TIDMERET

RNS Number : 9146W

European Real Estate Inv Tst Ltd

06 January 2014

European Real Estate Investment Trust Limited

6 January 2014

Valuation Announcement and Strategy Update

The Board of European Real Estate Investment Trust Limited (the "Group") announces the valuation of the Group's property portfolio as at 31 December 2013 and provides an update on strategy following the repayment of all Lloyds Banking Group (LBG) liabilities.

The value of the property portfolio as at 31 December 2013 was EUR68.2 million. This compares, on a like-for-like basis (following the sale of the properties at Duren, Dusseldorf and Frankfurt), to a 30 June 2013 value of EUR75.1 million, a decrease of 9.1%. The majority of the reduction arose on the four Spanish assets leased to Panrico where the valuer has adjusted the valuations based on the deteriorating covenant strength of the tenant.

The valuations are provided by the independent valuer (CBRE) in accordance with the Royal Institution of Chartered Surveyors (RICS) Appraisal and Valuation Standards and show the "Market Value" assuming an asset sale of each property and allow for acquisition costs incurred by purchasers.

As previously announced, the group now has no debt liabilities. The sale of the Europort property in Frankfurt enabled the Group on 23 December 2013 to pay down all remaining debt and secure the early debt repayment incentive agreed with LBG. This reduced the sum that was previously due by a total of EUR17.1m. The Group now has no outstanding debt, fx/interest rate derivative or exit fee liabilities.

Extinguishing the LBG facility provides the Group with greater operational flexibility to continue to manage the remaining properties in Germany, France and Spain in the best interests of the shareholders. Against this background, the Board and the Manager are reviewing the best strategic options to maximise shareholder returns from the Group and its remaining investments in the future.

This announcement is not a preliminary statement of the Group's financial results. The financial information contained herein is not audited and is subject to change. The Group expects to publish its financial statements for the year ended 31 December 2013 in March 2014.

For further information, please contact:

Praxis Fund Services Limited

   Shona Darling                                       Phone: +44(0) 1481 755528

Cenkos Securities plc

   Dion Di Miceli                                        Phone: +44 (0) 20 7397 1921

Schroder Property Investment Management Ltd

   Duncan Owen / Tony Smedley             Phone: +44(0) 20 7658 6000

This information is provided by RNS

The company news service from the London Stock Exchange

END

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