Tamar European Industrial Fund Ld : 04/01/2012 Tamar European Industrial Fund Ltd - Disposal

4 January 2012

Tamar European Industrial Fund ("TEIF" / "Fund')

TAMAR EUROPEAN INDUSTRIAL FUND SELLS

FURTHER ASSET IN FINLAND

Tamar European Industrial Fund today announces that it has sold a further asset in Finland to a private investor for a total consideration of €1.6 million.

The asset, an 11,804 sqm purpose-built factory, dating from the 1960s, is located at Lahnuksentie 215, Klaukkala, some 30 kms north of Helsinki.  The property was, until 2010, let to a single tenant.  Since the departure of the tenant, a leasing programme has been put in place and there are currently nine tenants at the asset, giving an occupancy rate of 58%.  However, the main tenant is leaving in June 2012 and, if no further lettings are secured, the occupancy level will then fall to 27%, resulting in a negative net operating income.  In view of this, the sale price reflects a discount to the latest Fund valuation as at September 2011 of almost 20%. 

This sale represents a continuation of the Nordic sales programme, following closely behind the sale of an asset at Nittylanpolku 5, in Helsinki as announced on 21 December.

"The decision to sell the asset at this point in its cycle reflects our belief that the leasing up of this asset will continue to be difficult in 2012 and that therefore its liquidity and value will also suffer.  The transaction offered a fast all-cash solution and it was considered preferable to take the hit on value now rather than risk a greater one over the short to medium term."

Realia acted for TEIF on the disposal.

-ENDS-

For further information, please contact:

Dido Laurimore / Olivia Goodall, FTI Consulting

Tel: [phone]