Property Revaluation and NAV

    RNS Number : 0540I
  European Convergence Property CoPLC
  13 November 2008
   

    Property Revaluation and NAV

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

    The Board of ECPC announces the results of an independent revaluation of the Company's remaining investment property, Mall Veliko
Turnovo ("MVT") in Bulgaria by SHM Smith Hodgkinson ("SHM"). SHM is a British firm of Chartered Surveyors established in 1860 and
specialising in property and corporate asset consulting and valuation services. In 2004, SHM was acquired by the Gordon Brothers Group of
USA. SHM has approximately 100 employees worldwide and offices in London, Manchester, Leeds, Bucharest, Belgrade and Kyiv.


    The valuation shows a decrease in the market value of MVT of EUR 0.94m, reducing the value from EUR32.5m at the previous valuation on 31
January 2007 to EUR31.56m at 30 September 2008. The decrease reflects the impact on the retail investment market in Bulgaria of the current
global credit restrictions.    

    The valuation of the asset is analysed below.

 EURm                 Equity Investment  External Borrowings   Total Acquisition       Revaluation     Increase in     %
                                                                     Cost*               As at            Equity
                                                                                       30 Sep 2008
 Mall Veliko Turnovo        10.6                19.2                  29.8                31.56            1.76      16.6%
    * including transaction costs

The result of this revaluation on the net assets per share of the Company will be a reduction of 0.015 Euro. Taking the published NAV as at
31 December 2007 and adjusting for the capital repayment, the further impact of the valuation would result in a NAV per share of EUR0.255.
It should be noted that this calculation is for illustrative purposes only and may differ from the current actual NAV. 


    The Company's full year results to 30 June 2008, which will be released later this month, will reflect this valuation and will include
an updated and audited NAV per share.

    For further information please contact:
 Charlemagne Capital                        [phone]
 Varda Lotan / Christopher Fitzwilliam Lay

 Galileo Fund Services Limited              [phone]
 Ian Dungate, Company Secretary

 Panmure Gordon (UK) Limited                44 (0)20 7459 3600
 Hugh Morgan
 Stuart Gledhill

 Smithfield Consultants                     [phone]
 John Kiely
 Gemma Froggatt


    www.europeanconvergence.com

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