Dci Advisors Regulatory News (DCI)

25 Sep 2007 07:03

Dolphin Capital Investors Limited25 September 2007 25 September 2007 Dolphin Capital Investors Limited ("DCI" or the "Company") €26 million commitment to Plaka Bay Resort in Crete Dolphin Capital Investors, currently the leading investor in the ResidentialResort sector in Southeast Europe and the largest real estate investment companylisted on AIM, is pleased to announce the signing of a new investment in PlakaBay Resort, situated on the island of Crete, Greece. Highlights: • Plaka Bay Resort ("Plaka Bay" or the "Project") represents DCI's ninth major project in Greece and is expected to be developed as a beachfront resort integrating a few hundred residential units, a luxury hotel, other leisure facilities and potentially an 18-hole golf course. • The 430-hectare property is one of the largest private contiguous land sites on the island of Crete (the largest of the Greek islands), has a 7km sea frontage and is situated on a peninsula that is a 30-minute drive east from Sitia Airport. • DCI has acquired a 60% shareholding in the Project from the Ioannou family (the "Sellers"), the original owners. The 40% shareholding remains with the Ioannou family who are major shareholders in J&P Group, one of the region's largest construction companies. • A €7 million payment has been made upfront and a further €9 million payment will be made upon the Sellers obtaining the Environmental Impact Study and the approval of the residential master plan. An additional €10 million has been committed to fund DCI's share of the Project's permitting and early development phases, bringing DCI's total commitment to €26 million. DCI is managed by Dolphin Capital Partners ("DCP"). Miltos Kambourides, Managing Partner of DCP, commented: "Plaka Bay is our secondproject in the upcoming region of Sitia and one of the largest freehold seafrontsites on the island of Crete which has already entered the design and permittingapproval process by our 40% strategic partners." Further Details: Plaka Bay Resort represents DCI's second investment in Crete, the most popularGreek tourist destination with over 2.8 million visitors last year and one ofthe main beneficiaries of the influx of foreign investments in the real estatesector that is anticipated over the coming years. The Project, spread over a 4,300,000 m2 site, is being designed as a seafront,master-planned leisure-integrated resort aiming for a residential development ofover 100,000 m2, a five-star hotel, other supporting recreational facilities andpotentially an 18-hole golf course. The site is situated on a secluded peninsula of unspoilt natural beauty, east ofSitia, on the island of Crete. Crete is the largest of the Greek islands withthree international airports in Chania, Heraklion and Sitia. Plaka Bay is only a30 minute-drive east from Sitia International Airport, a 2.5-hour drive eastfrom Heraklion International Airport and very close to Sitia Harbour. The Project is at an early stage of the design permit approval process, havingreceived forestry and archeological clearances. The permitting process isexpected to be concluded within approximately two years. DCI is acquiring a 60% stake in the SPV which owns 100% of the Project company.The remaining shares of the SPV remain in the ownership of the Sellers. TheCompany has agreed to acquire its stake in the Project by paying in stagessubject to permit milestones. A €7 million payment and investment (approx. €2.6per m2) has been made upfront and a further €9 million payment (approx. €3.4 perm2) will be made upon the Sellers obtaining the Environmental Impact Study andthe approval of the residential master plan. An additional €10 million has beenallocated to progress the Project's permitting and early development phases,bringing DCI's total commitment to €26 million. The other 40% of the Project company remains with the Ioannou family who aremajor shareholders in J&P Group, one of the region's largest constructioncompanies. J&P Development, a subsidiary of the J&P Group with experience inholiday home development in Greece and Cyprus, will at this stage continue to beinvolved in the development management of the Project. For further information, please contact: Dolphin Capital Partners LimitedMiltos Kambourides / Pierre Charalambidesmiltos@dolphincp.com / pierre@dolphincp.com Grant Thornton Corporate Finance Tel: +44 (0) 20 7383 5100(Nominated Adviser)Philip Secrett Panmure Gordon Tel: +44 (0) 20 7459 3600(Broker)Richard Gray / Dominic Morley / Andrew Potts Financial Dynamics Tel: +44 (0) 20 7831 3113(Public Relations)Stephanie HighettLauren MillsNicole Marino Dolphin Capital Investors DCI, currently the largest real estate investment company listed on AIM, seeksto provide shareholders with strong capital growth combined with a low riskprofile through investing in early-stage, large scale leisure-integratedresidential resorts mainly in Southeast Europe in partnership with world leadingdesigners and operators. The Company's shares commenced trading on AIM inDecember 2005 raising £70.7 million (€104 million) at an issue price of 68p,followed by a £202.7 million (€300 million) secondary offering at a price of 93pper share in October 2006. In June 2007, the Company raised a further £303million (€450 million) in a follow-on issuance priced at 170p per common share. With Plaka Bay Resort, DCI has in total invested €405 million and committed €564million to various projects in Greece, Cyprus and Croatia. DCI is also in theprocess of becoming the 85% owner of Aristo Developers Plc, one of the region'slargest and most experienced holiday home developers. Dolphin Capital Partners DCP is an independent investment management business founded in 2004 by MiltosKambourides and Pierre Charalambides after leaving Soros Real Estate Partners. The DCP professionals combine extensive local knowledge and contacts withexpertise gained at some of the world's leading financial institutions. Theyspecialise in providing capital to rigorously selected real estate developmentsmainly in the eastern Mediterranean, typically though joint ventures with localdevelopers. DCP cooperates with an international and sophisticated network ofoperators, designers, master-planners and marketing agents for each of itsdevelopments. This information is provided by RNS The company news service from the London Stock Exchange