Last checked at 1 Jul 2009 09:28
| Date: | 1 July 2009 |
| On behalf of: | Carpathian PLC ('Carpathian' or 'the Company') |
Carpathian PLC
Acquisition of plot adjoining Promenada Centre in Warsaw
Carpathian PLC is pleased to announce that it has acquired 100% of the share capital of Poldrim Sp Z.o.o ('Poldrim') for EUR 6.167 million in cash. Poldrim owns a 5,500 sq m plot of land comprising 2,300 sq m of exisiting retail space anchored by a Go Sport unit and 61 car parking spaces. Poldrim currently generates annual net operating income of approximately €395,000, equating to a yield on acquisition of approximately 6.4%.
The "Poldrim" property adjoins and completes the ownership of Carpathian's Promenada shopping centre in Warsaw, Poland, one of the Company's largest and most valuable assets. Promenada now comprises over 55,000 sq m of prime retail and office space. This is a strategic acquisition for Carpathian, unlocking marriage value and future asset enhancement and new development opportunities, benefitting the value and liquidity of the larger Promenada project.
The acquisition forms an important step in the Company's stated intention to extend and restructure its debt facilities with Hypo Real Estate, which was announced in the debt financing section of the Company's preliminary results statement, released on 1 May 2009. Refinancing discussions with Hypo Real Estate are progressing well and the Company will make a further announcement on this in due course.
Commenting on the acquisition, Paul Rogers, Director of Carpathian Asset Management, Property Adviser to Carpathian PLC, said:
"The acquisition of this additional property is an excellent step for Carpathian which will provide future opportunities to enhance the Promenada Centre, which despite wider economic concerns continues to see increased turnover figures from tenants and lease renewals at substantially increased rental levels. This is one of a number of achievements planned to maximise the value of the portfolio and deliver long-term benefits to shareholders."
Enquiries:
| Carpathian PLC | |
| Rory Macnamara, Non-Executive Chairman | Via Redleaf Communications |
| Carpathian Asset Management Limited | 020 3178 2892 |
| Paul Rogers / Balazs Csepregi | ir@carpathianam.com |
| Collins Stewart Europe Limited | 020 7523 8350 |
| Bruce Garrow | |
| Redleaf Communications | 020 7566 6700 |
| Emma Kane / Adam Leviton / Henry Columbine | carpathian@redleafpr.com |
Notes to Editors:
| - | Carpathian was created in 2005 for the purpose of investing in Central and Eastern European commercial real estate |
| - | Carpathian's primary focus is on shopping centres, supermarkets and retail warehousing in several countries in Central and Eastern Europe being currently Croatia, the Czech Republic, Hungary, Poland, Romania, Lithuania and Latvia |
| - | Carpathian listed on AIM in July 2005. |
| - | Carpathian Asset Management Limited ("CAM") is the Property Investment Adviser to Carpathian. It is responsible for identifying acquisition targets, managing transactions and portfolios and development activity within Central and Eastern Europe. The Company holds a 50 per cent. interest in CAM, the remaining 50 per cent. is held by UK Real Estate Management Limited (a company wholly owned by Paul Rogers and Massimo Marcovecchio) |