Carpathian has announced that it realised an overall pre-tax profit of £11.2 mln (EUR 12.5 mln) on the sale of the Varyada Shopping Centre in the northwest of Prague at the end of 2008. The shopping centre was bought by Invesco Beteiligungsverwaltungs for £46.7 mln (EUR 52 mln).
Carpathian has announced that it realised an overall pre-tax profit of £11.2 mln (EUR 12.5 mln) on the sale of the Varyada Shopping Centre in the northwest of Prague at the end of 2008. The shopping centre was bought by Invesco Beteiligungsverwaltungs for £46.7 mln (EUR 52 mln).
Carpathian, the AIM-listed investor in retail properties in Central and Eastern Europe, announced on Monday that it realised a pre-tax capital profit of £10 mln and a revenue profit of £1.2 mln from the shopping centre between November 2005 and December 2008 when it owned the property.
The sale generated an internal rate of return of 63.75% and the price represented a 3.3% discount to the value that Varyada was held, at subsidiary company level, as at 31 December 2007. Carpathian said it will not incur tax on capital profits although corporation tax will be incurred on the revenue profits at a rate of approximately 7%.
The shopping centre consists of 73 retail units and was acquired by Carpathian (then Dawnay Day Carpathian) for £25.5 mln in 2005.
