RNS Number:0646M
Northern European Properties Ltd
18 January 2008



Northern European Properties Limited

Sale of Finnish Portfolio

Northern European Properties Limited ("NEPR" or the "Company"), which invests in
real estate opportunities in the Nordic and Baltic regions and Russia, is
pleased to announce today that it has signed an  agreement to sell a portfolio
of 39 properties, principally in Finland, through the sales of shares, to a real
estate fund managed by CapMan. The net sale proceeds amount to approximately Euro
800 million, which is in line with the external valuation by DTZ as at 30 June
2007. The agreement contains a price adjustments mechanism following
finalisation of technical due diligence which will be completed by March 2008.
The agreed purchase price is based upon a desk top technical due diligence
exercise. The gross rental income for the sold properties was approximately Euro 50
million.

The portfolio consists of all of NEPR's hotel assets in Finland, and also
includes one hotel in Are, Sweden. The majority of the hotel properties are
operated by major Finnish operators including Restel Oy, Sokotel Oy and Scandic
Hotels Oy under international brands such as Crowne Plaza, Holiday Inn,
Radisson, Ramada and Holiday Club, as well as Finnish brands including Cumulus,
Sokos Hotels and Palace Hotels.  Following completion of this transaction, NEPR
will have sold all of its assets in Finland.

The transaction is expected to complete during Q1, 2008.  NEPR is providing the
purchaser with a vendor loan note of Euro 25 million which is aimed to be repaid
within a year. In the event it is not repaid and certain conditions are
fulfilled it can be converted into equity in the fund on pari passu basis with
all other investors.

The Board continues to believe that Russia offers an attractive real estate
investment opportunity, where the combination of rental increases and a further
yield shift should provide attractive returns for shareholders. As it has
previously stated, and in the light of current market conditions, the Board will
take a cautious approach to further acquisitions. The proceeds from the disposal
announced today will be used with priority to pursue further acquisitions in
Russia on a highly selective basis, and to the extent attractive opportunities
are not available, the Company will return capital to shareholders. The Board
will update shareholders further when it announces the Company's preliminary
results to 31 December 2007 in March 2008.

Jens Engwall, Chairman of NEPR said: "We are delighted to have agreed this
substantial transaction which is in line with the Board's previously announced
strategy to optimise the value of our existing Nordic portfolio and take
advantage of continuing liquidity in that market.  It serves to verify the
Company's reported property valuations and further improves NEPR's cash position
and financial flexibility."

Enquiries:


Jens Engwall, Chairman                                Tel: +46 70 690 65 50

Thomas Lindeborg, CEO                                 Tel: +44 20 7499 40 60

Per Lindblad, CFO                                     Tel: +46 8 456 32 51



      Hotel name                              City               sqm        Rooms

    1 Crowne Plaza Helsinki                   Helsinki           32 600        349
    2 Cumulus Airport                         Vantaa             12 285        278
    3 Cumulus Hameenlinna                     Hameenlinna         7 214        100
    4 Cumulus Jyvaskyla                       Jyvaskyla           9 540        203
    5 Cumulus Kemi                            Kemi                5 495        184
    6 Cumulus Koskikatu                       Tampere             9 800        230
    7 Cumulus Kuopio                          Kuopio              4 147        141
    8 Cumulus Oulu                            Oulu               12 250        207
    9 Cumulus Pinja                           Tampere             3 070         60
   10 Cumulus Rauma                           Rauma               4 000        103
   11 Cumulus Rovaniemi                       Rovaniemi           5 142         64
   12 Cumulus Seinajoki                       Seinajoki           8 935         71
   13 Holiday Club Katinkulta                 Vuokatti            4 723        116
   14 Holiday Club Kuusamo                    Kuusamo            12 100        125
   15 Holiday Club Oulun Eden                 Oulu               14 762        169
   16 Holiday Club Saariselka                 Saariselka         10 001        139
   17 Holiday Club Tampereen Kylpyla          Tampere             8 519         92
   18 Holiday Club Are                        Are, Sweden        22 459        205
   19 Holiday Inn Garden Court                Vantaa              6 799        280
   20 Holiday Inn Oulu                        Oulu                5 587        154
   21 Holiday Inn Tampere                     Tampere             6 470        135
   22 Holiday Inn Turku                       Turku               7 200        199
   23 Palace Linna                            Helsinki            6 869         48
   24 Radisson SAS Vaasa                      Vaasa              22 349        285
   25 Ramada Airport                          Vantaa             12 269        292
   26 Rantasipi Aulanko                       Hameenlinna        15 584        246
   27 Rantasipi Eden                          Nokia              20 610        204
   28 Rantasipi Joutsenlampi                  Joutsa              6 534         42
   29 Rantasipi Laajavuori                    Jyvaskyla          19 333        175
   30 Rantasipi Pohjanhovi                    Rovaniemi          15 000        215
   31 Rantasipi Rukahovi                      Rukatunturi        14 000        180
   32 Rantasipi Sveitsi                       Hyvinkaa           16 970        194
   33 Rantasipi Tropiclandia                  Vaasa              10 639        184
   34 Scandic Plaza                           Turku               5 314        117
   35 Scandic Rovaniemi                       Rovaniemi           5 692        167
   36 Sokos Hotel Albert                      Helsinki            4 561         95
   37 Sokos Hotel Pasila                      Helsinki            7 889        178
   38 Sokos Hotel Seurahuone                  Kotka               7 700        128
   39 Sokos Hotel Vaakuna                     Hameenlinna         4 583        123




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

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