Acquisition

Dawnay, Day Carpathian PLC
03 October 2006


                           DAWNAY, DAY CARPATHIAN PLC
                                                                                                               
                                        
         17 million acquisition of Ericsson Property, Budapest, Hungary
                                        
                                        
Dawnay, Day Carpathian PLC ("Dawnay, Day Carpathian" or the "Company") is
pleased to announce that it has acquired a property in Budapest, for
approximately €17m, financed by €5m of equity and €12m of debt. This acquisition
is the ninth investment announced by the Company since IPO and represents a net
initial yield of 9.75%. The premises are let to Ericsson Hungary until March
2011 and comprise 8 buildings totalling 8,000 sq.m on a site of 31,250 sq.m.


The property is located in the 3rd district of Budapest adjacent to one of the
main arterial roads running from the city centre to the M0 ring road, which is
currently under construction. The site's prominent position on a major road,
combined with its proximity to an established retail location, provides the
Company with an excellent redevelopment opportunity in addition to the
attractive initial yield.


The site has zoning for a total development area of up to 62,600 sq.m, as
compared with the current built area of 8,000 sq.m of office buildings.
Permitted uses are retail (up to a maximum of 14,000 sq.m), office and
education. There is also the possibility of having the site re-zoned to allow
residential development. It is the Company's intention to work up redevelopment
proposals for a retail led mixed use development, whilst benefiting from the
strong existing income stream, over the next 18 months. As a condition of the
acquisition, Dawnay, Day Carpathian required the vendor to obtain a permit for
the demolition of the existing buildings.


Commenting on the acquisition, Rupert Cottrell commented: "This is an
interesting acquisition as it offers a strong existing income stream from a blue
chip tenant, together with the potential to create a substantially enlarged
retail led mixed use property. As we have stated before, we would pursue this
opportunity in ways that minimise our exposure to the associated development
risks."


Enquiries:

Dawnay, Day Carpathian PLC  Peter Klimt             020 7834 8060
                            Paul Rogers

Cardew Group                Tim Robertson           020 7930 0777
                            Catherine Maitland


Notes to Editors:


DDC listed on the AIM market in July 2005 and raised new funds to create a
geared €1 billion portfolio of retail properties. To date, the Company has
purchased four shopping centres with a property valuation of €64.5 million in
Poland, the Antana Warehouse Park in Hungary valued at €21.0 million, the
Varyada Shopping Centre in the Czech Republic valued at €37.0 million, the
Promenada Shopping and Business Centre in Poland for an initial €127.0 million,
the Plaza Portfolio of four shopping centres in Hungary for an initial €61.0
million, Macro Mall shopping centre in Brasov, Romania for approximately €19.0m
and Babilonas shopping centre in Panevezys, Lithuania for €32.5m.




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