Acquisition

RNS Number:1470E
European Convergence Property CoPLC
06 June 2006


European Convergence Property Co PLC - Acquisition


The board of ECPC is pleased to announce the conditional acquisition of
Construdava, a new office building located in Bucharest, Romania for a total
consideration of Euro19 million payable in cash. Completion, which is expected in
September 2006, is subject to certain performance targets being met to ECPC's
satisfaction. Construction works are expected to be completed by July 2006. The
investment is expected to generate running yields in excess of 11% on ECPC's net
equity contribution. It is anticipated that approximately 65% of the acquisition
price will be debt financed.


Construdava is developed by Romania's only listed property developer, Impact SA.
It is located in Pipera a predominantly upscale residential part of Bucharest
and consists of approximately 9,200 sq.m. of gross lettable area.


Construdava


ECPC investment outlook


Further progress has been made in identifying and negotiating additional
investment properties in both Bulgaria and Romania. The board believes that the
time frame for full investment implementation expressed in February, when it
announced ECPC's first investment, remains valid and looks forward to making
further investment announcements.



Enquiries:


European Convergence Property Company plc [phone]

Anderson Whamond


Charlemagne Capital [phone]

Christopher Fitzwilliam Lay/Varda Lotan


Panmure Gordon & Co [phone]

Hugh Morgan/Stuart Gledhill


Website: www.europeanconvergence.com



Notes to editors:


ECPC is a property company focused on investing in commercial, retail and
industrial property in South-East Europe with a view to taking advantage of high
yields and the potential for capital appreciation.


The principal target countries are Romania, Bulgaria and Turkey.
Opportunistically, the Company may also seek special situations investments in
these markets and in Central Europe, predominantly in Poland, Hungary and the
Czech Republic.

In June 2005, the Company raised Euro62.7 million before expenses through the
placing of 62.7 million new ordinary shares at a price of Euro1 per share.

The Company's investment manager is Charlemagne Capital (IOM) Limited which is
regulated by the Isle of Man Financial Supervision Commission for investment and
corporate service provider business. The Charlemagne Group specialises in

managing funds in public and private equity in global emerging markets. Its

private equity and property team have historically focused on Central and

South-East Europe. The Charlemagne Group currently manages US$5.8 billion.



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

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