ECDC Eur.Conv.Dev

TIDMECDC

RNS Number : 1361C

European Convergence Develop. CoPLC

02 March 2011

02 March 2011

EUROPEAN CONVERGENCE DEVELOPMENT COMPANY PLC

Further Investment in Cascade Eurotower Office Development

European Convergence Development Company PLC ("ECDC" or the "Company") which is managed by Charlemagne Capital (IOM) Limited (the "Manager") announces that it has invested a further EUR317,647 in its Romanian joint venture associate company, Cascade Park Plaza S.R.L. ("CPP"). The investment is in the form of a new shareholder loan which will rank in priority to all pre-existing shareholder equity and shareholder loans.

The investment forms part of a total of EUR2 million investment in CPP, made in conjunction with another company managed by the Manager which is investing the balance on the same terms as the Company.

The investment was an integral part of the restructuring of the finances of CPP. At the same time as agreeing the capital restructuring, one of the lending banks has agreed the restructuring of its initial lease and signed for 3,250 sqm of office space and 231 sqm of retail space for a period of ten years. This means the Gross Lettable Area of c. 16,300 sqm is now 80% let and will generate sufficient rent to ensure that CPP is both cash flow positive and able to meet its financial covenants. As part of this additional financing, the principal terms of the original investment loan remain in place.

Investment Update

Additionally, ECDC provided a further EUR66,667 in equity to each of the structures holding the Iasi and Oradea investments to cover set up costs for each of the holding structures. The funding has been proportionally matched by the co-investor based on total shareholding.

Enquiries:

 
 European Convergence Development Company 
  plc                                         +44 (0)1624 640200 
 Anderson Whamond 
 
                                              +44 (0)207 518 
 Charlemagne Capital                           2100 
 Varda Lotan / Christopher Fitzwilliam Lay 
 
 Galileo Fund Services Limited                +44 (0)1624 692600 
 Ian Dungate, Company Secretary 
 
 Panmure Gordon & Co. Limited                 44 (0)20 7459 
                                               3600 
 Hugh Morgan 
 Abhishek Majumdar 
 
 Smithfield Consultants                       +44 (0)20 7360 
                                               4900 
 John Kiely 
 Gemma Froggatt 
 

Website: www.europeanconvergencedevelopment.com

This information is provided by RNS

The company news service from the London Stock Exchange

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