Last checked at 12 Jan 2009 07:00
| PRESS ANNOUNCEMENT | |
| EMBARGOED FOR 0700HRS | |
| 12 January 2009 | |
| Carpathian PLC ("Carpathian" or the "Company") | |
| PROFIT ON SALE OF VARYADA | |
Carpathian is pleased to announce that the profit calculation, following completion of the sale of the Varyada Shopping Centre ("Varyada") for £46.7 million announced on 30 December 2008, has now been finalised.
The overall pre-tax profit achieved during the lifetime of ownership (November 2005 to December 2008) was approximately £11.2 million, of which capital profit made up £10.0 million and revenue profit equated to £1.2 million. Correspondingly, the sale generated an internal rate of return of 63.75% and the price represented a 3.3% discount to the value that Varyada was held, at subsidiary company level, as at 31 December 2007.
The Company will not incur tax on capital profits although corporation tax will be incurred on the revenue profits at a rate of approximately 7%.
- Ends -
| Enquiries: | |
| Carpathian PLC | Via Redleaf Communications |
| Rory Macnamara (Non-executive Chairman) | |
| Carpathian Asset Management Limited | 020 3178 2892 |
| Paul Rogers | |
| Collins Stewart Europe Limited | 020 7523 8000 |
| Bruce Garrow | |
| Redleaf Communications | 020 7566 6700 |
| Emma Kane Samantha Robbins | 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's principal objective is to provide shareholders with a regular and significant dividend income, derived from rental income. In addition, there is potential for capital appreciation from the sale, redevelopment and refinancing of its properties. |
| - | 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. of which is held by UK Real Estate Management Limited (a company wholly owned by Paul Rogers and Massimo Marcovecchio). |