Acquisition

RNS Number:7064M
North Real Estate Opportunities Fd
27 November 2006




27 November, 2006

 

North Real Estate Opportunities Fund announces acquisition of European Retail
                              Park Sibiu, Romania


North Real Estate Opportunities Fund Ltd ("NRE" or "Company") announces the
acquisition of the 50,000 square metre European Retail Park Sibiu for
approximately Euro 83 million. This is believed to be one of the largest real
estate transactions in Romania to date.

The acquisition will be financed through existing cash balances and bank debt.

The European Retail Park is located in Sibiu, Romania, the European Capital of
Culture for 2007. The shopping centre, which opened on November 17 2006, is
anchored by leading international retailers including Real Hypermarket (owned by
Metro AG), Baumax DIY, Media Galaxy, the electronics superstore, along with a
wide range of specialty retail tenants such as Benetton, Lee Cooper, Adidas,
Levi's and Kenvelo for the park's 10,000 square metre shopping mall, Promenada.

European Retail Park Sibiu is NRE's first acquisition for its portfolio of
dominant destination retail parks and reflects the Company's stated objective to
seek to maximise risk adjusted returns derived principally from rental income
and capital appreciation generated from the acquisition, development and active
asset management of its property investments. The project is expected to
generate a rental yield for the Company in excess of 8.0% upon final completion
of the scheme.

Commenting on the acquisition Magnus Lofgren, Managing Director, said: "In
acquiring the European Retail Park Sibiu, NRE has made a significant investment
into the exciting prospects and growing prosperity of this dynamic and rapidly
developing Romanian city. The quality and diversity of the tenants, including
several of Europe's leading international retailers, positions the retail park
for long term success and in catering to the retail needs of the local and
regional population".

The transaction follows the Company's strategy of capitalising on the growth of
disposable income and consumer spending power in Eastern Europe through the
creation of a portfolio of institutional grade retail shopping centres across
the region. Further progress in completing pipeline investments is anticipated
over the coming months.

Robert Provine, Managing Director added: "The European Retail Park Sibiu will
provide a cornerstone asset to our portfolio and it fulfils the Company's stated
objective of providing investors with a high level of risk adjusted returns
derived principally from rental income and the potential for capital
appreciation. NRE's long term investment horizon leads us to become an integral
commercial partner with the cities in which we operate. We work closely with the
local municipalities in ensuring our projects evolve with the needs of the local
and regional community."

                                     -Ends-



North Real Estate Opportunities Fund Ltd

[phone]
Robert Provine
Alex Haidas

Merlin

[phone]
Michael Rummel, mobile [phone]



Notes to Editors

North Real Estate Opportunities Fund Ltd is a Guernsey based closed-ended
investment company, investing in the commercial property markets of Central and
Eastern Europe. The company is listed on the London Stock Exchange's AIM market
and is managed by North Asset Management, with offices in London and Bucharest.
The Fund's ticker is NRE.

North Asset Management is an independent alternative asset manager with a strong
focus on the European time zone and in particular the opportunities available in
peripheral Europe. Founded in July 2002, North brings together a highly
respected team of professionals with an average prior experience of over ten
years in the investment banking and management community. The company currently
manages over $1 billion on behalf of its clients in hedge funds, real estate
funds, discretionary mandates and CDOs.

North Asset Management was advised by Nestor & Nestor, Kingston Peterson.






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