Offshore property company loses £54 million

26/08/2008

Mapeley, the offshore property investment company located in Guernsey, has reported a £54 million loss in its half-year figures for 2008.

The offshore company, landlord to HM Revenue & Customs, reported a pre-tax loss of £53.8m in the six months to June. This compares with a profit of £30.2m last year. Total asset value dropped from £2.31bn to £2.23bn, while net asset value per share fell 13 per cent to £16.17 from £18.62.

Mapeley, which owns a direct investment portfolio as well as property through outsourcing deals with organisations such as Abbey, said funds from operations rose to £63.1m, compared with £27.5m for the same period last year. It attributes the gains to strength of asset management receipts and disposals of commercial property.
Jamie Hopkins, chief executive, said: "Market conditions remain challenging, but we expect the Mapeley business model to continue to perform robustly."

Mapeley has been in talks about a private deal with its majority shareholder, US hedge fund Fortress. It managed to escape a possible debt crisis after refinancing a £257m short-term debt facility.

Average bank debt maturity is now 6.8 years and interest rates are fixed on 96 per cent of the debt. The average rate of interest is 5.48 per cent.