Acquisition

RNS Number:7975G
European Convergence Property CoPLC
27 July 2006


European Convergence Property Co plc ("ECPC" or "the Company")


Acquisition

The board of ECPC is pleased to announce the acquisition of the Millenium
Business Centre, a new Class A office building located in Central Bucharest.
Final consideration will be dependant upon full leasing, however it is currently
estimated that the purchase price will be approximately Euro40 million. A 20% down
payment has been paid on signing with the remainder due to be paid upon
construction completion which is expected by October 2006. The investment is
expected to generate running yields in excess of 9.5% on ECPC's net equity
contribution. It is anticipated that approximately 70% of the acquisition price
will be debt financed. Principal tenants of the property include the World Bank
and Transelectrica SA.


The building consists of 14,310 sq.m. of gross lettable area over 19 floor
levels, making it a new landmark property for central Bucharest. In addition, a
further four basements will provide commercial and car parking areas.


ECPC investment outlook


The management is pleased with this latest acquisition which brings the total
amount of funds invested to approximately Euro112 million. Management believe that
with the approximate Euro60 million of equity as at 31 December, 2005, that ECPC's
investment program will be completed when gross assets reach Euro175 million. This
would represent a debt/equity ratio of approximately 65%/35% as opposed to the
current level of approximately 50%/50%.




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$ 4 billion.






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

END
ACQEAXXKALPKEFE