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Conygar hit by asset writedowns – but all is not lost

Simon Thompson: Hefty down valuations at its flagship site hit the latest results, but there is potential for a recovery
Conygar hit by asset writedowns – but all is not lostPublished on January 7, 2025
  • Pre-tax loss of £34mn due to asset writedowns
  • Net asset value down 35 per cent to £61.1mn (102.5p)
  • Property portfolio valued at £118mn
  • Net debt of £56.1mn
  • 58 per cent discount to NAV

Annual results from property group Conygar (CIC:42.5p) were hit for the second year running by sizeable down valuations on its flagship The Island Quarter (TIQ) development in Nottingham.

In particular, the carrying value of the Winfield Court 693-bed privately built student accommodation (PBSA) block was written down by £19mn to £70.5mn. In part, this reflected the higher yield used by surveyors to value the property, but it mainly reflected subdued lettings. In fact, the newly completed block was only 54 per cent occupied at the start of the 2024-25 academic year, which meant that its net operating income (NOI) of £1.5mn was well below target.

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