RNS Number:8582I
Charlemagne Capital Limited
13 September 2006
13 September 2006
Charlemagne Capital launches new East European
private equity property company
Charlemagne Capital Limited ("Charlemagne", or the "Group") announces the
closure of its new specialist private equity property fund, European Convergence
Development Company ("ECDC"), having raised Euro30 million via a private placing.
ECDC is a private company and intends to list on the AIM market of the London
Stock Exchange in 2007. Funds raised thus far by ECDC will be co-invested
alongside partner developers in property projects in the target markets of
Bulgaria, Romania and Turkey. Opportunities for capital gains will be sought in
residential, office and retail projects. Over the last year there has been a
significant increase in the presence of institutional investors seeking
completed property projects in the target countries. The projects ECDC will
invest in will have a 2-3 year life span before they will be sold on.
This is the second specialist private equity real estate company launched by
Charlemagne Capital, following the listing of the European Convergence Property
Company plc (''ECPC'') on AIM in June 2005 which raised Euro60m of capital. ECPC
was established to take advantage of opportunities that exist in the property
investment makets of South-East Europe, in particular Turkey, Bulgaria and
Romania by investing in high yielding completed property projects. ECPC is
intended to have a seven year life and it is anticipated that it will be fully
invested by early 2007. It has invested Euro112 million through a combination of
equity and debt in its first year of operation.
Charlemagne Capital's specialist funds strategy is to remain focused on
exploiting opportunistic valuation anomalies as and when they arise. The Group
has focused its efforts on growing the existing specialist funds where possible,
developing structured products and establishing further private equity
investments in financial services and property.
Jayne Sutcliffe, Chief Executive commented:
"The successful private placing for the ECDC represents another milestone for
Charlemagne Capital's private equity team. Our knowledge, track record and
expertise of the fast growing property markets in Bulgaria, Romania and Turkey
should enable ECDC to leverage the attractive yields and anticipated capital
appreciation in these markets in the run up to and following EU accession."
Enquiries:
Charlemagne Capital Tel. 020 7518 2100
Jayne Sutcliffe, Chief Executive
David Curl, Finance Director & Head of Investment
Smithfield Consultants Tel. 020 7360 4900
John Kiely
George Hudson
This announcement is not for publication or distribution to persons in the
United States of America, its territories or possessions or to any US person
(within the meaning of Regulation S of the US Securities Act of 1933, as
amended). Neither this announcement nor any copy of it may be taken or
transmitted into Australia, Canada or Japan or to Canadian persons or to any
securities analyst or other person in any of those jurisdictions. Any failure to
comply with this restriction may constitute a violation of United States,
Australian, Canadian or Japanese securities law. The distribution of this
announcement in other jurisdictions may be restricted by law and persons into
whose possession this announcement comes should inform themselves about and
observe any such restrictions.
Notes to Editors:
Charlemagne Capital is a specialist emerging markets equity investment
management group. Charlemagne Capital Limited was admitted to the AIM market of
the London Stock Exchange on 4 April 2006.
Charlemagne's product range comprises mutual funds, hedge funds and
institutional and specialist fund products primarily covering GEMs, Eastern
Europe, Latin America and Asia. Charlemagne Capital employs a range of
investment strategies including: long only, long/short, structured products and
private equity. Charlemagne Capital's funds aim to exploit the inefficiencies in
the market via a strict bottom up approach and focused stock selection.
Through the strong long-term investment performance track record of its
principal funds, Charlemagne Capital has established itself as a market leader
in emerging markets investment management. Its performance has been recognised
through numerous awards and top rankings for its funds, including the 2005
Standard and Poor's 5-year best performing fund award in Austria, the 2006 Swiss
Lipper Leaders 5-year award winner for Emerging Markets Europe and an AAA-rating
by Standard & Poor's for its Magna Eastern European Fund (a sub-fund of Magna
Umbrella Fund Plc).
This information is provided by RNS
The company news service from the London Stock Exchange
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