OTM Ottoman

RNS Number:7117P
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 7600
Roger Hornett
Tom Pridmore

Buchanan Communications 020 7466 5000
Charles Ryland
Isabel Podda

Numis Securities Ltd 020 7776 1500
Iain McDonald
Bruce Garrow


      



                      This information is provided by RNS
            The company news service from the London Stock Exchange

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