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Rutley European Prop (DPE)

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Wednesday 13 December, 2006

Rutley European Prop

Issue of Equity

Rutley European Property Limited
13 December 2006

Rutley European Property Limited

Not for publication, release or distribution in whole or in part in Australia,
Canada, Japan or the United States

Placing and Public offer of C Shares / portfolio update

The Board of Rutley European Property Limited is pleased to announce that a
total of 87.3 million C Shares have been issued pursuant to the recent placing
and offer for subscription at 100 p each. These Shares will be admitted to the
official lists of the London Stock Exchange and the Channel Islands Stock
Exchange and unconditional dealings will commence at 8.00 am on 14
December 2006. The initial net asset value of the C Shares is estimated at

As disclosed in the prospectus dated 22 November 2006, Rutley Capital Partners
LLP, the private equity real estate business of Knight Frank LLP and Manager of
the Company, is currently negotiating and conducting due diligence on
several property acquisitions for the C Share portfolio, including a portfolio
of offices in the Czech Republic and Poland for circa €198m reflecting an
anticipated gross initial yield of 6% and an off-market office property in
Berlin for circa €54m reflecting an anticipated gross initial yield of 6.8%.

The net proceeds of the C Shares will be accounted for as a separate asset until
they have they have been at least 75 per cent invested in real estate
investments at which stage they will be converted into Shares in the Company.

For the existing portfolio, the Company has completed the off-market acquisition
of five assets located in Nuremberg and Bayreuth, Germany for circa €43.5
million reflecting a gross initial yield of 6.33%. The properties are 95% let to
a diverse spread of tenants, with a weighted average unexpired lease term of
3.62 years affording the opportunity to create additional value over the hold
period through active management. The acquisition has been partly financed with
external debt at 75% LTV, fixed for 5 years. The Manager is currently
undertaking due diligence on two office properties in Belgium for circa €27m
reflecting an anticipated gross initial yield of 7% and a circa €24m
logistics warehouse in the Czech Republic, both of which have been sourced

Commenting on the C share issue, Nick Burnell, Partner of Rutley Capital
Partners LLP said, 'We are delighted to have more than doubled the capital base
of the Company and substantially broadened the investor base. The new capital
will give the Company capacity to acquire approximately €350 million of
additional property investments. The latest acquisition in Germany announced
today demonstrates that the Company is continuing to capture yield advantage by
concluding transactions on an off-market basis. We are confident that the market
penetration we have achieved through our access to the extensive network of more
than 20 Knight Frank European offices will continue to confer a competitive
advantage on the Company in meeting its investment targets.'


Rutley Capital Partners
Nick Burnell  /  Robert Hannington  020 7861 1174

Cenkos Securities plc
William Rogers  /  Charlie Ricketts 0207 397 8900

                      This information is provided by RNS
            The company news service from the London Stock Exchange

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