Fusion Antibody Regulatory News (FAB)

14 Jun 2007 07:01

Fabian Romania Property Fund Ltd14 June 2007 Fabian Romania Property Fund Limited ("Fabian Romania" or the "Fund") Fabian Romania announces the acquisition of an €8.0 million office developmentscheme in Bucharest Fabian Romania has signed a turn-key agreement with Hil Construct to purchaseits sixth office project in central Bucharest for a prospective purchase yieldof 8.9 per cent.. Completion is conditional on the attainment of the finalbuilding permit which is currently expected at the end of August 2007. The Romana office building will be built for the Fund on a centrally locatedsite on Dacia Boulevard. The building will be built to Class A specificationswith a gross area of approximately 3,000 square metres ("sqm"). The projectmanagement will be undertaken by Globus, an experienced local developer inRomania. Construction is due to commence in the fourth quarter 2007 withcompletion anticipated in the third quarter of 2009. Total construction costsare estimated to be in the order of €8.0 million. Upon completion, the building will provide a net lettable office area of around2,480 sqm over 7 floors, together with 40 car parking spaces. The building is ina prominent position with views over Plaza Romana and is likely to attractinternational tenants seeking Class A office space. Vacancy rates for Class Aoffice space in in Bucharest are less than 3 per cent.. The Fund, advised by itsinvestment manager Fabian Capital Limited ("Fabian Capital"), will assume theletting responsibility for the building. The estimated rental value of thebuilding upon completion is €715,000 per annum giving a prospective purchaseyield of 8.9 per cent.. Upon completion the Fund will pay the purchase price of €7.6 million to Hil in 3instalments; a first instalment of €2.0 million will be made for the company toacquire ownership of the land; a second instalment for construction costs ofapproximately €3.0 million; and a final payment upon practical completion of€2.6 million in the form of a bank guarantee. Including non developer relatedcosts, the total purchase price is forecast to be €8.0 million. The Fund'sequity requirement is expected to be €2 million with debt finance to fund thebalance. Dacia Boulevard is in the heart of Bucharest running between Calle Victoria andRomana Square. It is some 5 minutes by car from the Intercontinental Hotel. Thisarea is a popular office location. A number of international companies havetheir headquarters nearby. Commenting on the transaction, Mark Owen, Property Director of Fabian Capital,said: "We are pleased the Fund has signed another high quality office purchase shortlyafter the announcement of its intention to purchase the Evocenter. This newdevelopment is located in one of the most central positions you could hope toachieve in Bucharest and we are confident the Fund will achieve pre lets priorto completion. The building is flexible to provide sub 1,000 sqm floor plates ofwhich there is an under supply in the market whilst still otherwise providingClass A technical specifications. This investment will make it the third in thecentral core area of Bucharest for the Funds' expanding Portfolio." The lead advisers on the transaction were DTZ (property agent), WSP (technicaladvisers) and Tuca (legal adviser). For Comments:Fabian Romania:Mark Holdsworth +44 20 7499 9988 Nominated Adviser:Deloitte & Touche LLPJames Lewis +44 20 7936 3000 Broker:Shore Capital Stockbrokers LimitedDru Danford +44 20 7408 4090 This information is provided by RNS The company news service from the London Stock Exchange