China Real Estate Opportunities - Preliminary results for the twelve months ended 31 December 2009
8th March 2010

China Real Estate Opportunities plc (“CREO” or the “Company”), is an AIM-listed company established to acquire investment and development properties in China.

Highlights

• CREO’s portfolio was valued at CNY9.19 billion as at 31 December 2009
  (GBP£836.9 million), up 4% in CNY terms for the 6 months from 30 June 2009 and up 7% in sterling terms since 30 June 2009.
  
  
• European Public Real Estate net asset value per share (“EPRA NAV per share”) declined by 14% in the 12 month period from 31 December 2008 largely due to currency movements but the second half of the year saw a 7% upturn in this measure from £10.62 as at 30 June 2009 to £11.37 as at 31 December 2009.
  
  
• Rental income was stable in local currency in the period despite lower average occupancy across the portfolio as the Company continued to achieve average rental uplifts of up to 5% on a square metre basis.
  
  
• Significant progress was made against the Company’s strategic objectives to
  refinance investment assets and strengthen its capital position through the disposal of non-core holdings:

  - A multi-currency three year loan equivalent to £27.72 million on improved terms was agreed for the refinancing of Treasury Building

  - The Company completed the sale of its effective 5% minority stake in the City Center 5 Development, for £8.6 million in June 2009. This represents an 8.6% premium to the most recent published valuation in local currency as at 31
  December 2008.

  - Between November 2009 and February 2010 the Company disposed of its entire holding in RREEF, a Hong-Kong listed REIT for HKD118.28 million (£10.18m based on current exchange rates), a return of 36.9% on our original
  investment in HKD terms.

  - The Company disposed of its 50% stake in the Tangdao Bay Development based on a property value of RMB1.389bn representing a 10.9% premium to the most recent independent valuation in June 2009. Net cash proceeds from
  the transaction amount to £35.6 million at today’s exchange rates and will be received upon the completion of the standard regulatory procedures for the offshore repatriation of proceeds of domestic asset sales.

• Including proceeds from the Tangdao Bay disposal, cash holdings as at 31 December 2009 were just over £80 million.
  
  
• The Company has made a non-binding submission to the Singapore Exchange (“SGX”) to secure approval for admission to Singapore’s internationally recognised main board as a Business Trust so as to position the Company closer to its asset base and potentially re-rate the shares in line with CREO’s peer group listed in Asia. Conversion to a Singapore Business Trust, which would be subject to shareholder approval, would result in the Company being delisted from AIM.
  
  
• The Company has today published a circular to shareholders setting out the details of a Tender Offer to purchase shares at £3.30 per Share. The Company has invited all shareholders to tender shares and has committed a maximum of £15 million from its own cash resources to repurchase tendered shares. The closing date for the tender is on Monday, March 22 2010. Real Estate Opportunities plc, a 16.9% shareholder of CREO, has irrevocably undertaken to tender its shares.
  
  
• In addition, Matrix Corporate Capital LLP has been mandated by the Company to seek to procure third party investors to purchase tendered shares in a placing at £3.30 per share.

Ray Horney, Chairman of CREO, commented:
“2009 has been an important year as the Company successfully applied its asset management expertise to deliver strong results in a competitive market whilst also positioning the Company for the future. Important milestones were reached such as the refinancing of the Treasury Building and the sale of the non-core stake in Tangdao Bay. The financial position of the Company has been considerably strengthened and the Board remains confident about the outlook for the Company”

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Preliminay results for the twelve months ended 31 December 2009

China Real Estate Opportunities - Interim Results For
The Six Month Ended 30 June 2009
25th August 2009

China Real Estate Opportunities plc (“CREO” or the “Company”), is an AIM-listed company established to acquire investment and development properties in China.

Highlights

• CREO portfolio was valued at CNY9.47 billion (GBP£835.9 million), down 6.2% in CNY terms for the 6 months to 30 June 2009. 

• The investment property portfolio, represented by City Centre, Central Plaza and Treasury Building declined only 1.2% on an aggregated basis in CNY terms.

• This has resulted in a 9% year-on-year uplift in the European Public Real Estate net asset value per share (“EPRA NAV per share”) from £9.74 as at 30 June 2008 to £10.62 as at 30 June 2009, and a decline of 20% for the six month period since 31 December 2008. Three quarters of the 20% decline is the result of the strength in sterling during the period.

• Rental income was stable in local currency in the period despite lower average occupancy across the portfolio as the Company continues to achieve average rental uplifts of up to 16% on a square metre basis.

• Since the period end, credit approval has been received for a £26.6 million five year loan with the Industrial and Commercial Bank of China (ICBC) for the refinancing of Treasury Building.

• CREO’s effective 5% minority stake in the City Centre 5 Development was successfully disposed of for CNY95 million (GBP£8.6 million), representing an 8.6% premium to valuation as at 31 December 2008.

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Interim Management Report For The Six Month Period To 30 June 2009

China Real Estate Opportunities - Final Results for the year to 31 December 2008
19th March 2009

China Real Estate Opportunities plc (“CREO” or the “Company”), an AIM-listed company established to acquire investment and development properties in China, today announces its final results for the year to 31 December 2008.

Highlights

• Period end independent valuations show an aggregate gross value for the portfolio in excess of £1,022 million at 31 December 2008, an increase of over 61 per cent year on year.

• Diluted EPRA net asset value per share of £13.24, which represents an increase of 59 per cent year on year and 36 per cent since 30 June 2008.

• Valuations of investment property and properties under development, after capitalised costs, increased by 6 per cent year on year, reaffirming the strength and continued growth of the CREO property portfolio.

• Gross rental income increased by 23 per cent year on year while average occupancy in the CREO portfolio was 92 per cent.

Ray Horney, Chairman of CREO, commented:
“The Board is pleased with the robust performance by the Company across its portfolio despite external economic challenges which will undoubtedly continue throughout 2009.  The CREO portfolio is well rented, whilst finance costs are well controlled and cash is being tightly managed to secure future working capital needs. We face the future with cautious optimism.”

China Real Estate Opportunities - Interim Management Report For
The Six Month Period To 30 June 2008
4th September 2008

• Increased development at Tangdao Bay from 180,000 square metres to 430,000 square metres.
• Construction of both the Beijing Logistics Park and the City Center Development is expected to commence in the fourth quarter of 2008.

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Interim Management Report For The Six Month Period To 30 June 2008

Annual Report and Accounts 2007

China Real Estate Opportunities Limited - Final Results for the period 5 December 2006 to 31 December 2007

China Real Estate Opportunities (“CREO” or the “Company”), an AIM-listed company established to acquire both investment and development properties in China, today announces its final results for the period ended 31 December 2007.

Highlights

• Period end independent valuations show a total value for the portfolio in excess of £600 million (at the 31 December 2007 exchange rate), an increase of over 11 per cent over valuation at admission (at the then prevailing exchange rates) on a like for like basis
  
• After adding back in the provision for deferred tax, adjusted net asset value of £8.23 per share at 31 December 2007 (flotation: £7.68 per share)
  
• Purchase of two further sites in Tangdao Bay after the period end adds an estimated 5.4 pence per share to the fully diluted net asset value, adjusted on a similar basis.

Ray Horney, Chairman of CREO, commented:
“CREO has made excellent progress since listing on AIM in July 2007. The Company has established a formidable presence in the Chinese property market as the owner of a diversified portfolio of investment and development properties. More importantly, the Company has secured a market position distinct from the majority of its competitors with its focus on commercial rather than residential real estate.”
“In the short to medium term we are well positioned to capitalise on the rental growth in the office and retail sectors which we expect to be driven by China’s strong underlying economic growth and fast growing retail demand. Leveraging Treasury Holdings’ experience as a high quality real estate developer and investor, CREO has established strong foundations.”

Click here to download the complete CREO Annual Report & Accounts 2007