TCF Theracryf Plc

TIDMTCF

RNS Number : 3879S

Terra Catalyst Fund

07 July 2015

7 July 2015

TERRA CATALYST FUND

Spazio - Telecom Italia Leases

Terra Catalyst Fund (the "Company") (AIM: TCF) announces that it has today been informed by Spazio Investment NV ("Spazio"), the Company's sole remaining material holding, that Spazio Industriale has concluded the renegotiation of the 144 existing lease contracts it has with Telecom Italia (the "Telecom Italia Assets").

The Telecom Italia Assets constitute approximately 40%, by value, of Spazio's property portfolio.

Spazio Industriale, the Italian registered fund through which Spazio invests in Italian property, agreed the following main terms for the Telecom Italia Assets:

   --   Effective start date of 1(st) June 2015; 
   --   Average lease duration of 16.96 years (based on contract expiration); 
   --   No break option; 
   --   75% indexation to annual CPI (upwards only with no catch-up if CPI is negative in any year); 

-- Ordinary maintenance, extraordinary maintenance and insurance costs to be borne by Telecom Italia (previously these were approximately EUR800,000 p.a.);

   --   Renegotiated leases agreed at a 15% discount to the current rental stream. 

The Company is pleased with this outcome for Spazio and as a result, expects a small uplift from the latest open market valuation of the Telecom Italia Assets. The Telecom Italia Assets are an attractive investment proposition for institutional investors as overseas interest in portfolios of well leased Italian commercial property assets continues to increase.

Spazio Industriale will continue to concentrate on its strategic plan to improve the marketability of the portfolio through asset refurbishment and re-leasing, with a focus on increasing the rental income and extending lease duration.

-ends-

ENQUIRIES TO:

Terra Catalyst Fund

Mike Haxby, Director

www.terracatalystfund.com

tel: +44 (0)1624 690 900

Smith & Williamson Corporate Finance Limited

Azhic Basirov

Tel: +44 (0)20 7131 4000

This information is provided by RNS

The company news service from the London Stock Exchange

END

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