RNS Number : 0540I
European Convergence Property CoPLC
13 November 2008
Property Revaluation and NAV
European Convergence Property Company plc (the 'Company' or 'ECPC')
The Board of ECPC announces the results of an independent revaluation of the Company's remaining investment property, Mall Veliko Turnovo ('MVT') in Bulgaria by SHM Smith Hodgkinson ('SHM'). SHM is a British firm of Chartered Surveyors established in 1860 and specialising in property and corporate asset consulting and valuation services. In 2004, SHM was acquired by the Gordon Brothers Group of USA. SHM has approximately 100 employees worldwide and offices in London, Manchester, Leeds, Bucharest, Belgrade and Kyiv.
The valuation shows a decrease in the market value of MVT of EUR 0.94m, reducing the value from €32.5m at the previous valuation on 31 January 2007 to €31.56m at 30 September 2008. The decrease reflects the impact on the retail investment market in Bulgaria of the current global credit restrictions.
The valuation of the asset is analysed below.
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EURm
|
Equity Investment
|
External Borrowings
|
Total Acquisition Cost*
|
Revaluation
As at
30 Sep 2008
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Increase in
Equity
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%
|
|
Mall Veliko Turnovo
|
10.6
|
19.2
|
29.8
|
31.56
|
1.76
|
16.6%
|
* including transaction costs
The result of this revaluation on the net assets per share of the Company will be a reduction of 0.015 Euro. Taking the published NAV as at 31 December 2007 and adjusting for the capital repayment, the further impact of the valuation would result in a NAV per share of €0.255. It should be noted that this calculation is for illustrative purposes only and may differ from the current actual NAV.
The Company's full year results to 30 June 2008, which will be released later this month, will reflect this valuation and will include an updated and audited NAV per share.
For further information please contact:
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Charlemagne Capital
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+44 (0)207 518 2100
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Varda Lotan / Christopher Fitzwilliam Lay
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Galileo Fund Services Limited
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+44 (0)1624 692600
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Ian Dungate, Company Secretary
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Panmure Gordon (UK) Limited
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44 (0)20 7459 3600
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Hugh Morgan
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Stuart Gledhill
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Smithfield Consultants
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+44 (0)20 7360 4900
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John Kiely
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Gemma Froggatt
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www.europeanconvergence.com
This information is provided by RNS
The company news service from the London Stock Exchange
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