Property company Dunloe Ewart said this evening it plans to sell property worth approximately euro 156 million, adding that it expects a euro 32.6 million pretax profit on original cost from the disposals.
It plans to sell part of its Irish, Northern Irish and most of its Scottish and English investment portfolio. In total there are 20 properties being disposed of, of which four are in Northern Ireland, three in England, nine in Scotland and four in Ireland. In the year ended December 31st, 2000, the rental income earned from these properties amounted to euro 9.2 million.
The group said it will hold an EGM on May 21st to vote on the proposed disposal and a tender offer to repurchase 34 million shares in the company at euro 0.55 per share, totalling euro 18.7 million.
The repurchase price of euro 0.55 represents a premium of 45 per cent to the closing share price on Wednesday, it said.
Dunloe reported pre-tax profit of euro 9 million for the year to December 31st compared with euro 25.7 million in the previous year and EPS of euro 1.79 versus euro 5.04.
Operating profit for the period fell to euro 22,846 from euro 34,662.
Dunloe noted the poor sentiment towards property companies in 2000 in the small cap sector, and concerns regarding the general property market, are likely to continue to take centre stage in 2001. Dunloe closed this evening on
AFP