(Alliance News) - JZ Capital Partners Ltd said Monday it has begun receiving preliminary appraisals for its real estate portfolio assets for the valuation period as of February 29.
JZ Capital shares closed 5.8% lower in London at 292.00 pence each on Monday.
The company said certain newly received appraisals represent materially lower valuations, in line with its previously announced expectation in its interim results, published in November.
JZ Capital said the Fulton Mall and Design District appraisals indicate that the company will likely experience a write-down of its real estate net asset value of approximately USD102 million from its December 31 net asset value.
Including three other newly received appraisals, which in total represent an additional approximately USD6.0 million write-down, the company said it expects to take a provision of approximately USD108 million in its January 31 net asset value, subject to receiving additional appraisals in the coming two weeks.
As a consequence of these newly received appraisals, the company said its investments in Fulton Mall and Design District will be written down to nil.
JZ Capital said the valuation process as of February 29 is unfinished, and the company has yet to receive several appraisals "from properties which represent a significant portion" of its net asset value.
By Loreta Juodagalvyte; loretajuodagalvyte@alliancenews.com
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Jz Capital (JZCP)