NRE North Real

RNS Number:8766K
North Real Estate Opportunities Fd
02 January 2008



                  NORTH REAL ESTATE OPPORTUNITIES FUND LIMITED

                                 Trading Update

North Real Estate Opportunities Fund Ltd (the "Company" or "NRE") is pleased to
provide its shareholder's with a trading update as at 31 December 2007
demonstrating the excellent progress being made across all three of the
Company's principal developments.

Suceava Shopping City

The Company is pleased to announce that its joint venture development of the
50,000 sqm Suceava Shopping City in Suceava, Romania, is progressing on-time and
on budget for its planned April 2008 opening. In December, two key units were
handed over as planned to anchor tenants Carrefour Hypermarket and Media Galaxy
electronic super store for their final fit out. The other anchor tenants are
Baumaxx DIY and Mobexpert and these units are planned to be handed over in
January and February. The shopping mall is now some 70% leased, substantially
ahead of schedule.

Based upon leases signed to date, the scheme, when fully let, is estimated to
generate a net rental yield (un-leveraged) to the Company of approximately 8.5%.

European Retail Park Sibiu:

Since acquiring the 47,000 sqm Real Hypermarket (Metro Group) and Baumaxx
anchored retail park, the Company has completed an approximately 4,000 sqm
extension leased to leading international retailers, Hervis, Deichman, Takko and
New Yorker. The new retail units opened in December 2007 with initial reports of
very strong trading by the retailers.

NRE has also commenced the development process on the approximately 30,000 sqm
extension and reconfiguration of the property, which will include a 12,500 sqm
Carrefour Hypermarket, a 7,000 sqm Mobexpert and a 3,000 sqm leisure area
including a multiplex cinema and multi-lane bowling alley. In addition the
current fashion mall will be extended to allow for further internationally
recognised high-street fashion brands to enter the centre. Completion of these
developments and the re-launch of the shopping centre is planned for December
2008 and the overall scheme is anticipated to generate some Euro10m of annual
income with a running rental yield in excess of 8.0%.

Riviera Shopping City, Odessa Ukraine:

The Company announced its first transaction in Ukraine in July 2007, with the
acquisition of an 185,000 sqm site and the launch of the 100,000 sqm development
of the Riviera Shopping City, Odessa's first internationally anchor-tenanted
destination shopping centre.

The Company recently received planning consent and Phase 1 is planned to
commence construction in 1st quarter 2008. The Company signed a long term year
lease with Real Hypermarket for a 12,500 sqm store and has agreed lease terms
with a leading international DIY operator and Electronics superstore. In total
these anchor tenants will occupy over 30,000 sqm of the leasable area.

Phase 1 of the project is budgeted to generate a yield on cost in excess of 12%
and should be strongly accretive to the Company's returns.

Further Activity

The Company is in the execution phase of another retail shopping centre
development site acquisition in a leading regional Ukrainian city. The Company
has secured the site with a deposit and is currently completing its final due
diligence and anticipates completion of the transaction in first quarter 2008.

NRE has agreed lease terms with anchor tenants including international
hypermarket, DIY and electronics retailers. It is anticipated that construction
will commence in 3rd quarter 2008.

In December 2007, the Company agreed terms with Proton Bank of Greece, for a
three year, Euro25m facility to provide additional investment capital. Assuming
full drawdown of the corporate facility which is anticipated by January 15, 2008
and including all asset-level loans, the Company would have an overall gearing
of some 55% (based upon March 31 2007 NAV).

The Company recently announced that the first Annual General Meeting of the
Company will be held on 11 January 2008. Earlier this year, the Company changed
its year end to 30 September and expects to release the preliminary announcement
of the results for the period to 30 September 2007, including the NAV per share
by 31 January 2008.

Commenting on the trading statement, Robert Provine, Fund Manager said "We are
very pleased with the progress the Company has made during this period. Each
development has been carefully managed and where possible re-planning has
enabled us to expand the scope of the project. As a result we have in place
three substantial projects which are being developed on schedule and are
attracting significant tenant interest. We look forward to updating the market
in more detail in the coming months."

                                     -Ends-

North Real Estate Opportunities Fund Ltd

+44 207 535 4000

Robert Provine

Oriel Securities

+44 207 710 7600

Tom Durie

Cardew

+44 207 930 0777

Tim Roberston

Shan Shan Willenbrock


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

END
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