New Europe Property - Further investment

RNS Number:0597S
New Europe Property Investments PLC
10 April 2008

New Europe Property Investments plc ("the Company")

Further investment

New Europe Property Investments plc, the Central and Eastern European property
investment company listed on AIM, announces a further investment for a total
consideration of €16.9 million, net of acquisition costs and including €14.9
million of debt (of which approximately €0.9 million is vendor finance).

The Company has concluded an agreement to acquire 50% of a portfolio comprising
four retail centres, a medical office facility and a mixed use retail and
residential property (the "Portfolio").

The retail centres are situated in Leipzig, Bruckmuehl, Eilenberg and Frankfurt
(all in Germany). The shopping centre in Leipzig has a total site area of 12,712
sq m with a total lettable area of 5,864 sq m with 300 parking bays. The
Bruckmuehl property has a total site area of 15,941 sq m and the building has a
total lettable area of 5,899 sq m with 200 parking bays. The Eilenberg property
has a total site area of 15,000 sq m and the building has a total lettable area
of 3,727 sq m with 200 parking bays. The Frankfurt property has a total site
area of 1,652 sq m and lettable area of 1,093 sq m. The medical centre is
located in Munich in Germany - the six storey building has a total site area of
491 sq m with a total lettable area of 2,360 sq m. The mixed retail and
residential property is located in Moelln and has a site area of 10,111 sq m, a
lettable area of 5,510 sq m and 150 parking bays.

The vendor has agreed to provide an interest free loan by deferring payment of
€1.7 million of the purchase price for 100% of the Portfolio (ie approximately
€0.9 million of the price payable by the Company) for a period of five years.
The balance of the price payable by the Company will be paid to the vendor in
cash, funded in part by a seven year loan of €14 million from Nord LB, with the
remainder of the consideration being paid from the Company's existing cash
resources. The total net annual rent for the Portfolio is expected to be
approximately €2.4 million (the Company's share therefore being €1.2 million),
representing a yield on purchase price of approximately 7.22%.

10 April 2008

For further information please contact:

New Europe Property Investments plc +40 74 432 8882
Martin Slabbert

Smith & Williamson Corporate Finance Limited +44 20 7131 4000
Azhic Basirov

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

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