TIDMECPC 
 
RNS Number : 7565Y 
European Convergence Property CoPLC 
09 September 2009 
 

09 September 2009 
 
 
EUROPEAN CONVERGENCE PROPERTY COMPANY PLC (THE "COMPANY" OR "ECPC") 
 
 
Property Revaluation and NAV 
 
 
The Board of ECPC announces the results of an independent revaluation of the 
Company's remaining investment property, Mall Veliko Turnovo ("MVT") in 
Bulgaria. 
 
 
The valuation was carried out by SHM Smith Hodgkinson ("SHM") as at 30 June 
2009. 
 
 
SHM is a British firm of Chartered Surveyors established in 1860 and 
specialising in property and corporate asset consulting and valuation services. 
In 2004, SHM was acquired by the Gordon Brothers Group of USA. GB Group has 
approximately 300 employees worldwide including SHM offices in London, 
Manchester, Leeds, Bucharest, Belgrade and Kyiv. The firm's Bucharest office 
leads its services across the SEE region and in 2008 completed valuations for 
assets totalling approximately EUR4 billion. 
 
 
Taking into account the continued uncertainty in global economic and credit 
market conditions, and the increasingly visible impact of these in Bulgaria, SHM 
have increased their expected exit yield, and increased the discount rate 
applicable to future cashflows compared to their view taken at December 2008. 
 
 
SHM have valued the property at EUR23.6m, therefore showing a decrease in the 
market value of MVT of EUR4.3m from the value of EUR27.9m as at 31 December 2008. 
The decrease reflects the continuing impact on the retail property investment 
market in Bulgaria resulting from the current global credit restrictions and 
economic conditions. 
 
 
The valuation of the asset is analysed below. 
 
 
+---------+------------+------------+-------------+------------+-------------+-----------+--------+ 
|      EURm |     Equity |   External |       Total |  Valuation | Revaluation |  Decrease |      % | 
|         | Investment | Borrowings | Acquisition |      as at |      as at  |      from |        | 
|         |            |            |       Cost* | 31/12/08** |    30/06/09 |  previous |        | 
|         |            |            |             |            |             | valuation |        | 
+---------+------------+------------+-------------+------------+-------------+-----------+--------+ 
| Mall    |       10.6 |       19.2 |        29.8 |       27.9 |        23.6 |     (4.3) | (15.4) | 
| Veliko  |            |            |             |            |             |           |        | 
| Turnovo |            |            |             |            |             |           |        | 
+---------+------------+------------+-------------+------------+-------------+-----------+--------+ 
 
 
* including transaction costs 
** by Jones Lang Lasalle 
 
 
The result of this revaluation on the net assets per share of the Company, 
excluding other factors, will be a reduction of 0.07 Euro from the published NAV 
as at 31 Dec 2008, which would result in a NAV per share of EUR0.14. It should be 
noted that this calculation is for illustrative purposes only and may differ 
from the actual current NAV. 
 
 
The Company's full year results to 30 June 2009 are currently under audit, and 
will reflect this valuation and will include an updated audited NAV per share. 
These are expected to be announced by late September. 
 
 
The valuation of the Company's remaining property asset is based on a number of 
estimates and assumptions concerning future events which may or may not prove 
correct. 
 
 
In Bulgaria, as worldwide, the outlook for the economic environment and local 
credit markets remains uncertain. Given the importance of debt to the valuation 
of property assets, changes in the debt market over the coming months may have 
material effects on the Company's valuation. 
 
 
For further information please contact: 
 
 
+-------------------------------------------+------------------+ 
| Charlemagne Capital                       | +44 (0)207 518   | 
|                                           | 2100             | 
+-------------------------------------------+------------------+ 
| Varda Lotan / Christopher Fitzwilliam Lay |                  | 
+-------------------------------------------+------------------+ 
|                                           |                  | 
+-------------------------------------------+------------------+ 
| Galileo Fund Services Limited             | +44 (0)1624      | 
|                                           | 692600           | 
+-------------------------------------------+------------------+ 
| Ian Dungate, Company Secretary            |                  | 
+-------------------------------------------+------------------+ 
|                                           |                  | 
+-------------------------------------------+------------------+ 
| Panmure Gordon (UK) Limited               | +44 (0)20 7459   | 
|                                           | 3600             | 
+-------------------------------------------+------------------+ 
| Hugh Morgan                               |                  | 
+-------------------------------------------+------------------+ 
| Stuart Gledhill                           |                  | 
+-------------------------------------------+------------------+ 
|                                           |                  | 
+-------------------------------------------+------------------+ 
| Smithfield Consultants                    | +44 (0)20 7360   | 
|                                           | 4900             | 
+-------------------------------------------+------------------+ 
| John Kiely                                |                  | 
+-------------------------------------------+------------------+ 
| Gemma Froggatt                            |                  | 
+-------------------------------------------+------------------+ 
 
 
www.europeanconvergence.com 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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