The value of property investment vehicle China Real Estate Opportunities' portfolio declined by 6.2 per cent during the first six months of the year, it said today.
The Treasury Holdings-backed property investment firm said that its portfolio at the end of June was worth CNY9.47 billion (£835.9 million).
Its net asset value fell 20 per cent over the six-month period, a decline which was largely due to currency fluctutations.
The investment property portfolio, represented by City Centre, Central Plaza and Treasury Building declined 1.2 per cent on an aggregated basis in CNY terms. This resulted in a 9 per cent year-on-year uplift in the European Public Real Estate net asset value per share from £9.74 to £10.62, and a decline of 20 per cent for the six month period since December 31st.
CREO said rental income was stable in local currency in the period despite lower average occupancy across the portfolio as the company continues to achieve average rental uplifts of up to 16% on a square metre basis.
It added that credit approval has recently been received for a £26.6 million fivepyear loan with the Industrial and Commercial Bank of China (ICBC) for the refinancing of Treasury Building.
“The first half of 2009 has been a significant period for the company. The Board is pleased with the progress achieved, particularly through its strategic focus on strong asset management in the face of an increasingly competitive environment," said Ray Horney, chairman.
"Recent advances made in relation to financing are also very encouraging and CREO is well positioned to take advantage of further improvement in overall market conditions,” he added.