Property Recycling says that low interest rates are not having a positive effect on the property market.
The brownfield land developer did not sell any properties in 2008. The income in 2008 came from property rentals.
Property Recycling did buy a 121 hectare freehold site near Newmarket for £2.05m and another site at Welford in Northamptonshire for £580,000. The latter has planning permission for a range of motorway services.
The company’s net asset value is £10.8m. At 20p a share, Property Recycling is capitalised at £7.24m - a 33% discount to NAV. Net debt is £2.2m and is manageable.
Executive chairman Paul Rackham does not expect there to be any chance of sales at acceptable prices in this financial year. Property Recycling will minimise expenses and hopes to retain as much rental income as it can.
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