THE Multiplex European Property Fund (ASX: MUE) has delivered an interim net loss after tax of $1.7 million, which is an improvement compared to a net loss of $26.7 million in the previous corresponding period.
As at December 31, net tangible assets was 10 cents per unit compared to 11 cpu in 30 June 2012 after a devaluation of €4.8 million from the value of the funds property.
As a result of lower property values, the loan to value ratio calculated for the fund’s debt facility at period end was 102.7%, exceeding the 95% LVR which is required to avoid a cash lock up under the facility.
As a result, the cash and cashflow within the German partnerships that own the fund’s property interests must be retained in those partnerships and financier consent is required to pay certain expenses. Restrictions on cash remittances from the partnerships will cease only in limited circumstances where certain conditions are met. The debt facility is due to expire in April 2014 and discussions with the financier are ongoing.
Property Review
