€82.5 million acquisition of the Interfruct portfolio in Hungary (HU)

Dawnay Day Carpathian PLC announced that it has acquired a portfolio of 23 Interfruct properties in a sale and leaseback deal from SCD International Ltd, for a purchase price of €82.5 million representing an initial yield of 7.80%, net of acquisition costs. This acquisition represents the tenth transaction by the Company since the IPO in July 2005.

The 23 cash and carry stores are located in Budapest and major regional cities throughout Hungary, and have a total gross lettable space of 105,000 m². The stores are let on new 15 year leases to Interfruct kft, Hungary's largest cash and carry retailer, at an average rent of €5.00 per m² per month. The properties are situated on land plots totalling 345,000 m², several of which offer development potential in the longer term. On one of the sites in Budapest, which overlooks the Danube, terms have been agreed with the tenant to explore shorter term development opportunities.

The portfolio is being purchased in 2 phases, with the first phase of the purchase comprising 17 properties, financed by equity of €49,5 million, having already completed. The additional properties will be transferred to the portfolio on or before 30 March 2007 once the vendor has fulfilled a number of conditions. Dawnay, Day expects to refinance part of the equity used for the initial purchase within the next 6 weeks.

Commenting on this announcement, Rupert Cottrell, Chairman of Dawnay, Day Carpathian said: "This is an excellent transaction, which adds a large portfolio of property assets with a well established tenant and has the added advantage of providing potential development opportunities. Today's announcement also represents the fund making good progress towards meeting its investment targets for 2006."

Source: Dawnay Day

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