EUROCASTLE INVESTMENT LIMITED
                                      FOR IMMEDIATE RELEASE
Contact:
International Administration Group (Guernsey) Limited
Company Administrator
Attn:Â Mark Woodall
Tel:Â +44 1481 723450
Eurocastle Business Update
Guernsey. 22 January 2014 - Eurocastle Investment Limited (Euronext Amsterdam:
ECT) ("Eurocastle" or the "Company") announces developments in new investments
and legacy businesses.
Debt Investment & Real Estate Sales
·                   The Company has sold the remaining securities in the CDO IV
portfolio for an average price of 96.4% of face value, equivalent to a yield of
approximately 2.60%. After repaying the CDO IV facility in full, the sale has
realised €22.5 million of NAV, resulting in a gain of €1.2 million since the
third quarter. The remaining pool now consists of two junior loan investments
with a total carrying value as at September 30, 2013 of €7.7 million.
·                   Further cash flow has been generated within Eurocastle's
Wave real estate portfolio from the sale of four assets in December for total
sales proceeds of €30.8 million. The sales have generated €3.5 million of
distributable cash with the majority of the remaining proceeds used to partially
repay the Wave facility in January; the balance outstanding has been reduced to
€106.8 million (€131.5 million as at September 30, 2013). Separately, in light
of the maturity of the Wave facility in April 2014, the Company is pursuing in
parallel the possibility of a sale of the portfolio in whole as well as a
potential refinancing.
New Investment Returns
·       Using the additional capital realised from the legacy business together
with existing corporate cash, the Company continues to pursue its investment
targets in the Italian real estate sector. Earlier this month, the Group
announced it was launching a joint tender offer with the GWM Group to each
acquire up to 20% of the units of the Italian real estate fund UniCredito
Immobiliare Uno. The tender price represents a premium of approximately 13.1 per
cent. to the weighted average market price of the units registered in the 3
months prior to the announcement of the acquisition and a discount of
approximately 38 per cent. to the most recently published NAV. If fully
subscribed, the offer would result in an investment of approximately €60
million. The offer is currently under review by Commissione Nazionale per le
Società e la Borsa (Consob), the Italian securities regulator, and if approved,
the offering period is expected to begin sometime around the beginning of
February. It is anticipated that final results will be announced at the end of
the tender period and the Company will release further details of the investment
thereafter.
·                   Whilst the Company continues to find the opportunity to
invest in Italian NPLs compelling, it is disappointed that these investments
have not materialised as quickly as anticipated. The Company believes this delay
is due in part to the on-going ECB asset review process which is expected to be
completed in the second half of 2014. Nevertheless Eurocastle remains optimistic
that these opportunities will provide an attractive and continuous source of
investments to Eurocastle for a number of years. The Company remains focused on
its near term pipeline where negotiations continue on a number of NPL pools.
·                   In pursuing investments in direct Italian real estate, the
Company has recently signed an agreement to strategically partner with a local
investor and asset manager. The local partner will assist Eurocastle to source,
acquire and develop vacant or inefficient real estate in prime locations in Rome
and Milan for conversion into luxury residential units. To date, a total
pipeline of up to €70 million of investment has been identified.
Real Estate Financing
·       In advance of the Drive senior loan maturity on 20 January 2014, the
Group has signed a binding term sheet with the lending syndicate of the Drive
junior facility to refinance the senior loan for a term of two years. The Group
has secured a short term extension of the current senior loan to 20 April 2014
pending the documentation of the two year extension of the facility. Eurocastle
expects to agree short term extensions of the junior facility until the senior
loan refinancing is secured.
·                   On 15 January 2014, the Bridge facility reached its
maturity. The outstanding loan balance of €372.1 million had not been repaid and
the Company has been unable to negotiate an extension. As such, the Bridge
facility has been moved into special servicing. Eurocastle does not project any
further cash flow from this portfolio. As at 30 September 2013, the Company
reported an NAV of €27.7 million of which €2.6 million of cash has since been
distributed to the Company.
About Eurocastle
Eurocastle Investment Limited is a closed-ended investment company that owns
Italian loans and real estate related assets, German commercial real estate and
European real estate securities and loans. The Company is Euro denominated and
is listed on Euronext Amsterdam under the symbol "ECT". Eurocastle is managed by
an affiliate of Fortress Investment Group LLC, a leading global investment
manager. For more information regarding Eurocastle Investment Limited and to be
added to our email distribution list, please visit www.eurocastleinv.com.
The tender offer for units of the Italian real estate fund UniCredito
Immobiliare Uno has not been and will not be promoted in the United States of
America and has not been and will not be launched in Australia, Canada, Japan or
any other countries other than Italy. The information contained in this release
does not constitute and shall not be construed as an offer of securities
addressed to persons residing in the United States of America, Canada, Japan,
Australia or the Other Countries.
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Eurocastle Investment Limited via GlobeNewswire
[HUG#1756222]