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Friday 29 February, 2008

Intnl. Real Estate

GPH 2007 Annual Report

International Real Estate Plc
29 February 2008

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

29 February 2008



              International Real Estate Plc ('IRE' or 'the Group')

                    Annual Report 2007 for Dutch Subsidiary



International Real Estate Plc, the AIM traded European property investment and
development company, has today published the annual report for the 12 month
period to 31 December 2007 for its Dutch subsidiary I.R.E. German Property
Holding B.V. ('GPH') in accordance with the requirements of the OMX Nordic
Exchange Stockholm and OMX Nordic Exchange Copenhagen.



Summary



  • GPH issued a bond in a private placement of € 32.0 million as per 1 March
    2007 that was subsequently listed on the OMX Nordic Exchange Stockholm and
    OMX Nordic Exchange Copenhagen in May 2007.
  • The consolidated result after tax for GPH was a loss of approximately €
    0.3 million compared to a profit of € 10.4 million in the corresponding
    period 2006.
  • Net operating income for 2007 amounts to approximately € 5.7 million and
    the equity of GPH as at 31 December 2007 amounts to approximately € 15.6
    million.
  • GPH owns 24 properties in Germany (Berlin and Magdeburg) totalling 119,144
    square metres - of which approximately 80.2 per cent. is residential, 12.1
    per cent. offices and 7.7 per cent. retail and others.
  • The consolidated book value of the properties as at 31 December 2007
    amounts to approximately € 117.6 million compared to approximately € 99.3
    million at 31 December 2006.



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 7236 1177


Financial review

GPH's comparative figures constitute the period 1 January 2006 to 31 December
2006.

The result after tax amounts to a loss of approximately € 0.3 million compared
with a profit of approximately € 10.4 million in the comparative period.

Revenue for the period  amounts to € 7.6 million. On 31 December 2007 the equity
of GPH amounts to approximately € 15.6 million.

GPH owns 24 properties in Germany (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 at 31 December 2007 amounts to € 117.6
million. Value adjustments of properties have been recognised in the financial
statement item value adjustments.


Accounting policies

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


Events after the end of the financial period

Management is not aware of any events occurring after 31 December 2007 which
would be expected to materially influence the financial position or outlook of
the Group.


Income statement


                                                             Jan 1 - Dec 31 2007             Jan 1 - Dec 31 2006
                                                                           €'000                           €'000

Net revenue                                                                7,593                           4,120
Operating expenses                                                       (2,489)                         (2,480)
Value adjustments                                                            567                          15,138
Net operating income (NOI)                                                 5,671                          16,778

Administrative expenses                                                    (216)                           (926)
Result before depreciation (EBITDA)                                        5,455                          15,852
Depreciation                                                               (115)                            (54)
Result before interest and tax (EBIT)                                      5,340                          15,798

Net financials                                                           (5,588)                         (4,983)
Result before tax (EBT)                                                    (248)                          10,815
Result third parties                                                        (22)                           (443)
Tax on result for the period                                                 (9)                             (7)
Result after tax                                                           (279)                          10,365


Balance sheet


                                                             Jan 1 - Dec 31 2007             Jan 1 - Dec 31 2006
                                                                           €'000                           €'000

Assets
Investment properties                                                    117,610                          99,260
Fixed asset investments                                                      916                             652
Receivables                                                                1,877                             339
Prepayments                                                                1,698                             837
Cash                                                                       5,054                           4,434
Total assets                                                             127,155                         105,522

Equity and liabilities
Equity                                                                    15,555                           9,544
Share third parties                                                          409                             387
Deferred tax                                                               3,095                           5,422
Long-term liabilities                                                     97,948                          61,617
Short-term liabilities                                                    10,148                          28,552
Total equity and liabilities                                             127,155                         105,522



Statement of changes in equity


                                                             Jan 1 - Dec 31 2007             Jan 1 - Dec 31 2006
                                                                           €'000                           €'000

Equity at beginning of period                                              9,544                         (1,514)
First adoption IFRS                                                            0                             693
Increase of sharepremium reserve                                           6,240                               0
Increase in sharecapital                                                      50                               0
Result for the period                                                      (279)                          10,365

Equity at end of period                                                   15,555                           9,544




Cashflow statement


                                                            Jan 1 - Dec 31 2007             Jan 1 - Dec 31 2006
                                                                          €'000                           €'000

Operating result                                                          5,340                          15,799

Total depreciation                                                          115                              53
Addition to provision                                                   (2,327)                           5,422
Depreciation / movement provisions                                      (2,212)                           5,475

Movement short-term receivables                                           2,400                           (365)
Movement short-term liabilities                                        (18,404)                          11,246
Movement working capital                                               (20,804)                          11,611

Operating cash flow                                                    (17,676)                          32,885

Paid and received interest                                                5,587                           4,984
Paid tax                                                                      9                               7

Other operating activities                                              (5,596)                         (4,991)

Cashflow from operating activities                                     (23,272)                          27,894

Intangible fixed assets                                                     371                         (3,626)
Tangible fixed assets                                                    18,358                          59,161
Cashflow from investments                                              (18,729)                        (55,535)

Withdrawal loans                                                         47,283                          31,146
Redemption of loans                                                    (10,952)                           (108)
Equity contribution                                                       6,290                               0
First adoption IFRS                                                           0                             693
Cashflow from financial activities                                       42,621                          31,731

Movement in cash                                                            620                           4,090






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