Equest Balkan in Bucharest car park deal

LONDON (SHARECAST) - Equest Balkan Properties built gains today as the property investment company focused on South Eastern Europe announced the purchase of a stake in a Bucharest car park development and said its portfolio is performing to expectations.

The group said it has bought a 75% stake in Trigon Properties, the sole owner of Man Construct-UN-Impex SRL, a Romanian development company that is developing the Europark multi-storey car park project.

The initial acquisition price for the holding is €2.75m subject to a further investment commitment for project development of about €16m. The predicted net initial yield is in excess of Equest’s target 11% yield.

In addition, the firm said that during the year to 31 December 2006 it completed 11 transactions in Romania, Bulgaria and Serbia and had invested or committed to property expenditure of €335m.

Together with the acquisition of the Europark Car Park development in Bucharest this rises to around €350m.

It added that the company's pipeline of new opportunities remains strong comprising investment properties and related capital expenditure of around €50m, which will take total investment and related commitments to €400m within the next few months.

Full year results will be issued on 18 April.

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