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Friday 31 August, 2007

Intnl. Real Estate

Subsidiary's Results

International Real Estate Plc
31 August 2007

   International Real Estate Plc / Epic: IRE / Index: AIM / Sector: Property



31st August 2007

                         International Real Estate Plc

                             ('IRE' or the 'Group')

                      Interim Results for Dutch Subsidiary



International Real Estate Plc, the AIM traded European property investment and
development company, has today published the interim report for the six months
to 30 June 2007 for I.R.E. German Property Holding B.V. ('GPH') in accordance
with the requirements of the Stockholm and Copenhagen Stock Exchange.



Summary



I.R.E. German Property Holding B.V. issued a bond in a private placement of €
32.0 million as per 1 March 2007 that subsequently was listed on the Stockholm
and Copenhagen Stock Exchanges in May 2007. However this first interim report is
based on six months figures for the period 1 January to 30 June 2007.

The consolidated result before tax for GPH was a loss of approximately €186,000
compared to a loss of approximately €676,000 in the corresponding six-month
period 2006. Net operating income for the first six months amounts to
approximately € 3.1 million and the equity of GPH per June 30, 2007 amounts to
approximately € 15.8 million.

GPH owns 24 properties in Germany, in Berlin and Magdeburg with a total of
119,144 square metres. The main part (approximately 80.2 per cent.) is
residential, offices (approximately 12.1 per cent.) and retail and others
(approximately 7.7 per cent.).

The consolidated book value of the properties at June 30, 2007 amounts to
approximately € 108.6 million.



For further information please visit www.IREplc.com or contact:

Rolf L Nordstrom     International Real Estate Plc     Tel: +44 (0) 20 7495 1480

Daniel Akselson      International Real Estate Plc     Tel: +31 (0) 653 304 590

David Anderson       KBC Peel Hunt Ltd                 Tel: +44 (0) 20 7418 8900

Oliver Stratton      KBC Peel Hunt Ltd                 Tel: +44 (0) 20 7418 8900

Hugo de Salis        St Brides Media & Finance Ltd     Tel: +44 (0) 20 7242 4477



Financial review



GPH comparative figures constitute the period 1 January 2006 to 30 June 2006.



Its result before tax amounts to a loss of approximately €186,000 compared with
a loss of approximately €676,000 in the comparative period.



Revenue for the first six months amounts to € 4.97 million. On 30 June 2007 the
equity of GPH amounts to €15.8 million.



GPH owns 24 properties in Germany, in Berlin and Magdeburg with a total of
119,144 square metres. The main part (approximately 80.2 per cent.) is
residential, offices (approximately 12.1 per cent.) and retail and others
(approximately 7.7 per cent.).The book value of the properties as of 30 June
2007 amounts to approximately €108.6 million. Value adjustments of properties
have been recognised in the financial statement item value adjustments.



Accounting policies

This interim report has been prepared in accordance to the International
Financial Reporting Standards (IFRS) as well as additional requirements of the
Stockholm and Copenhagen Stock Exchange on the financial reporting of companies
with listed bonds.



Events after the end of the financial period

Management is not aware of events occurring after 30 June 2007 which would be
expected to materially influence the financial position or outlook of GPH.



Interim consolidated financial statements


                                                              January 1, 2007            January 1, 2006
Income statement                                              - June 30, 2007            - June 30, 2006
                                                                     6 months                   6 months

Revenue                                                                 3,088                      1,973
Operating expenses                                                      (846)                      (388)
Value adjustments                                                         199                          0
Net operating income (NOI)                                              2,441                      1,584

Administrative expenses                                                 (112)                      (509)
Result before depreciation (EBITDA)                                     2,328                      1,076
Depreciation                                                             (51)                      (817)
Result before interest and tax (EBIT)                                   2,277                        259

Net financials                                                        (2,463)                      (935)
Result before tax (EBT)                                                 (186)                      (676)
Result third parties                                                       29                       (27)
Tax on result for the period                                              (1)                       (31)
Result after tax                                                        (158)                      (734)



Balance sheet

Assets                                                          June 30, 2007              June 30, 2006
Investment properties                                                 108,595                     58,140
Fixed asset investments                                                 1,751                        325
Receivables                                                             6,835                      2,553
Prepayments                                                               944                      1,213
Cash                                                                    1,419                      1,559
Total assets                                                          119,543                     63,790

Equity and liabilities
Equity                                                                 15,835                    (2,182)
Share third parties                                                       431                       (14)
Deferred tax                                                            6,363                          0
Long-term liabilities                                                  86,867                     42,841
Short-term liabilities                                                 10,047                     23,146
Total equity and liabilities                                          119,543                     63,790

Statement of changes in equity



                                                              January 1, 2007            January 1, 2006
                                                              - June 30, 2007            - June 30, 2006

Equity at beginning of period                                           8,704                    (1,449)
Increase of sharepremium reserve                                        7,239                          0
Increase in sharecapital                                                   50                          0
Loss for the period                                                     (158)                      (734)

Equity at end of period                                                15,835                    (2,182)



Cashflow statement


                                                               January 1, 2007            January 1, 2006
Cashflow statement                                             - June 30, 2007            - June 30, 2006
                                                                      6 months                   6 months

Operating result                                                         2,277                        259

Total depreciation                                                          51                        817
Addition to                                                                307                          0
provision
Depreciation / movement provisions                                         358                        817

Movement short-term receivables                                          6,496                      2,211
Movement short-term liabilities                                       (18,611)                      5,906
Movement working capital                                              (25,107)                      3,695

Operating cash flow                                                   (22,472)                      4,771

Paid and received interest                                               2,463                        935
Paid tax                                                                     0                         31

Other operating activities                                             (2,463)                      (966)

Cashflow from operating activities                                    (24,935)                      3,805

Intangible fixed assets                                                  1,222                    (3,549)
Tangible fixed                                                           9,396                     18,401
assets
Cashflow from investments                                             (10,618)                   (14,852)

Withdrawal loans                                                        32,677                     12,375
Redemption of loans                                                      7,428                        113
Equity contribution                                                      7,289                          0
Cashflow from financial activities                                      32,538                     12,262

Movement in cash                                                       (3,015)                      1,215






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