18th Jan 2007 07:00
Ottoman Fund Limited (The)18 January 2007 For Immediate Release 18 January 2007 The Ottoman Fund Limited Proposed agreement for new coastal development site The Ottoman Fund, which invests in the development of local housing and holiday homes in the major cities and coastal resorts of Turkey, is pleased to announce the signing of a memorandum of understanding in respect of prime coastal development land in Kazikli village in the district of Milas, approximately 25 miles away from Bodrum-Milas International Airport. Full documentation is expected to be signed within a month. The Fund, which is quoted on AIM, is managed by Development Capital Management (Jersey) Limited. Highlights •The Fund has entered into a memorandum of understanding with the shareholders of the Ado group of companies ("Ado Group"), one of Turkey's largest plastic and PVC manufacturers and cement producers, with an approximate turnover of $268 million: •The Fund shall purchase from the Ado Group a 50% share of 11 contiguous parcels of land totaling 274,524 m2, representing approximately 49,000 m2 of buildable area (based on current planning permission). •The purchase price for this share of the site will be $10 million, which is in line with the valuation of the land provided by Colliers International. •The parties will establish a new 50/50 joint venture company("JVCo"), which shall be responsible for the development of the site. Both parties shall contribute an initial $3 million to JVCo representing the first tranche of development financing. Total construction cost is estimated to be $36.5 million and is expected to be financed through a combination of debt and equity. •The site has planning consent for residential and tourism development (equating to approximately 400 units). A hotel, marina and spa concept is also being considered for the site. •Total sales proceeds of the project are estimated to be in excess of $90 million. •Construction of the development is targeted to commence within 6 months, with marketing and salesscheduled to commence within 4 months. The entire development is expected to take 30 months. The Chairman of the Fund, Sir Timothy Daunt said: "The Board of the Fund is pleased to announce its intention to begin another prestigious project close to Turkey's premier holiday resort of Bodrum. It is intended that the project will be developed in conjunction with the Ado group, which is a highly respected privately owned Turkish business and is one of the largest suppliers of building materials to Turkey and neighbouring countries. This project serves to balance the Fund's portfolio, as it will appeal to both local and international purchasers and brings the Fund closer to its stated goal of full investment by June 2007." List of contacts Development Capital Management 020 7355 7600Roger HornettTom Pridmore Buchanan Communications 020 7466 5000Charles RylandIsabel Podda Numis Securities Ltd 020 7776 1500Iain McDonaldBruce Garrow This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Ottoman Fund