Signing of sales contract of Babilonas Centre

RNS Number : 1398T

Carpathian PLC

01 December 2011

 



Date:	1 December 2011
On behalf of:	Carpathian PLC ("Carpathian", the "Company" or the "Group")
Immediate release

Carpathian PLC

Signing of the sales contract of the Babilonas Shopping Centre, Panevezys, Lithuania

Carpathian Plc (AIM: CPT), the commercial property investment company focused on retail properties within Central and Eastern Europe, today announces the signing of a contract for the sale of the Babilonas Shopping Centre in Panevezys, Lithuania.  The Purchaser is Pontos Group, a family owned private equity and real estate investor based in Finland.

The Babilonas shopping centre comprises approximately 22,429 square metres of retail space, anchored by Norfa, Jysk and New Yorker.

The gross sales price is approximately €24.1 million for the local holding company of Mulga UAB. Post closing price adjustments are anticipated to be minimal, resulting in a projected net equity realisation of approximately €5 million after sales costs and repayment of senior debt.  Final closing is anticipated to take place on 7 December 2011. The latest independent valuation of the property was €25 million as at 31 December 2010.

The senior debt repayment to pbb Deutsche Pfandbriefbank AG of approximately €18.4 million follows the earlier debt reduction of €3.8 million arising from a partial cross collateralisation against the proceeds of the Promenada Shopping Centre and Blue Knight portfolio in Poland that were sold earlier this year. Legal advisers to the company were Sorainen and no sales agent was involved.

The Company continues to review its working capital requirements with a view to making further distributions to shareholders in accordance with the previously declared intentions of the Board.                                                                

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Enquiries:

Carpathian PLC
Rory Macnamara, Non-executive Chairman	Via Redleaf Polhill
CPT LLP	020 7529 6413
Paul Rogers/Balazs Csepregi	[e-mail]
Collins Stewart Europe Limited	020 7523 8350
Bruce Garrow
Redleaf Polhill	020 7566 6720
Henry Columbine / Luis Mackness	[e-mail]

Notes to Editors:

-	Carpathian was created in 2005 for the purpose of investing in Central and Eastern European commercial real estate.
-	Carpathian was admitted to trading on AIM in July 2005.
-	CPT LLP is the Property Investment Adviser to Carpathian. CPT LLP owns 100% of Carpathian Asset Management Limited (CAM). CAM, which was previously owned 50% by the Company, became fully externalised when the Company and CPT LLP implemented the new portfolio management agreement on 1 March 2010. CAM, together with its parent undertaking, CPT LLP, is responsible for managing the remaining core portfolio of assets and transactions within Central and Eastern Europe.

 

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