Statement re tenant

    RNS Number : 9330B
  Dawnay, Day Carpathian PLC
  22 August 2008
   

    Date: 22 August 2008
    On behalf of: Dawnay, Day Carpathian PLC
    For immediate release

    Dawnay, Day Carpathian PLC
    ("Carpathian" or the "Company")

    Carpathian, (AIM: DDC) the retail property investment company established to invest in Central and Eastern Europe, notes the financial
position of Interfruct Kft. ("Interfruct") as set out below, one of Hungary's largest cash and carry retailers, and the tenant of 23 of
Carpathian's properties in Hungary. 

    Rent arrears of two months' rent in respect of Interfruct have arisen, as a consequence of which, with the consent of Carpathian's
secured debt provider, Anglo Irish Asset Finance PLC ("Anglo"), all of the leases have been terminated with effect from today and the
tenant's bank guarantee of EUR 6.4 million for 11 months' rent (including the existing rent arrears), which is expected to become fully
payable within 30 days.

    The 23 properties leased to Interfruct have an annualised rent roll of EUR 6.7 million, representing approximately 14 % of the Company's
total annualised rent roll. In 2007, these properties contributed approximately EUR 1.7 million or approximately 8 % of the total Company
profit after tax. 

    The Company had invested 8% of its equity in the portfolio, which represents approximately 12 % of the gross asset value of the entire
portfolio as at 31 December 2007. Steps have been taken to draw upon the tenant's bank guarantee, which provides coverage for the equivalent
of 11 months' rent (including the existing rent arrears). 

     A number of options are being actively explored to mitigate the potential loss of income (once the tenant's bank guarantee has been
exhausted) and to preserve capital value. In the meantime, an agreement has been reached with Anglo to appoint an international sales and
letting agent to work with the portfolio managers to identify and implement the optimal strategies for the re-letting and / or sale of the
portfolio, whether as a whole or individually or in sub-portfolios. Discussions between Carpathian and Anglo regarding the restructuring of
the existing loan facility are continuing to take place.

     -Ends-

    Enquiries: 

    Dawnay, Day Carpathian PLC: Via Redleaf Communications
    Rupert Cottrell 

    Carpathian Asset Management: 0203 178 2892
    Paul Rogers 
    Balazs Csepregi

    Numis Securities Limited: 020 7260 1000 
    Nominated Adviser
    Anthony Richardson
    Nick Westlake 

    Corporate Broking
    Charlie Farquhar 

    Redleaf Communications: 020 7822 0200 
    [e-mail] 
    Emma Kane 
    Adam Leviton 
    Henry Columbine



This information is provided by RNS
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