EBP East Balkan

 

TIDMEBP 
 
RNS Number : 0256E 
Equest Balkan Properties PLC 
11 December 2009 
 
 
 
 11 December 2009 
 
 
Equest Balkan Properties plc 
("EBP" or the "Company") 
New investment management arrangements 
 
 
The Board of EBP announces that the Company and Equest Property Management 
Limited ("EPML"), the Company's investment manager, on 11 December 2009 entered 
into new investment management arrangements that replaced the previous agreement 
between the Company and EPML. 
Under the new arrangements, investment management services will now be provided 
to the Company directly by companies in the Balkans all of whom are, or will be, 
companies associated with EPML. These companies will also provide further 
support to the Company in relation to its current property disposal programme. 
The Board of EBP believes that these arrangements, which will take effect from 
1st January 2010, will result in significant cost savings for the Company. The 
new fees are largely on a fixed fee per property basis and are expected to 
result in savings in excess of 50% compared with the current year management 
fees of approximately EUR 2.6 million. 
EBP and EPML have entered into a transitional agreement for the continuation of 
certain asset management services in relation to the Company's portfolio of 
assets until 31 March 2010, including the preparation of the 2009 annual 
accounts. In addition, a new asset management agreement has been entered into 
between the Company and Blue Water Property S.R.L. (an affiliated company of 
EPML) dealing with the provision of certain services in relation to the 
Company's Romanian property portfolio with effect from 1 January 2010. The 
Company (or its subsidiaries) will be entering into similar asset and/or 
property management agreements with other local companies affiliated with EPML. 
The entry into the new investment management arrangements with EPML is 
classified as a transaction with a related party for the purposes of the AIM 
Rules. In accordance with the AIM Rules, the directors of the Company, having 
consulted with the Company's nominated adviser, Arbuthnot Securities Limited, 
consider that the terms of the new investment management arrangements are fair 
and reasonable insofar as the Company's shareholders are concerned. 
Commenting, Donald Lake, Chairman of the Board of Directors of EBP, said: 
"These arrangements are a very positive step towards EBP achieving one of its 
key strategic objectives, which is to return the company to profitability by 
reducing ongoing costs. 
"We thank EPML for its co-operation in this matter and look forward to a 
continued and positive working relationship with the various property teams in 
the Balkan region." 
 
 
-Ends- 
 
 
 
 
  Enquiries: 
+----------------------------+-------------------------+-------------------------+ 
| Equest Balkan Properties   | Donald Lake (chairman)  | Tel: +44 (0)1624        | 
| Plc                        |                         | 662 610                 | 
+----------------------------+-------------------------+-------------------------+ 
| Arbuthnot Securities       | Alastair Moreton        | Tel: +44 (0)20 7012     | 
|                            |                         | 2000                    | 
+----------------------------+-------------------------+-------------------------+ 
| IOMA Fund and Investment   | Philip Scales           | Tel: +44 (0)1624 681250 | 
| Management Limited         |                         |                         | 
+----------------------------+-------------------------+-------------------------+ 
 
 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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