Investment

RNS Number:4006P
Reconstruction Capital II Ltd
05 March 2008

                       Reconstruction Capital II Limited



                                                                    5 March 2008

                     RC2 Invests in Romanian Seaside Hotel


Reconstruction Capital II Limited ("RC2") is pleased to announce its first
investment since the completion of its latest fundraising exercise in December
2007.

RC2 has acquired a 63% shareholding in Antares Hotels SRL ("the Company") for a
total consideration of EUR 8m, by means of a purchase of existing shares and by
the subscription for new shares in the Company. The Company is the owner and
operator of the 305-room Fantasy Beach Hotel (the "Hotel") located in Mamaia,
Romania's premium holiday resort on the Black Sea coast and in close vicinity to
Constanta. Home to Europe's fourth largest maritime port, Constanta is Romania's
third largest city and has emerged as one of Romania's most vibrant economic
regions. As part of the transaction, the funds invested in the Company will
primarily be used for the repayment of loans that were taken out for recent
upgrades of the Hotel rooms and its general facilities, and to provide working
capital to the Company.

The Hotel occupies approximately half a hectare of owned land adjacent to Mamaia
beach. The Hotel's constructed area amounts to approximately 15,000 sqm. In
addition, the Company owns a 2,257 sqm plot of land adjacent to it, also facing
the beach, which is unused at present and which RC2 intends to be developed into
holiday apartments.


RC2 has appointed Peacock Hotels /  Global Hotel Management, a professional
local hotel management company with a strong track record, to run the Hotel and
intends to franchise the Hotel as part of the international 'Golden Tulip
Hotels, Inns & Resorts' chain. It is intended that the hotel will operate not
only as a summer resort hotel (as is the case at present) but also as a business
hotel for the city of Constanta with operations throughout the year.


The Investment Adviser believes that the investment is attractive for a number
of reasons. Firstly, it believes the valuation at which the transaction is being
made compares well to the real estate value of the asset being acquired.
Secondly, it believes that bringing in a professional management company in
tandem with an international franchise, and operating the hotel all year round
as a resort and conference hotel, should substantially increase its
profitability.



For further information, please contact:

Reconstruction Capital II Limited
Ion Florescu
Tel: [phone]

Grant Thornton Corporate Finance (Nominated Adviser)
Philip Secrett
Tel: [phone]

LCF Edmond de Rothschild Securities (Broker)
Hiroshi Funaki / Claire Heathfield
Tel: [phone]


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