Invista Real Estate says on track to meet its FY view
The UK property fund manager said it continued to witness a significant correction in real estate markets across Europe but its cash balance of 88 million pounds ($132.7 million) placed the company well for the future.
Invista's assets under management fell 15 percent to 6.74 billion pounds ($10.16 billion) as of Nov. 30, from 7.98 billion pounds on June 30.
The paralysis in investment markets due to the global crisis has accelerated the decline in values across all property markets, it said.
"Assets are undergoing a second wave of de-rating with the scarcity of available capital providing no support for values. As the de-leveraging continues we expect to see further declines into 2009," Invista said.
Invista expects further falls in the second half of the year in the value of investment properties held in other fund vehicles and on its balance sheet.
If the market conditions continue to prevail, at year end, the company expects to recognise the reduction in fair value of its investment in Invista Foundation Property Trust shares through profit and loss, it said in a statement.
Shares of the company closed at 36.75 pence on Thursday. ($1=.6633 Pound) (Reporting by Balachander Surianarayanan in Bangalore; Editing by Gopakumar Warrier)
Source: http://uk.reuters.com/
Print 2008-12-13