Disposal

RNS Number:5546I
Northern European Properties Ltd
27 November 2007

Sale of Swedish Portfolio.



Northern European Properties Limited ("NEPR" or the "Company"), which invests in
real estate opportunities in the Nordic and Baltic regions and Russia, is
pleased to announce today that it has reached an in principle agreement to sell
a portfolio of 14 properties (20 legal entities) in Sweden, through the sales of
shares, to Kungsleden AB.  The portfolio consists of industrial, logistics and
office properties whose principal tenants are ABB Fastighet AB and Frigoscandia.
The transaction is expected to complete within two weeks. In addition, NEPR has
sold a property in Sweden to Dios & Kuylenstierna AB in a separate transaction.
The net sales proceeds from the two transactions amount to approximately Euro 363
million. In the first transaction Catella acted as the seller's advisor.



The net sales proceeds are in line with the latest reported valuation dated 30
June 2007 (including portfolio premium). The gross rental income for the sold
properties was approximately Euro 29.4 million.



The proceeds will be used to partially fund, together with existing resources,
the completion of four previously announced Russian acquisitions consisting of
two office properties, a hotel property and a retail DIY store in St Petersburg.
In the light of current debt market conditions, NEPR will initially inject
significantly more equity into these acquisitions than previously anticipated,
which it will strive to refinance when market conditions have improved.



NEPR will continue with its strategy to optimise the value of its existing
Nordic portfolio.  Where it believes that attractive values can be achieved,
NEPR will consider further sales within the Nordic portfolio which it expects
will verify NEPR's reported property valuations. In addition, they will improve
NEPR's cash position and thereby its financial flexibility. To the extent
additional sales are executed and/or NEPR is able to refinance its existing
portfolio, in particular its Russian assets, the Board will actively consider a
share buy-back in light of the current discount of the Company's share price to
its reported net asset value as well as other potential uses for the capital.



NEPR anticipates releasing a pre-close period portfolio update in December.



Enquiries:

Jens Engwall, Chairman            Tel: +46 70 690 65 50

Thomas Lindeborg, CEO             Tel: +44 20 7499 40 60

Per Lindblad, CFO                 Tel: +46 8 456 32 51






                                                                               Lettable area, sqm
Property name         Address              Municipality       Industrial/Logistics  Office     Other        Total

Grubbe 9:48           Kabelvagen 1 A       Umea                            705        112         82          899

Kylfacket 1,          Hallmastarevagen     Stockholm                                    
Kylrummet             4-8                                               19 189      2 518       3 355      25 062

Jordbromalm 6:14      Lagervagen 11, 15    Haninge                       8 787        296         490       9 573

Oxen 11               Vastra               Kumla                                                                 
                      Drottninggatan 40                                  1 791        258         402       2 451

Slakthuset 14         Lindovagen 70        Norrkoping                    2 106        110         589       2 805

Arendal 764:385       Sydatlanten 12       Goteborg                      8 352        863         890      10 105

Hyveln 4              Sliparevagen 3       Solvesborg                      586        127          49         762

Bjuv 23:3             Billesholmsvagen 6   Bjuv                         18 218        370         293      18 881

Rausgard 22           Landskronavagen 11,  Helsingborg                                                   
                      21                                                40 492      3 870      17 250      61 612

Kronoslatt 1:3        Vastanvagen          Staffanstorp                 18 186      1 095       1 444      20 725

Ludvika               Kajvagen 1           Ludvika                     129 113     41 077      19 809     189 999

Verko 3:4             Verko Industriomrade Karlskrona                   29 778      3 736       3 719      37 233

Bulten 1              Savelundsgatan 2     Alingsas                     14 927      3 454         -        18 381

Stenvreten 4:1        Garagevagen 1-3 etc  Enkoping                     44 461        888         910      46 259

Asea 3                Vastberga Alle 60    Stockholm                    46 138      8 578      12 930      67 646

Total                                                                  382 829     67 352      62 212     512 393
                                                                          





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