12th Jul 2006 13:08
Ottoman Fund Limited (The)12 July 2006 For Immediate Release 12 July 2006 The Ottoman Fund Limited Valuation as at 31 May 2006 The Board of The Ottoman Fund Limited (the "Fund") is pleased to announce theFund's second quarterly valuation for the period ending 31 May 2006. The Fundspecialises in providing financing to developers of local housing and holidayhomes in the major cities and coastal resorts of Turkey, The Fund is managed by Development Capital Management (Jersey) Limited. • The net asset value of the Fund is £138,215,946 (92.14p per share) • The net present value of the Fund (excluding the value of the Fund's development in Bodrum) is £139,222,740 (92.82p per share) • Indicative net present value of developing the land purchased at Bodrum £5.45m (3.64p per share) Valuation The project to which Fund has committed financing has been valued by theproperty advisor DTZ Pamir & Soyuer in March, at approximately €1,100/m2 inaccordance with the Royal Institute of Chartered Surveyors' valuationmethodology on an "as built condition, open market comparative" basis. Takingthis valuation and discounting back the expected cash flows from the project at11%, together with the land investment valued at cost, produces a net presentvalue (NPV) for the Fund of £139.2m (before tax), equivalent to 92.82p pershare, as at 31 May 2006. The NPV for the Fund has been calculated excluding the potential gains fromdeveloping the plot of land recently purchased at Bodrum. Based upon theManager's cost and valuation estimates and discounting back at a higher rate of15% produces a pre-tax net present value for the project of £5.45m or 3.6p pershare. This will be added to future net present value calculations once thedevelopment plans and costs have been finalised. Investors are no doubt aware of the recent rises in Turkish short term interestrates. In arriving at a suitable discount rate for the Fund's investments, theManager has taken into consideration the fact that the Fund has entered intofixed contracts denominated in Euros and US Dollars, thereby largely isolatingthe Fund from Lira exchange rate risk. These valuations aim to provide a measure of the progress of the Fund and shouldnot be construed as a profit forecast. List of Contacts Development Capital Management 020 7355 7600 Roger Hornett Andrew Mitchell Buchanan Communications 020 7466 5000 Charles Ryland Numis Securities Ltd 020 7776 1500 Andrew Dawber Ian McDonald This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Ottoman Fund