Adams Regulatory News (ADA)

15 Oct 2007 07:01

Dawnay, Day Carpathian PLC15 October 2007 Dawnay, Day Carpathian PLC ("DDC" or the "Company") Announces the Acquisition of multi-purpose development sites in Baia Mare, Romania Dawnay, Day Carpathian PLC, the retail property investment company establishedto invest in Central and Eastern Europe, is pleased to announce that it hasacquired a third multi-purpose development site for a value in excess of €6.5million in Baia Mare, Romania (the "Baia Mare Development" or "Baia MareTransaction"), to be funded out of existing cash resources. This acquisition isthe third of the four pipeline deals identified by the Company's propertyinvestment manager, Dawnay, Day PanTerra Limited (the "Property Advisor") at thetime of the second fund raising completed in May 2007. Baia Mare Development Baia Mare is the administrative City of the county of Maramures, and one of thelargest cities in Romania. It is significant in the region of the north-west interms of commerce, trading, culture and in its proximity to the Hungarianborder. The site is approximately 58,900 sqm and the planned development isestimated at 34,000 sqm gross lettable area and will comprise a retail andentertainment complex. The plot is situated on the western edge of town between two major motorways.The site benefits from a large catchment area, good access and transport linksfrom the important areas of the city. A preliminary planning consent (or PUD) isin place, and construction is expected to commence in September 2008. Theestimated gross development value of the project is expected to be €68 million,to be financed through a mixture of equity and debt in line with previoustranasctions. The project is expected to be completed within approximately 23months. Based on a capitalisation yield of 7%, this puts the estimated projectvalue upon completion at €89 million. This development is also to be undertaken in conjunction with a local partnerdescribed in the previous announcement dated 28 September 2007. The jointventure has been arranged by the Property Advisor to operate in the local marketas Atrium Developments. It is also intended that Atrium joint venture willinclude the Cluj-Napoca and Arad transactions previously announced on 15 August2007 and 28 September 2007 respectively. The acquisition is a share purchase transaction from two holding companies inwhich members of the Dawnay, Day Group have a controlling interest andrepresents the Company's fourth investment in Romania and the seventeenthtransaction overall. The leasing of the space, arranged through Cushman andWakefield, is under way and progressing well. Following the acquisition, members of the Dawnay, Day Group have agreed tosubscribe for an estimated €1 million of new ordinary shares in DDC,representing profits from the Baia Mare Transaction. Commenting on the acquisition, Rupert Cottrell, Chairman of Dawnay, DayCarpathian PLC said "DDC is confident in the development opportunities in theretail market in Romania and is pleased to announce its third such project. Thisinvestment will further underline our presence in the market and enable us tobenefit from economies of scale with relation to the construction anddevelopment process." Enquiries: Dawnay, Day PanTerra Peter Klimt 020 7834 8060 Paul Rogers Balazs Csepregi Cardew Group Tim Robertson 020 7930 0777 Catherine Maitland Numis Securities Bruce Garrow 020 7260 1000 Anthony Richardson This information is provided by RNS The company news service from the London Stock Exchange