Dutch property firm Corio has confirmed it will sell off its office and industrial property portfolio. The move follows an investigation into the sell-off announced on 31 August. Corio said it still plans to complete the sale in the first half of 2008. The company has hired Jones Lang Lasalle as its advisor for the selling process.
Dutch property firm Corio has confirmed it will sell off its office and industrial property portfolio. The move follows an investigation into the sell-off announced on 31 August. Corio said it still plans to complete the sale in the first half of 2008. The company has hired Jones Lang Lasalle as its advisor for the selling process.
Corio has invested capital of around EUR 6 bn, with a further EUR 2 bn worth of projects in the pipeline. At least 80% of the portfolio is already invested in shopping centres, the company said.
Separately, Corio reported that net profit for the nine month to end September came in at EUR 426 mln, a rise of 22.6% on the year-earlier period. Earnings per share rose to EUR 6.44 from EUR 5.25 in the same period of 2006.
Net rental income rose 11.1% to EUR 238.6 mln, as exploitation costs fell by EUR 0.6 mln to EUR 34.6 mln. Earnings before interest and tax (EBIT) were up EUR 23.9 mln, or 12%, at EUR 220.6 mln. The direct result increased slightly, by 2%, to EUR 149.2 mln, as gains in rental income, and lower management costs and corporate tax were largely wiped out by higher financing costs.
Due to the rise in financing costs, Corio said it expects the direct result for the full year 2007 to be unchanged from 2006.
