Portfolio Update

RNS Number:9950J
Northern European Properties Ltd
17 December 2007




Portfolio Update and Listing on Euronext Amsterdam

Northern European Properties Limited ("NEPR" or the "Company"), which invests in
real estate opportunities in the Nordic and Baltic regions and Russia, today
provides a pre-close period portfolio update and announces its intention to list
on Euronext Amsterdam.



Portfolio Update



NEPR's existing portfolio continues to perform in line with our expectations.
The next valuation of the portfolio will be as at 31 December 2007 and will be
issued with the Company's preliminary results expected in March 2008.



As previously announced on 27 November 2007, NEPR has agreed the sale of a
portfolio of 14 properties in Sweden to Kungsleden AB.  The transaction
completed on 13 December 2007.  The portfolio consists of industrial, logistics
and office properties whose principal tenants are ABB Fastighet AB and
Frigoscandia. In addition, NEPR has sold a property in Sweden to Dios &
Kuylenstierna AB in a separate transaction. The net sales proceeds from the two
transactions amount to approximately Euro 363 million, which is in line with the
latest reported valuation dated 30 June 2007 (including portfolio premium).



Of the six property acquisitions in Baltic Russia announced in May 2007, NEPR
has completed the two shopping centres in Kaliningrad and Murmansk.  The delays
in closing the other transactions relate to undertakings from the vendors in the
sale and purchase agreements and a slow credit market in Russia.



The proceeds from the recently announced disposals in Sweden will be used to
partially fund, together with existing resources, the completion of the four
outstanding acquisitions in St Petersburg.  In the light of current debt market
conditions, NEPR will initially inject significantly more equity into these
acquisitions than previously anticipated, which it will seek to refinance when
market conditions have improved.  NEPR now expects to complete the acquisitions
by early 2008.



Strategy and Outlook



NEPR's long-term strategy remains to build a stable, cash generative portfolio
of properties in the Nordic Region and Russia.  However, in light of current
market conditions and the recent performance of the Company's share price, the
Board has conducted a detailed review focusing on NEPR's immediate strategic
priorities.

In line with the disposals announced to date, NEPR will seek to optimise the
value of its existing Nordic portfolio.  There has been significant liquidity in
the Nordic market which has provided support for current valuations.  Property
yields remain stable and the financing market is functioning, although
non-Nordic banks have been less active recently.  Where  attractive values can
be achieved, the Board will consider further sales within the Nordic portfolio
which it believes, if currently made, would verify NEPR's reported 30 June 2007
property valuations.  In addition, further disposals will improve NEPR's cash
position and thereby its financial flexibility.



The Board continues to believe that Russia offers an attractive real estate
investment opportunity, where the combination of rental increases and a further
yield shift should provide attractive returns for shareholders.  However, in
light of current market conditions, in particular the availability of credit on
attractive terms, the Board will be cautious in pursuing further acquisitions in
the short term, beyond those already committed in Russia.



To the extent additional sales in the Nordic region are executed and/or NEPR is
able to refinance its existing portfolio, in particular its Russian assets, the
Board will actively consider a share buy-back in light of the current discount
of the Company's share price to its reported net asset value, as well as other
potential uses for the capital.



Overall, the fundamentals for our business remain the long-term nature of our
existing leases, long-term financing in-place, and the strength and growth of
the underlying economies in which we operate.  Whilst NEPR has been impacted by
the current credit crisis as well as broader negative sentiment towards the real
estate sector, the Board remains optimistic that it can deliver value from its
portfolio of stable, income producing properties in order to generate long term
value for shareholders.



Listing on Euronext Amsterdam



NEPR today announces that it intends to list its ordinary shares on Euronext
Amsterdam commencing 18 December 2007.  This follows the Company's previous
announcement on 20 September 2007 that the Directors intended to seek a listing
on Euronext Amsterdam.  The Directors consider that a listing on Euronext
Amsterdam better reflects the Company's investment focus in mainland Europe and
Russia, its size and the denomination of both its reporting currency and share
price in Euros.  The Directors also believe that the new listing will assist in
broadening the shareholder base of the Company and enhancing the liquidity of
the Company's shares.



The ordinary shares of the Company currently trade on AIM and NEPR will maintain
its AIM admission for a period following its listing on Euronext Amsterdam.
During this period the Company's shares, already quoted in Euros, will be
fungible between the two markets.  The Directors intend to review the Company's
AIM admission in early 2008.



A prospectus, approved by the AFM, has been published today which contains
information on the Company and, amongst other things, information about Euronext
Amsterdam (including regarding trading, clearing and settlement on that market).
  A shareholder wishing to trade its shares on Euronext Amsterdam rather than
the London Stock Exchange must have or must open an account directly or by way
of an intermediary with an admitted institution of Euroclear Nederland and then
elect to transfer its shares to the CREST account of Euroclear Nederland. The
shares will be listed under the symbol 'NEPR', with the ISIN Code JE00B1G3KL02
and Security Code 614764.  The address of Euroclear Nederland is: Damrak 70,
1012 LM Amsterdam.



A copy of the prospectus is available from the offices of Ashurst LLP, Broadwalk
House, 5 Appold Street, London EC2A 2HA, at the registered office of the Company
and at the office of ING Bank N.V., Van Heenvlietlaan 220, 1083 CN Amsterdam,
The Netherlands during usual business hours on any weekday (Saturdays, Sundays,
and public holidays excepted).



Enquiries:



Jens Engwall, Chairman         Tel: [phone]



Thomas Lindeborg, CEO          Tel: [phone]



Per Lindblad, CFO              Tel: [phone]



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