CURRENCY MOVEMENTS dented the value of China Real Estate Opportunities’ (Creo) properties in the first six months of the year, but the portfolio still managed to earn a 12-month increase.
The Treasury Holdings-backed company reported yesterday that its properties were valued at 9.47 billion Chinese yen or £835.9 million on June 30th. The London-listed company’s net asset value (Nav) per share was £10.62 at the end of June, an increase on the £9.74 recorded 12 months earlier.
The company said that three-quarters of this decline was down to the fact that sterling strengthened against the local currency during the period. Richard David, managing director of Treasury Holdings China, told The Irish Times that part of the increase in its value during the second half of last year was attributable to the Chinese yen’s strength against sterling.
Creo’s properties include completed office blocks and a shopping centre in Shanghai, a mixed development at Tsing Dao, China’s largest port, and a business park in Beijing. Mr David said that its portfolio had also been hit by a fall in values at Tsing Dao.
However, he pointed out that China’s strong economy, which is on track to achieve 8 per cent growth this year, has meant that its investment properties are continuing to perform well.
