New Manx Property Fund To Focus On Eastern Europe

by Phillip Morton, Investors Offshore.com

03 August 2005

Attracted by the island's tax structure, a new property fund specializing in commercial Eastern European real estate has been launched in the Isle of Man.

According to a report in the Isle of Man Online, the Dawney Day Carpathian Plc has raised £140 million from its float on London's Alternative Investment Market (AIM) and is aiming to build up a EUR1 billion property portfolio consisting of retail properties, such as supermarkets, shopping centres and warehouses, across Eastern Europe. The firm indicates that it will make its first purchases in Estonia.

Rupert Cottrell, chairman of Dawney Day Carpathian, explained that: "Its based in the Isle of Man because its a tax efficient way of creating an investment company aiming to generate high absolute returns."

He added that:

"Our managers, Dornay Day, are a highly successful property investment group who have achieved enviable returns per annum on equity invested. One of its funds, the Puma Fund, has produced a 47 per cent investor return per annum, after costs and expenses."

"We are dealing with the new accession countries, I believe that retail property investment will be extremely rewarding. This is a view that is shared by a number of major British retailers that have got leases on commercial sales areas over there."

The company is aiming to deliver an annual dividend yield above 10% on invested funds, and it anticipates a dividend of 3% by December 31 this year, rising to 7% for the year ending December 31 2006, with yields based on the initial 100p placing price.

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