Last checked at 27 Oct 2008 07:00
27 October 2008
Fabian Romania Limited (FAB.LN)
Net asset value as at 30 September 2008
Fabian Romania Limited ("Fabian"), the AIM listed dedicated investor in the Bucharest and wider Romanian real estate market announces its Net Asset Value ("NAV") as at 30 September 2008.
Fabian seeks to generate attractive total returns for its shareholders through a portfolio of income producing buildings, co-development residential, office, logistics and retail projects, with experienced partners and land investments. Fabian receives investment advice from Fabian Capital Limited, an independent investment management firm that specialises in Romanian real estate investment advice (Fabian Capital Limited does not carry out any regulated activities in the UK).
Highlights
Net Assets of €1.665 per share
Fabian's NAV as at 30 September 2008 is €1.665 per share, a decrease of 0.1 per cent. from the second quarter's NAV of €1.667 per share.
The published NAV has been calculated consistently in accordance with Fabian's Articles of Association. The income producing buildings are valued based on values as determined by DTZ using estimated market yields. However, in the current market conditions and with a lack of evidence of transactions to provide a comparison, there can be no certainty that the yields used for the valuations will accurately reflect the open market value of the buildings. The development projects are included using the value of the land prior to the start of construction, to which the cost of the construction work in progress less any advance payments received is added. Any change in the valuation of the project as determined by DTZ is reflected in the estimated future profitability of the project to be realised on completion.
An analysis of Fabian's NAV by project is summarised below:
| 30 September 2008 | Fabians' share of Market Value | Net debt | Net Worth | Net Equity Invested ** |
| €m | €m | €m | €m | |
| Cascades | 18.3 | (9.5) | 8.8 | 2.6 |
| Banu | 17.5 | (8.7) | 8.8 | 2.9 |
| Baneasa Business Centre | 28.2 | (19.2) | 9.0 | 3.9 |
| Evo | 5.2 | (3.7) | 1.6 | 1.3 |
| Sub-total | 69.2 | (41.0) | 28.2 | 10.7 |
| Lakeview *^ | 16.4 | (7.2) | 9.2 | 5.3 |
| Romana | 3.2 | 0.0 | 3.2 | 2.9 |
| Cubic Centre | 12.5 | 0.0 | 12.5 | 12.5 |
| New Town * ^ | 26.6 | (11.8) | 14.9 | 5.8 |
| Timisoara * ^ | 5.7 | (2.6) | 3.1 | 1.7 |
| Oradea + | 2.2 | (0.1) | 2.1 | 2.0 |
| Satu Mare + | 0.8 | (0.1) | 0.7 | 1.2 |
| Net cash | 8.0 | |||
| Other assets / (liabilities) ** | 2.8 | |||
| Total | 136.6 | (62.8) | 84.6 | 42.0 |
| Shares (#) | 50,831,130 | |||
| NAVPS (€) | 1.665 | |||
| Movement in Q3 2008 | -0.1% | |||
| * represents Fabian Romania Limited's share of the development | ||||
| ** Net equity invested comprises the original acquisition equity less amounts repaid through refinancing | ||||
| ^ includes development WIP less advance payments from customers | ||||
| + Net debt represents deferred acquisition costs | ||||
Future Development Profit of €0.553 per share
In order to provide transparency to Fabian's shareholders as to the potential level of such future development profits that may accrue, an estimate of these future development profits is given below. The calculations are based on the DTZ site valuations referred to above, at 30 September 2008 which include estimates of these development profits. These estimates by their very nature are forecasts, relying on future events and accordingly are subject to uncertainty. Shareholders may then choose to discount these profits to estimate their net present value in today's terms based on current market conditions.
The forecast development profit figures are stated gross and do not include all costs that may be incurred by Fabian over the course of the projects (in particular transaction fees and any carried interest payable to the investment manager). The implied share of future development profit figures for the New Town, Timisoara, Oradea and Satu Mare residential schemes and the Cubic Centre, Lakeview, and Romana office schemes, based on Fabian's calculations using DTZ's estimates, is given in the table below:
| Project |
|
| Implied Fabian Share of future Development Profit (€m) | Final Year of development * |
| Lakeview | 3.2 | 2009 | ||
| Cubic Centre | 4.0 | 2009 | ||
| New Town | 8.5 | 2010 | ||
| Romana | 1.4 | 2010 | ||
| Timisoara | 6.0 | 2011 | ||
| Satu Mare | 1.5 | 2011 | ||
| Oradea |
|
| 3.5 | 2012 |
| NAV contribution (€m) | 28.1 | |||
| NAVPS constribution (€) | 0.553 | |||
| * Fabian estimates (based on DTZ valuations) | ||||
Adding these forecast development profits of €28.1 million or €0.553 per share to the NAV produces what the Directors have called the DPNAV of €2.218 per share. This represents a decrease of 4.4 per cent. from 30 June 2008 DPNAV of €2.319.
Mark Holdsworth and Jan-Olof Hansson
Fabian Capital Limited
27 October 2008
The directors of Fabian Romania Limited accept responsibility for the information contained in this announcement. To the best of the knowledge and belief of the directors of the Company (who have taken all reasonable care to ensure that such is the case) the information contained in this announcement is in accordance with the facts and does not omit anything likely to affect the import of such information.
Contacts:
| Fabian Capital Limited | |
| Mark Holdsworth | Tel: +44 20 7499 9988 |
| Monument PR - Financial Public Relations to Fabian | |
| Toby Moore | Tel: +44 845 355 1178 |
| Deloitte Corporate Finance - Nominated Adviser to Fabian | |
| James Lewis | Tel: +44 20 7936 3000 |
| KBC Peel Hunt - Joint Broker to Fabian | |
| Capel Irwin | Tel: +44 20 7418 8900 |
| Shore Capital Stockbrokers Limited - Joint Broker to Fabian | |
| Dru Danford | Tel: +44 20 7408 4090 |