Meinl European Land Limited

euro adhoc: Meinl European Land Limited
Capital measures
Meinl European Land: Property portfolio advanced to EUR 3,7 billion Capital increase in the amount of EUR 774 million starts today

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New projects totalling EUR 670 million

Jersey, 19. October 2006. Meinl European Land, the property company with a focus on retail properties in CEE continues its dynamic expansion and secures new projects with a total value of EUR 670 million. The new investments include a shopping centre in Togliatti / Russia, which was completed in 2005. The shopping centre with a total area of 50,000 sqm generates a yield of 11.5%. German based Metro group operates a "Real" hypermarket as anchor in the centre. The majority of the newly secured projects are development projects, which shall be completed between 2007 and 2009. For the first time Meinl European Land will invest also in Estonia, where the Company plans to develop several supermarkets in different cities for VP Market, the leading operator of supermarkets in the Baltic region. Following this new strategic regional extension to the Estonian market, Meinl European Land now operates in 10 markets in CEE.

Meinl European Land’s property portfolio advanced with these new acquisitions to EUR 3.7 billion. Annual rental income for the whole portfolio is estimated at EUR 350m.

New capital increase and bonds issue

To fund these new projects Meinl European Land as of today is offering new shares, increasing the share capital from EUR 901.5 million to EUR 1,126.5 million. From 19 October until 8 November 2006 Austrian and international investors may subscribe for 45 million shares at a subscription price of EUR 17.20 per share. The total proceeds are estimated at EUR 774 million.

Furthermore, the Company intends to increase existing bonds by a total value of up to EUR 300 million under the EUR 2 billion Medium Term Note Programme initiated in Summer 2006. By doing so Meinl European Land can benefit from the leverage effect by using this combination of debt and equity financing.

EUR 2 billion project pipeline

In addition to the standing investments and commitments totalling EUR 3.7 billion the Company has a current project pipeline of around EUR 2 billion. Approximately 30% of these projects under due diligence have already been approved by the board of Meinl European Land and are expected to be signed in the near future.

EUR 260 million capital appreciation for development projects

Approximately 65% of Meinl European Land’s current total portfolio are development projects. The majority of these projects are forward purchase agreements, which are transferred on completion on the basis of contractually agreed yields. Since these yields are significantly higher than current market yields on comparable operating properties, there is considerable potential for capital appreciation, which Meinl European Land can realise once the projects are completed. Based on current market yields, the market value of completed developments exceeds their agreed transfer price or the expected development costs by around EUR 260 million. Assuming further yield compression in Eastern Europe, there is scope for the upside potential to increase even further by the time projects presently under development are completed.

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ots Originaltext: Meinl European Land Limited
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Further inquiry note:
Pleon Publico Public Relations & Lobbying
Mag. Claudia Müller-Stralz
Tel.: ++43 (0) 1/717 86 107

Branche: Real Estate
ISIN:      AT0000660659
WKN:        066065
Index:    Standard Market Auction
Börsen:  Wiener Börse AG / official dealing

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