Citadel Holdings - Velizy, Santos Dumont

Date: 21 Jan 2000

The Board of Citadel is pleased to announce that it has completed the acquisition of a further 745 sq m of office space and 28 car parking spaces within the Santos Dumont office complex in Velizy, just south of Paris. The additional space is in Santos Dumont, 23, avenue Louis Breguet, 78140 Velizy and was acquired for a consideration of FFr 5,500,000 including costs.

This investment comprises the freehold ("copropriete") interest of a modem office building constructed in 1991, with underground parking, which is situated in Velizy, 10 km south of Paris, close to Orly airport. Previously, in June 1998, Citadel acquired an initial 2,720 sq m within the office complex.

The property is fully let. The net rental income is FFr 640,307 per annum. The purchase price including costs provides a yield of 11.6 percent. Based on the equity investment of FFr 1,387,500 and a completed loan facility of FFr 3,862,500 at an interest rate of 4.4 percent, the investment produces a return on equity of 33.9 percent.

Executive Chairman, Sten Moertstedt, said:

"I am pleased with this further acquisition in the Santos Dumont office complex. The acquisition adds presence for Citadel in the Velizy market at a very attractive investment return."

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