Land Purchase in Bodrum

RNS Number:0559C
Ottoman Fund Limited (The)
27 April 2006


For Immediate Release                                              27 April 2006


                            The Ottoman Fund Limited


                      Significant land purchase in Bodrum
                                        

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 acquisition of development land in the Bodrum peninsula on the Aegean coast
of Turkey.


The Fund, which is quoted on AIM, is managed by Development Capital Management
(Jersey) Limited.

Highlights


   * Agreement has been reached to purchase 166,825 square metres of
     sea-front development land on the Bodrum peninsula, one of Turkey's most
     popular coastal destinations. Villas in Bodrum, and particularly in this
     area of the northern part of the peninsular, are particularly sought after
     by local wealthy buyers. The site is located approximately 50 kms from
     Bodrum international airport.

   * The total purchase price is approximately US$33.4 million,
     equivalent to US$200 per square metre of land and approximately US$650
     per square metre of buildable space. This is in line with current market
     prices as verified by an independent valuation.

   * On completion of the purchase the Fund intends to develop the
     land, in joint venture with a local developer, into a villa complex
     of around 250 units. Development costs are expected to be in the
     region of US$650 - US$750 per square metre of built-up area.

   * Construction expected to commence towards the end of 2006,
     with completion anticipated by the 2008 summer season. Sales are
     expected to commence in Autumn 2006.

   * Current "as-built" sale prices, based on comparable
     properties selling in the region, are estimated by the
     Manager at US$2,000-US$2,500 per square metre. If all of the
     units are sold at these prices over the next two years, the
     gross internal rate of return on the Fund's investment would
     be in the range of 45% to 70%.*

   * Images of the site may be viewed at www.ottomanfund.co.uk/kucukbuk.


The Chairman of the Fund, Sir Timothy Daunt said: "The purchase of land in Bodrum 
together with the Fund's development plans represents an important step in the
early life of the Fund. The Bodrum area is popular with both local and tourist 
buyers and therefore we would expect the development to sell well."


Further Details


The Ottoman Fund Limited (the "Fund") has (through a local subsidiary) signed an 
agreement to acquire 166,825 square metres of sea-front development land on the
Bodrum peninsula, one of the most popular coastal destinations in Turkey.


The site is only 50 kms from Bodrum's international airport and just 20 kms off 
the main Milas-Bodrum highway. Tourism infrastructure and transportation
around the area is well developed. The region benefits from a Mediterranean 
climate with the summer season lasting 8 months. Local and foreign tourists to the 
area numbered 2.5 million in 2005. Villas in this area of the northern part of the 
peninsular are particularly sought after by local wealthy buyers looking for a holiday
home.


The Fund will pay a price of approximately US$33.4 million equivalent to US$200 
per square metre of land and approximately US$650 per square metre of buildable
space. This is in line with current market prices as verified by an independent 
valuation. Local taxes, commissions and agent fees total an additional US$1.7
million.


The Fund will work in joint venture with a local developer (to be selected) to 
produce a development plan for the site and to select and appoint architects, a
construction company and other professionals for the project. The Fund intends to 
develop the land into a villa complex of around 250 units. Work is expected to
commence towards the end of 2006, with completion anticipated by the 2008 summer 
season. Development costs are expected to be in the region of US$650 - US$750 per
square metre of built up area.


Sales are expected to commence in Autumn 2006. Current "as-built" sale prices, 
based on comparable properties selling in the region, are estimated by the Manager at
US$2,000-US$2,500 per square metre. If all of the units are sold at these prices 
over the next two years, the gross internal rate of return on the Fund's investment
would be in the range of 45% to 70%.*


List of contacts

Development Capital Management 020 7399 4270
Roger Hornett
Tom Pridmore

Buchanan Communications 020 7466 5000
Charles Ryland
Isabel Podda

Numis Securities Ltd 020 7776 1500
Andrew Dawber
Iain McDonald


* This internal rate of return (IRR) calculation is based on the assumption that
the units are sold over a period of 2 years at the estimated open market value
and on the assumed build costs provided by the Manager. The calculation is
before tax but net of sales commission and other marketing costs. The Directors
of the Fund consider the IRR to be calculated after due and careful inquiry.
This statement should not be taken as an assurance that the apartments will in
fact be sold for the estimated valuation within 2 years.





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

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