» First Day of Dealings

First Day of Dealings

Posted on: 22 August 2007

Not for release, publication or distribution in, or into, the United States, Canada, Australia and Japan.

New Europe Property Investments plc is pleased to announce the commencement of trading in its ordinary shares on AIM, following the placing of such shares, raising €25.75 million (before expenses). The ordinary shares will trade on AIM under the RIC code "NEPI" at 8:00 am today.

Under the terms of the placing, a number of the placees have agreed to subscribe for further shares at the Company's option. The relevant placees have irrevocably committed to subscribe for up to 13,917,800 ordinary shares in the Company at the placing price, in addition to the shares being subscribed for pursuant to the placing. The Company has the option to draw down these additional funds by no later than 31 December 2007. As a result, the Company has combined capital commitments of €53.59 million.

Placing Statistics
Placing Price€2.00
Number of Ordinary Shares being issued pursuant to the Placing12,877,200
Expenses of the Placing payable by the Company€0.62 million
Net proceeds of the Placing receivable by the Company€25.13 million
Market capitalisation at the Placing Price€25.75 million

New Europe Property Investments plc is a newly incorporated Isle of Man company with an investment objective to provide shareholders with an opportunity to invest in a dividend paying, long term closed-ended fund that could serve as a vehicle for investors seeking Central and Eastern European investment opportunities that yield stable absolute returns and portfolio diversification.

The Company's investment strategy will initially focus on investing in Romania. The Company's investments will include investments in income producing high quality office, retail, industrial and logistics properties. These types of investments will include, but will not be limited to, sale and leaseback transactions and acquisitions of single properties or portfolios of multiple properties.

Investment opportunities will also be sought in development property (which may include establishing joint ventures with developers) to the extent to which these investments can be structured to allocate the majority of the development risk and/or risks related to leasing the assets to the developer or another third party. Up to 5 per cent. of the Group's investments may be in land which is yet to be developed and up to a further 5 per cent. of the Group's investments may be in assets that are not income producing at the time of acquisition, but which can be converted and/or refurbished post acquisition to become income producing. Although the Company's initial investment focus will be mainly on Romania, in due course the Group will also consider investment opportunities elsewhere in Central and Eastern Europe.

The Investment Advisor, NEPI Investment Management Limited ("NEPM"), is responsible for sourcing investment opportunities, conducting investment analysis and assessments in relation to potential or existing investments, recommending disposal strategies for each investment, recommending a debt strategy for each investment (if required), and for negotiating the finance documents with the lender selected by the Group. NEPM is a private entity incorporated in the British Virgin Islands.

Based on current market conditions and in the absence of unforeseen circumstances, the Investment Advisor anticipates that the Company should be substantially invested or committed for investment within 12 months of Admission, although there can be no guarantee of this.

Peter Gray, Chairman of the Company, commented, "We believe that the launch of this investment company enables shareholders to participate in the development of a region that is experiencing unprecedented growth and opportunities with its accession to the EU. We hope that the Company will not only achieve excellent returns for its shareholders but that it will make a significant contribution to the future development of Romania."

Smith & Williamson Corporate Finance Limited is acting as the Company's nominated advisor and broker.