, the Company has exchanged contracts to purchase 627 Greenwich, a vacant building located in the West Village, Manhattan, New York comprising c.115,000 sq ft gross internal area (net residential area c.85,000 sq ft) for US$105 million.

We are also making progress towards completing a residential transaction, involving a significant property in the Upper West Side of Manhattan, New York. The potential transaction will involve the purchase of a building with a gross area of c.240,000 sq ft (net residential area c.185,000 sq ft). for US$108.5 million. The acquisition is ultimately subject to the approval of the State Court to the transaction.

These type of Manhattan condominium conversion deals have been successfully executed by BCRE USA many times in the past. The cost of renovation of 627 Greenwich and Upper West Side Manhattan is expected to be in the range of US$550 - 850 per sq ft depending on the planning and specification. We are likely to introduce joint venture partners in both deals as we have done in other projects.

In addition to new deals and of particular note, we completed the development of a 230 room CitizenM Hotel at Times Square which opened in April 2014 and is performing well. Overall, it has been a good period with BCRE USA continuing to leverage its significant local market expertise in the New York market.

Germany

BCRE views Germany as a highly attractive market for investing in property and Brack Capital Properties ("BCP"), listed on the TASE, represents the Group's German platform. We intend to continue increasing our exposure in the German market and, at current conditions, to continue increasing, from time to time, our interest in BCP subject to Board approval.

In May of this year, BCP completed the purchase of 1,567 residential units in northern Germany for approximately €54.43 million. This reflects the Group's continuing intention to capitalise on the current opportunities available in the German residential property market. Furthermore, in May 2014, BCP also completed the acquisition of a shopping centre in North Rhine-Westphalia for a total consideration of €13.5 million.

In the second quarter of 2014, BCP was pleased to confirm the initial net income recognition of €5.1 million from the delivery of 68 apartments in the Grafental project representing 34% of the apartments in Phase A. The handing over of the remaining apartments in Phase A and additional net income recognition of c. €10.2 million is expected in the third quarter of this year. In addition, c. 72% out of a total of 187 apartments in Phase B1 and B2 have been already sold as of 30 June 2014. The construction of Phase B1 and B2 commenced in April 2014. The handing over and net income recognition of c. €17.5 million from the delivery of these apartments is expected in the fourth quarter of 2015.

In August 2014, BCP signed a contract, subject to statutory approvals, to purchase a portfolio of 308 residential units in Dortmund, Germany (the "Portfolio"). The total leasable area of the Portfolio is 15,100 sqm., the units are let to various tenants and the occupancy rate of the Portfolio is 98%. The purchase price for the Portfolio is approximately €10.8 million (including transaction costs).

BCP, rated ilA+ by Standard & Poor's Maalot, a subsidiary of MacGraw-Gill Financial Inc., has completed a series of fund raising. In January 2014, BCP raised €15.5 million from debentures (Series B) with a duration of 6.25 years which bear interest at an annual rate of 3.29%. On July 2014, BCP raised a further €22m from debentures (Series C) with a duration of 8.5 years and an interest rate of 3.3% adjusted for consumer price index.

Russia

In Russia, the Company operates through its' subsidiary, BCRE Russia, and has a portfolio primarily focused on large retail commercial developments (some have already become income producing) concentrated in the Moscow region and in Kazan.

In Kazan, BCRE Russia is developing a wholesale and retail market on a land plot of c. 200 ha. The project includes the development of five modules, each comprising of over 1,300 units and a built up area of c.40,000m². Out of the five modules, three are currently under different stages of development. One module is fully leased and operational, another module is leased and will be handed over to tenants over the next couple of months. The third module is under lease negotiations and its construction will be completed (infrastructure works and foundations in place) once let.

The Group is also developing a shopping center with a net lettable are of c. 27,000m² on a 17,429m2 plot in Lyubertsy, one of the most densely populated cities in the Moscow region. The shopping center, which is in advanced stages of leasing, is expected to complete in June of next year.

We are of course continuously monitoring any impact from the broader economic and geopolitical environment as far as we can. Our approach is therefore more cautious and vigilant.

UK

The UK has historically been an important market for us. In 2002, a consortium led by a member of the Brack Capital Group (also comprising Apollo, Merrill Lynch, Lehman Brothers and others) made a successful bid for 82.7% of the issued share capital of Haslemere (a Dutch company listed on Euronext in Amsterdam, with secondary listings in London and Frankfurt and a listing on the Marché Libre in Paris, and with a UK real estate portfolio of 130 properties worth approximately €2.4 billion), valuing the whole company at €1.46 billion. Haslemere remained publicly traded until the end of 2004, when it was sold to GE Capital Real Estate.

In January 2014, BCRE re-entered the UK property market in a low key manner by completing the acquisition of Fountain Court, a vacant prime city centre office property located in Manchester's traditional central business district. Our objective is to build a long-term property business in the UK as part of our diversified multi-national strategy.

Outlook

We have a balanced portfolio with a wide cross section of excellent investments positioned to deliver attractive returns to our shareholders. Our diversified approach has proven to be a successful strategy for us and the Brack Capital Group over the last 20 years, as it makes use of our multi-national experience, enables us to select the best individual opportunities from a range of regions and provides a natural hedge through the spread of our activities.

We are today a profitable, balanced business with a conservative net debt to equity ratio managing a multi-billion euro portfolio which includes a mix of income producing assets that help fund the longer term opportunities contained in our development projects and investment in strategic land.

Our objective is to continue increase our exposure to the US and German markets together with the establishment and steady expansion of a UK platform steady increase of our exposure to this market. It is also our intention to continue maintaining our conservative leverage ratios. An additional important component of the Company's goals until the end of 2015 is to complete the development and handover of a number of projects which are in different construction stages. These include:

· Completion of the Orchard Indigo Hotel in Manhattan, New York

· Complete the handover of phase A and phases B1 and B2 of the Grafental project in Dusseldorf

· Completion of the Lyubertsy shopping center in the Moscow region

· Leasing and completion of the third module in Kazan

· Complete renovation of Fountain Court in Manchester

BCRE intends to make a distribution to its shareholders of around 2.5% of the Company's end-of-year NAV in 2014. To this effect, the Company has evaluated alternative forms under Dutch law to make the distribution and will be announcing the selected method together with the relevant procedures and other information in a separate document.

Note 4 to the condensed interim consolidated financial statements as at 30 June 2014 contains details of the related party transactions entered in to during the period.

Forward-looking statements

This report contains certain forward-looking statements with respect to the financial condition, results of operations and businesses of Brack Capital Real Estate Investments N.V. These statements involve risk and uncertainty because they relate to events and depend upon circumstances that will occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements.

Statements of Directors' responsibilities

The Directors declare that, to the best of their knowledge:

• this condensed set of interim financial statements, which have been prepared in accordance with IAS 34 'Interim Financial Reporting', gives a true and fair view of the assets, liabilities, financial position and profit or loss of BCRE; and

• the interim management report gives a fair review of the information required pursuant to Rules 4.2.7 and 4.2.8 of the Disclosure and Transparency Rules of the United Kingdom.

BCRE's Directors and their functions are listed in the Annual Report and Accounts for 2013.

On behalf of the Board

Harin Thacker

Chairman

REPORT ON REVIEW OF INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

to the Board of Directors of -

BCRE - BRACK CAPITAL REAL ESTATE INVESTMENTS N.V.

Introduction

We have reviewed the accompanying interim condensed consolidated statement of financial position of BCRE - Brack Capital Real Estate Investments BV and its subsidiaries (the Group) as of 30 June 2014 and the related interim condensed consolidated statements of income, comprehensive income, changes in equity and cash flows for the six-month period then ended, and explanatory notes. Management is responsible for the preparation and presentation of these interim condensed consolidated financial statements in accordance with IAS 34 Interim Financial Reporting (IAS 34) as adopted by the European Union. Our responsibility is to express a conclusion on these interim condensed consolidated financial statements based on our review.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed consolidated financial statements are not prepared, in all material respects, in accordance with IAS 34 as adopted by the European Union.

*) Restated. See Note 2d.

The accompanying notes are an integral part of the interim condensed consolidated financial statements.

*) Restated. See Note 2d.

The accompanying notes are an integral part of the interim condensed consolidated financial statements.

*) Restated. See Note 2d.

**) Retrospectively adjusted. See Note 3(l).

***) Represented amounts lower than € 0.01.

The accompanying notes are an integral part of the interim condensed consolidated financial statements.

*) Restated. See Note 2d.

The accompanying notes are an integral part of the interim condensed consolidated financial statements.

*) Restated. See Note 2d.

The accompanying notes are an integral part of the interim condensed consolidated financial statements.

*) Restated. See Note 2d.

The accompanying notes are an integral part of the interim condensed consolidated financial statements.

*) Restated. See Note 2d.

The accompanying notes are an integral part of the interim condensed consolidated financial statements.

The accompanying notes are an integral part of the interim condensed consolidated financial statements.