Dawnay, Day Carpathian PLC
15 August 2007
Dawnay, Day Carpathian PLC
("DDC" or the "Company")
Announces the Acquisition of a multi-purpose development site in Cluj-Napoca,
Romania
Dawnay, Day Carpathian PLC, the retail property investment company established
to invest in Central and Eastern Europe, is pleased to announce that it has
acquired a multi purpose development site for €14.3 million in Cluj-Napoca,
Romania (the "Cluj Transaction"). This acquisition is the first of the pipeline
deals identified by the Company's asset manager, Dawnay, Day PanTerra Limited
(the "Property Advisor") at the time of the second fund raising completed in May
2007.
Cluj-Napoca Development
The Cluj-Napoca development is located in the city centre and covers a total
site area of 19,400 sqm. The planned development of over 40,000 sqm will be a
retail and entertainment complex with an office element of over 8,000 sqm
included, with the potential to incorporate a hotel. Cluj-Napoca is one of the
largest cities in Romania, situated approximately 440 km north-west of
Bucharest, in the Somesul Mic Valley, in the historic province of Transylvania.
With nearly 300,000 inhabitants Cluj-Napoca is best known for its important
academic, cultural and industrial centres.
The site is located in the centre of the town on one of the main arterial roads
through the city which connects the Eastern districts to the city centre;
attracting a high volume of traffic during the day. The site is acquired with a
consented building permit, and construction is expected to commence in March
2008. The estimated cost of construction is €60 million and the project is
expected to be completed within approximately 18 months. Based on an income
yield of 7%, this puts the estimated project value upon completion at
€111million.
The acquisition is a share purchase transaction from a Dutch holding company in
which members of the Dawnay, Day Group have a controlling interest and
represents the Company's second investment in Romania and the fourteenth
transaction overall. The company has been purchased with financing, on a 65%
loan to value basis, arranged by the Property Advisor and this debt shall be
refinanced with a construction loan when the project commences next year. The
leasing of the space, arranged through S.C. Cushman & Wakefield Consulting Activ
S.R.L., is well under way.
Under the original terms set out at the time of the Company's IPO, following the
acquisition, members of the Dawnay, Day Group have agreed to subscribe for an
estimated €1.5 million of new ordinary shares in DDC, representing profits from
the Cluj Transaction.
Commenting on the acquisition, Rupert Cottrell, Chairman of Dawnay, Day
Carpathian PLC said "This represents an excellent transaction for DDC and an
opportunity for us to establish ourselves further in the Romanian market through
the first of a number of development projects. We feel that the country as a
whole benefits from strong growth potential but with a lack of good retail
stock. The combination of these factors fully supports development opportunities
such as this."
Enquiries:
Dawnay, Day PanTerra Peter Klimt 020 7834 8060
Paul Rogers
Balazs Csepregi
Cardew Group Tim Robertson 020 7930 0777
Catherine Maitland
Numis Securities Bruce Garrow 020 7260 1000
Anthony Richardson
This information is provided by RNS
The company news service from the London Stock Exchange