Improvement in Vacancy Rates and Tenant Base

Arricano Real Estate Plc (ARO) Improvement in Vacancy Rates and Tenant Base 08-Feb-2017 / 14:42 GMT/BST Dissemination of a Regulatory Announcement, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement.

8 February 2017

Arricano Real Estate plc('Arricano' or the 'Company' or, together with its subsidiaries, the 'Group')Improvement in Vacancy Rates and Tenant Base

Arricano (AIM:ARO), a leading real estate developer and shopping mall operator in Ukraine, is pleased to announce, a significant improvement in vacancy rates in 2016 across its portfolio of five shopping centres which together comprise 147,800 m2 of gross leasable area.

As at 31 December 2016, occupancy improved to 98.3% versus 96.2% on 31 December 2015. A good performance in a challenging economic period during which the Company added 179 new tenants leasing 23,404 m2 of retail space. The portfolio now has a tenant base of 750 up by 12% (31 December 2015: 670 tenants).

Of particular note is the improvement in occupancy at the Prospect Shopping Mall, a highly creditable achievement given that this site was only completed in September 2014 and is now 97.6% let. The Company's success has been built upon developing strong and long-term tenant relationships together with focusing on creating a positive experience for consumers when they visit an Arricano shopping centre and providing a service led approach to supporting its tenant base.

Mikhail Merkulov, CEO of Arricano, commented: 'This letting performance reflects well on the Company and proves the strength of our lettings team and their ability to work with tenants and deliver improved turnover and rental income. Our strategy is not to drive short-term performance but to create long-term tenant relationships and focus on creating value partnerships with our tenants, in turn making our shopping centres welcoming, interesting and innovative places which bring people together to shop and socialise.'

For further information please contact:

Arricano Real Estate plcMykhailo Merkulov Tel: +380 44 569 6708

Nominated Adviser and Joint Broker

Smith & Williamson Corporate Finance LimitedAzhic Basirov Tel: +44 (0)20 7131 4000

Joint Broker

Whitman Howard LimitedRanald McGregor-Smith Tel: +44 (0)20 7659 1234

Financial PR

NovellaTim Robertson/Toby Andrews Tel: +44(0)20 3151 7008