Last checked at 18 May 2011 10:32
Date: | 18 May 2011 |
On behalf of: | Carpathian PLC ("Carpathian", the "Company" or the "Group") |
Immediate release |
Carpathian PLC
Sale of the Osowa Shopping Centre in Gdansk, Poland completed
Carpathian Plc (AIM: CPT), the commercial property investment company focused on retail properties within Central and Eastern Europe, today announces that the sale of the fourth and last remaining asset in the Blue Knight portfolio - Osowa shopping centre in Gdansk - has been completed for a consideration of €34.5 million in cash. The purchaser is the Pradera Central & Eastern Fund.
The sales price includes a €3 million retention based on resolving questions related to the occupancy permit within the next 12 months. The initial net equity released after transaction costs and before taxes is expected to be approximately €9.8 million. Further to this, the financing bank, Deutsche Pfandbriefbank will release retained funds of €8.9 million previously held from the sale of the first three assets in the Blue Knight portfolio and Promenada.
The net rental income of the property before corporate costs was €3.1 million per annum at the date of transaction and the carrying value of the property as at 31 December 2010 was €34.5 million.
In line with the Company's strategy, the Board intends to distribute the cash received from asset sales to shareholders. The cash realised from the above transaction, together with previously announced and any future sales will need to be repatriated from the asset owning companies in the respective jurisdictions to Carpathian PLC. The Company has been progressing a corporate restructuring in order to facilitate this repatriation and optimise the corresponding deferred tax liabilities in all its jurisdictions. This process requires several months to complete and so far the progress made is in line with the Group's plans.
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Enquiries:
Carpathian PLC | |
Rory Macnamara, Non-executive Chairman | Via Redleaf Communications |
CPT LLP | 020 7529 6413 |
Paul Rogers/Balazs Csepregi | ir@carpathianam.com |
Collins Stewart Europe Limited | 020 7523 8350 |
Bruce Garrow | |
Redleaf Communications | 020 7566 6700 |
Mike Ward | 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 Croatia, the Czech Republic, Hungary, Poland, Romania, Lithuania and Latvia |
- | Carpathian was admitted to trading on AIM in July 2005. |
- | CPT LLP is the Property Investment Adviser to Carpathian. CPT LLP owns 100% of Carpathian Asset Management Limited ("CAM"). CAM, which was previously owned as to 50% by the Company, became fully externalised when the Company and CPT LLP implemented the new portfolio management agreement on 1 March 2010. CAM, together with its parent undertaking, CPT LLP, is responsible for managing the core portfolio of assets and transactions within Central and Eastern Europe.
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