ECPC European Conv.

RNS Number:2878B
European Convergence Property CoPLC
01 August 2007


1 August 2007


                   EUROPEAN CONVERGENCE PROPERTY COMPANY PLC

                           ("ECPC" OR "THE COMPANY")
                                 _____________

                     DISPOSAL OF THREE ROMANIAN PROPERTIES

The Company is pleased to announce that its wholly owned subsidiary, ECPC
(Cyprus) Limited, has entered into conditional sale and purchase agreements with
DEGI Deutsche Gesellschaft fur Immobilienfonds m.b.H ("DEGI") the effect of
which is to dispose of its three Romanian properties (the "Disposals"). DEGI is
the real estate investment company of Allianz Group and is one of Germany's
leading property managers. The Disposals take advantage of the substantial yield
compression seen in the market over the past twelve months and, if they
complete, will generate a substantial capital gain for the Company.

The three investment properties being sold are Millennium Business Centre
(purchase price, Euro52.6m), PGV Tower (Euro27.4m), and Construdava (Euro26.5m). These
are all prime office locations based in Bucharest and their yields at point of
sale are approximately 6.40%, 6.55%, and 7.20% respectively.

The net consideration for the Disposals will be approximately Euro110.5m (after
transaction costs and adjustments of Euro5.5m for the net current assets of the
trading companies being sold). Final price determination will be dependent on
post closing audit. These properties were acquired for a combined cost of
Euro89.1m, and were re-valued earlier this year at Euro97.5m. The Disposals are
expected to complete by the end of November 2007.

After repaying the external financing of the projects the Company will be left
with net proceeds of approximately Euro49.9m (prior to any adjustments for items
such as deferred tax and management fees), which includes a gain of
approximately Euro15.9m on the initial equity investment.

The consideration for the Disposals will be payable in cash. The Company does
not intend to reinvest the proceeds of the Disposals.

The Investment Manager estimates that the net impact of the Disposals should, on
completion, lead to an increase in the Net Asset Value per share attributable to
the three properties being sold of approximately Euro0.15 per share when compared
to the NAV of 31 January 2007 announced on 21 March 2007. This figure assumes
the release of related provisions for deferred taxation (net impact of
approximately Euro0.08 per share) which were raised at the time of the 31 January
2007 revaluation, and it also includes a provision for expected performance fees
due to the Investment Manager of approximately Euro0.05 per share.

In addition, the rental income for Construdava has recently risen appreciably
and, in line with the original sales and purchase agreement, this has triggered
a further payment to the original vendor of Euro2.0m, representing a payment of
approximately Euro0.03 per share. The increase in rental incomes has been reflected
in the proposed disposal price of Construdava.

As the Disposals represent a disposal resulting in a fundamental change of
business under rule 15 of the AIM Rules for Companies, the Disposals will be
conditional upon, inter alia, the approval of the Company's shareholders at an
Extraordinary General Meeting. A circular outlining further details of the
Disposals and convening the Extraordinary General Meeting will be sent to
shareholders in due course.

If the Disposals complete, the Company will be left with one remaining
investment property; Mall Veliko Turnovo in Bulgaria.

Due to the substantial yield compression seen in the market, the Company does
not intend to pursue any further acquisitions and the Directors are currently
considering the methods for returning both the proceeds from the Disposals and
univested cash to shareholders in as short a time as possible.


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 (Broking) Limited                      +44 (0)20 7459 3600
Hugh Morgan/Jonathan Lack/Stuart Gledhill

Smithfield Consultants                                +44 (0)20 7903 4900
John Kiely/Anne Howalt

Website: www.europeanconvergence.com




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

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