Link: Jarvis pushes for restructuring sell-off
When completed, the charge will result in a total reduction in net operating assets of its property division of approximately 145m euros (£101m).
P&O owns a 47.5% stake in HTC, the German property group that owns the buildings.
Under 2004 restated IFRS figures, P&O would have to increase its consolidated debt by 200m euros (£139m) and increase net operating assets by 105m euros (£73m). The sale of this property will negate both of these figures, however, it will write off shareholder loans provided to HTC, resulting in the £59m impairment charge.
Robert Woods, chief executive at P&O, said: ‘HTC is a sound development but has been our most challenging property project because of the poor market conditions in Germany. Although there is an up-front cost, we are pleased to have found a way of exiting the project while retaining some upside potential.
‘We will continue to withdraw from our property business.’