Adams Regulatory News (ADA)

1 Feb 2007 07:02

Dawnay, Day Carpathian PLC01 February 2007 DAWNAY, DAY CARPATHIAN PLC Year end trading update and affirmation of 2007 dividend target Dawnay Day Carpathian PLC ("DDC" or the "Company") is pleased to provide atrading update on its activities for the 12 months ended 31 December 2006 and tocomment on the current investment pipeline and future dividend targets. The Company also announces that the asset manager Dawnay, Day Europe has changedits name to Dawnay, Day Panterra. There are no other changes involved other thanto the name. Since July 2005, DDC has completed 12 property transactions for a total value of£338 million, committing in aggregate £92 million of equity. DDC hassubsequently commissioned DTZ to provide an updated valuation on the portfoliofor the year end accounts which is anticipated to be completed within the nextmonth and is expected to produce an attractive valuation uplift. The Company isalso presently negotiating the completion of a number of transactions which willensure the fund is substantially invested within the next few months. After protracted negotiations, the Company has also now signed exclusive,detailed Heads of Terms, involving an initial equity commitment of approximatelya further £20 million, for the forward funding of a major city shopping centre,having an estimated gross development value of approximately £137 million. Theequity investment benefits from a prior return during the development phase(expected to be 30 to 36 months) and is secured against the ownership of thedevelopment site. On completion of the development the Company takes a majorityownership of the shopping centre in joint venture with the developer. Part ofthis funding commitment has been invested through DDC's direct purchase of partof the existing site comprising a 5,000 sq m vacant building at a price justunder £9 million, part funded with debt of £5.2 million. Substantial retailerinterest has been shown in the project. The Company's pipeline of future transactions remains strong and it is currentlyat varying stages of negotiation on transactions worth over £170 million. Inaddition, in the medium term, a substantial number of forward commitmentdevelopment project opportunities exist which the Company is seeking ways topursue. The existing portfolio of investments is performing to expectations, with afocus on asset management opportunities including: early lease renewals;development of additional space to expand the total lettable area; new lettingsand lease extensions; and the reduction of vacant lettable space. In the Company's admission document in July 2005, DDC stated it would target adividend per share of approximately 10p following full investment of the fundfor the 12 months to 31 December 2007. The Directors are pleased to advise that,barring unforeseen circumstances, it remains the Company's objective torecommend a total dividend pay out in line with these objectives (2006: 6p perordinary share). Preliminary results for the 12 months ended 31 December 2006will be announced in April 2007. Rupert Cottrell, Chairman of Dawnay, Day Carpathian said: "We are well on ourway to developing a substantial, income producing, and geographically diverseportfolio of commercial property in Eastern and Central Europe. We believe thereis significant potential to create additional income streams from our existingportfolio and together with the transactions in the immediate pipeline theCompany is well positioned to achieve its objectives. I look forward toproviding a more detailed update on the Company's progress in April at the timeof the results." Enquiries: Dawnay, Day Panterra Peter Klimt 020 7834 8060 Paul Rogers Balazs Csepregi Cardew Group Tim Robertson 020 7930 0777 Catherine Maitland This information is provided by RNS The company news service from the London Stock Exchange