Adams Regulatory News (ADA)

15 Aug 2007 07:01

Dawnay, Day Carpathian PLC15 August 2007 Dawnay, Day Carpathian PLC ("DDC" or the "Company") Announces the Acquisition of a multi-purpose development site in Cluj-Napoca, 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 multi purpose development site for €14.3 million in Cluj-Napoca,Romania (the "Cluj Transaction"). This acquisition is the first of the pipelinedeals identified by the Company's asset manager, Dawnay, Day PanTerra Limited(the "Property Advisor") at the time of the second fund raising completed in May2007. Cluj-Napoca Development The Cluj-Napoca development is located in the city centre and covers a totalsite area of 19,400 sqm. The planned development of over 40,000 sqm will be aretail and entertainment complex with an office element of over 8,000 sqmincluded, with the potential to incorporate a hotel. Cluj-Napoca is one of thelargest cities in Romania, situated approximately 440 km north-west ofBucharest, in the Somesul Mic Valley, in the historic province of Transylvania.With nearly 300,000 inhabitants Cluj-Napoca is best known for its importantacademic, cultural and industrial centres. The site is located in the centre of the town on one of the main arterial roadsthrough the city which connects the Eastern districts to the city centre;attracting a high volume of traffic during the day. The site is acquired with aconsented building permit, and construction is expected to commence in March2008. The estimated cost of construction is €60 million and the project isexpected to be completed within approximately 18 months. Based on an incomeyield of 7%, this puts the estimated project value upon completion at€111million. The acquisition is a share purchase transaction from a Dutch holding company inwhich members of the Dawnay, Day Group have a controlling interest andrepresents the Company's second investment in Romania and the fourteenthtransaction overall. The company has been purchased with financing, on a 65%loan to value basis, arranged by the Property Advisor and this debt shall berefinanced with a construction loan when the project commences next year. Theleasing of the space, arranged through S.C. Cushman & Wakefield Consulting ActivS.R.L., is well under way. Under the original terms set out at the time of the Company's IPO, following theacquisition, members of the Dawnay, Day Group have agreed to subscribe for anestimated €1.5 million of new ordinary shares in DDC, representing profits fromthe Cluj Transaction. Commenting on the acquisition, Rupert Cottrell, Chairman of Dawnay, DayCarpathian PLC said "This represents an excellent transaction for DDC and anopportunity for us to establish ourselves further in the Romanian market throughthe first of a number of development projects. We feel that the country as awhole benefits from strong growth potential but with a lack of good retailstock. The combination of these factors fully supports development opportunitiessuch as this." 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