NAV (net asset value) per share before deferred tax stood at Euro 19.34, a 13% increase compared to Q4 2005, and 42% year-on-year. The main drivers of the NAV increase in Q1 2006 were:
- the completion of a BOT retail and office development at Complex I at Delta Falirou,
- the completion of an additional part of the building at 49 Kifissias Avenue and a new sale and leaseback contract signed NAV per share after deferred tax stood at Euro 15.43, a 13% increase over Q4 2005 and a 37% year-on-year increase. BVIC Group's investment properties for Q1 2006 were Euro 1,021 m, up 13% from Q4 2005 and 46% year-on-year. BVIC Group's revenue totalled 13m in Q1 2006, a 35% increase compared to Q1 2005, based on a 10% increase in rental revenue mainly from new lease agreements signed in 2005, as well as the sale of residential developments which contributed Euro 2m. BVIC Group's EBITDA (earnings before interest, tax, depreciation and amortisation) stood at Euro 82m, a 77% increase over Q1 2005. This was based mainly on a net gain from fair value adjustment on investment property of 80m in Q1 2006, a 82% increase compared to a 44m net gain in Q1 2005. Profit after tax for the quarter was Euro 59 million, a 94% increase compared to Euro 30 million during Q1 2005.
Delta Falirou Complex I:
Under a BOT agreement signed in Q1 2006, BVIC Group will lease Building Complex I at Delta Falirou for up to 49 years. The complex consists of two buildings with a total lettable area of 9,640 sqm consisting of office and retail space, as well as 658 parking spaces. BVIC has already leased 60% of the space, to LG Electronics, Norton Rose and Village Roadshow. These lease agreements bring the total yearly lease income for the 60 % of the lettable area leased thus far, to 1,620,000. The lease agreements include an annual adjustment on the basis of Greek CPI plus 100 bps, whereas the BOT expense for the Group is based on an annual adjustment to Greek CPI. The BOT at Delta Falirou was valued on a net basis at Euro 73m, contributing Euro 2.14 in NAV per share for the period ended 31 March 2006. Q2 2006 Delta Falirou Complex II Completion:
Furthermore, completion of the Building Complex II, in Q2 2006 will contribute approximately Euro 2.0 in NAV per share, on a net gain from investment property revaluation surplus, based on the current sublease agreements signed for 90% of the lettable area and all of the parking spaces. 49 Kifissias Avenue Sale and Leaseback with Cyprus Leasing:
BVIC completed the development of an additional part of the retail development at 49 Kifissias Avenue, in January 2006. The Group has committed 82% of the 9,500sqm of lettable area and all of the 548 parking spaces, and has delivered almost 5,000 sqm of retail space to the anchor tenant Media Markt. The Group signed a third sale and leaseback agreement for 49 Kifissias, with Cyrpus Leasing for 5m, bringing total sale and leaseback financing for 49 Kifissias to 46m. The 12-year sale and leaseback agreement covers 1,185 sqm of office space and 10 parking spaces, which is currently vacant.
340 Syngrou Avenue:
The Group signed a final contract to purchase 99% of the shares of the company 'ELFINKO S.A'. The latter owns a land plot of approximately 5,850 sqm at 340 Syngrou Avenue in the municipality of Kallithea - Athens. BVIC plans to develop a commercial building, on the aforementioned land plot, of over 14,000sqm of total lettable area, including storage as well as 400 parking spaces. The estimated total cost, including plot acquisition and development cost of the project, is approximately Euro 40 million. We are confident that 340 Syngrou Avenue, will turn out to be another highly successful commercial centre.