CITY PACIFIC POSTS LOSSES FOR 2008 FINANCIAL YEAR.(Financial report)

SYDNEY, Sept 1 Asia Pulse - Property investor and fund manager City Pacific Ltd (ASX:CIY) today reported a $A139.53 million ($US119.41 million) bottom line loss for the last financial year, after it was forced to make writedowns on some its assets and investments.

City Pacific said ructions in the property market due to the global credit crisis had impacted its business, resulting in the revaluations.

The group made a net loss of $139.53 million for the year ended June 30, down from a net profit of $73.21 million in the previous year.

Its net operating profit for 2007/08 was $55.46 million, down from $133.42 million.

"Despite the core underlying fundamentals of residential property remaining solid in the key areas where City Pacific has investments, consumer uncertainty created by the global credit crisis and a succession of interest rate rises has resulted in a weakening of property values, which has in turn had a negative impact on our overall result," managing director and chief executive Phil Sullivan said.

"The market adversity over the last 12 months has clearly had an impact on our business."

For the year, City Pacific booked impairment losses and writedowns of $186 million.