RNS Number:0969D
European Convergence Property CoPLC
17 May 2006

European Convergence Property Co PLC - Acquisition

The board of ECPC is pleased to announce the conditional acquisition of Mall
Veliko Turnovo (MVT), a new shopping centre located in Veliko Turnovo, Bulgaria
for a total consideration of Euro29 million payable in cash.  Completion which is
expected in August 2006, is subject to certain performance targets being met to
ECPC's satisfaction.  The investment is expected to generate running yields in
excess of 11% on ECPC's net equity contribution over an assumed five-year
holding period of the asset.  It is anticipated that 60-65% of the acquisition
price will be debt financed.

Following completion, MVT will open to the public on 26th August 2006.

MTV will enjoy a major competitive advantage as the only modern and sizeable
shopping centre in Veliko Turnovo.  The city is the fifth largest in Bulgaria as
well as Bulgaria's previous capital city.  The shopping centre's catchment area
includes more than 300,000 inhabitants and it is located to the west of the city
on the principle main highway linking the city to Sofia in the west and Varna in
the east.  The shopping centre comprises c. 33,000 sqm of gross area including
c. 16,000 sqm retail floor area plus c. 1,500 sqm of office net floor area.
Ninety per cent of the lettable areas are pre-let to a mixture of well known
international and local retailers including Benetton, Esprit, Kenvelo, Germanos,
First Investment Bank

ECPC investment outlook

Further progress has been made in identifying and negotiating additional
investment properties in both Bulgaria and Romania.  The board believes that the
time frame for full investment implementation expressed in February, when it
announced ECPC's first investment, remains valid and looks forward to making
further investment announcements.

Enquiries:

European Convergence Property Company plc +44 (0)1624 640200
Anderson Whamond

Charlemagne Capital +44 (0)20 7518 2100
Christopher Fitzwilliam Lay/Varda Lotan

Panmure Gordon & Co +44 (0)20 7459 3600
Hugh Morgan/Stuart Gledhill

Website: www.europeanconvergence.com

Notes to editors:

ECPC is a property company focused on investing in commercial, retail and
industrial property in South-East Europe with a view to taking advantage of high
yields and the potential for capital appreciation.

The principal target countries are Romania, Bulgaria and Turkey. 
Opportunistically, the Company may also seek special situations investments in
these markets and in Central Europe, predominantly in Poland, Hungary and the
Czech Republic.

In June 2005, the Company raised EUR62.7 million before expenses through the
placing of 62.7 million new ordinary shares at a price of EUR1 per share.

The Company's investment manager is Charlemagne Capital (IOM) Limited which is
regulated by the Isle of Man Financial Supervision Commission for investment and
corporate service provider business.  The Charlemagne Group specialises in
managing funds in public and private equity in global emerging markets. Its
private equity and property team have historically focused on Central and South-
East Europe. The Charlemagne Group currently manages US$5.8 billion.



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