CapMan - Company Announcement

CapMan establishes EUR 835 million hotel real estate fund and buys 39-hotel portfolio

CapMan Plc Stock Exchange Release 18 January 2008 at 11.00 a.m.


CapMan Plc has established a new private equity real estate fund,
CapMan Hotels RE Ky, investing in hotel real estate. The fund has
today signed an agreement on the acquisition of a EUR 805 million
hotel portfolio of 39 properties from Northern European Properties
Ltd (NEPR). The establishment of the new fund raises the total
capital managed by CapMan by some 27 per cent to approx. EUR 3.8
billion. The establishment of the fund is estimated to have a
slightly positive impact on CapMan's result for 2008.

Fund structure

CapMan Hotels RE Ky fund reached EUR 835 million at first closing and
the maximum fund size is EUR 1.1 billion. 17 Finnish institutions
have committed EUR 292 million of equity into the fund to date, with
the balance comprising senior debt. The fund is open to new investors
for twelve months and the maximum amount of equity capital will be
EUR 400 million. CapMan Hotels RE Oy, which is 80% owned by CapMan
Plc and 20% owned by Corintium Oy, acts as CapMan Hotels RE Ky's
management company. The management company's own commitment into the
fund is EUR 5 million.

The fund has acquired a portfolio of 39 hotels

CapMan Hotels RE Ky's investment focus is on hotel real estate
especially in Finland and Sweden. The fund invests both in existing
hotel properties and in new hotel development projects. In the
transaction agreement signed today, the fund has acquired four
holding companies from NEPR. The holding companies own 39 hotel
properties, which had a total value of EUR 805 million in the
transaction. The transaction is subject to approval by competition
authorities and pending compliance of the assets' technical standard
with preliminary studies. The transaction is expected to be closed by
29 February 2008. Of the acquired hotels, 38 are located in Finland
and one in Sweden. The hotel chains operating in the hotel properties
are, among others, Rantasipi, Cumulus, Sokos Hotels, Scandic and
Holiday Club and the hotels are principally leased to hotel operators
Restel, SOK and Scandic. The gross lettable area of the hotels totals
408,994 m2 with 6,477 hotel rooms in all. The largest hotels in the
portfolio are the Crowne Plaza Hotel in Helsinki and Holiday Club Åre
in Sweden. The cash flow weighed average maturity of the hotels'
lease agreements exceeds 14 years and the hotel premises are fully
let.

The hotel industry has developed well in Finland in the last few
years and growth is expected to continue also in the future. The
acquired portfolio comprises assets in good condition with central
city locations or leisure destinations. A team of 10 people
responsible for management and development of the hotel portfolio
will transfer to work for CapMan with the transaction."The acquired portfolio offers a good diversification and has
substantial earnings potential through rental income, development
projects and property value appreciation. CapMan Hotels RE Ky fund
will be a leading player in Nordic hotel real estate investment
markets. Our objective is to complement the portfolio with new
investments," states Markku Hietala, Head of CapMan Real Estate.

Private equity real estate funds are an important business line for
CapMan

CapMan Hotels RE is CapMan's third private equity real estate fund.
CapMan's first real estate fund, CapMan Real Estate I, was
established in 2005 and the second fund, CapMan RE II, in 2006.
Commitments in the three funds total EUR 1.9 billion overall."The establishment of the hotel real estate fund is an indication of
the wide growth opportunities in Nordic real estate investment.
Subsequent to the transaction, the CapMan Real Estate team gains
leading positions in real estate investment and development of
different commercial, logistics and hotel properties in Finland,"
states Heikki Westerlund, CEO of CapMan Plc.

NEPR is a real estate investment firm quoted on the AIM market of the
London Stock Exchange and on the Euronext Amsterdam Stock Exchange.
The company has sold its Nordic portfolio of hotel properties to
focus its real estate investment business on Russia and the Baltic
countries.

Fund management fees and carried interest

The management fee for CapMan Hotels RE Ky is based on acquisition
cost of the current portfolio. The management fee percentage in
private equity real estate funds is typically lower than in funds
making direct investments in portfolio companies. The fund will begin
to generate carried when investors have regained their investment and
a preferred annual return of 8%, after which the division of cash
flows will be 80% for investors and 20% for the management company.
After the annual return to investors has exceeded 10%, the division
of the funds cash flows will be 70% for investors and 30% for the
management company.

CapMan Plc's share of the possible carried interest from CapMan
Hotels RE is 60% and the combined share of the fund's investment team
and Corintium Oy, the management company's other owner, is 40%. The
establishment of the fund is estimated to have a slightly positive
impact on CapMan Plc's result for 2008.

Press Conference:
A press conference on the establishment of the CapMan Hotels RE fund
will be held in Finnish for the media and analysts today, 18 January
2008 at 12.00 p.m. in CapMan's premises at the address
Korkeavuorenkatu 32, Helsinki. Light lunch will be served.
Presentation material from the press conference will be available in
Finnish and English at the same time on CapMan's Internet pages at
www.capman.com.

For further information, please contact:
Markku Hietala, Head of CapMan Real Estate, Senior Partner, tel. +358
500 405 879
Heikki Westerlund, CEO, Senior Partner, CapMan Plc, tel. +358 50 559
6580
Thomas Lindeborg, Managing Director, L&R Nordic Properties AB, tel. +
46 70 624 8503

Appendix: The hotels acquired to CapMan Hotels RE Ky's portfolio


CAPMAN PLC


Mari Reponen
Communications Director
Investor Services


DISTRIBUTION
Helsinki Exchanges
Principal media
www.capman.com


CapMan  www.capman.com
CapMan is one of the leading alternative asset managers in the Nordic
countries and manages Nordic funds with approximately EUR 3 billion
in total capital. CapMan has four investment areas (CapMan Buyout,
CapMan Technology, CapMan Life Science and CapMan Real Estate), and
each of them has a dedicated team and funds. Altogether CapMan
employs around 100 people in Helsinki, Stockholm, Copenhagen and
Oslo. CapMan was established in 1989 and its B shares are listed on
the Helsinki Stock Exchange since 2001.



Northern European Properties Limited
Northern European Properties Limited is a Jersey incorporated company
which invests in real estate opportunities in the Nordic and Baltic
Regions and Baltic Russia. The company has been listed on AIM, a
market of the London Stock Exchange, since 15 November 2006 and on
Euronext Amsterdam since 18 December, 2007. The company has an
experienced board of six non-executive Directors, chaired by Jens
Engwall and has appointed LR Real Estate Asset Management (LR REAM)
to manage its assets and to pursue investment opportunities.


Appendix: The hotels acquired to CapMan Hotels RE Ky's portfolio


   Hotel                          City        sqm    Rooms
 1 Crowne Plaza Helsinki          Helsinki    32,600   349
 2 Cumulus Airport                Vantaa      12,285   278
 3 Cumulus Hämeenlinna            Hämeenlinna  7,214   100
 4 Cumulus Jyväskylä              Jyväskylä    9,540   203
 5 Cumulus Kemi                   Kemi         5,495   184
 6 Cumulus Koskikatu              Tampere      9,800   230
 7 Cumulus Kuopio                 Kuopio       4,147   141
 8 Cumulus Oulu                   Oulu        12,250   207
 9 Cumulus Pinja                  Tampere      3,070    60
10 Cumulus Rauma                  Rauma        4,000   103
11 Cumulus Rovaniemi              Rovaniemi    5,142    64
12 Cumulus Seinäjoki              Seinäjoki    8,935    71
13 Holiday Club Katinkulta        Vuokatti     4,723   116
14 Holiday Club Kuusamo           Kuusamo     12,100   125
15 Holiday Club Oulun Eden        Oulu        14,762   169
16 Holiday Club Saariselkä        Saariselkä  10,001   139
17 Holiday Club Tampereen Kylpylä Tampere      8,519    92
18 Holiday Club Åre               Åre, Ruotsi 22,459   205
19 Holiday Inn Garden Court       Vantaa       6,799   280
20 Holiday Inn Oulu               Oulu         5,587   154
21 Holiday Inn Tampere            Tampere      6,470   135
22 Holiday Inn Turku              Turku        7,200   199
23 Palace Linna                   Helsinki     6,869    48
24 Radisson SAS Vaasa             Vaasa       22,349   285
25 Ramada Airport                 Vantaa      12,269   292
26 Rantasipi Aulanko              Hämeenlinna 15,584   246
27 Rantasipi Eden                 Nokia       20,610   204
28 Rantasipi Joutsenlampi         Joutsa       6,534    42
29 Rantasipi Laajavuori           Jyväskylä   19,333   175
30 Rantasipi Pohjanhovi           Rovaniemi   15,000   215
31 Rantasipi Rukahovi             Rukatunturi 14,000   180
32 Rantasipi Sveitsi              Hyvinkää    16,970   194
33 Rantasipi Tropiclandia         Vaasa       10,639   184
34 Scandic Plaza                  Turku        5,314   117
35 Scandic Rovaniemi              Rovaniemi    5,692   167
36 Sokos Hotel Albert             Helsinki     4,561    95
37 Sokos Hotel Pasila             Helsinki     7,889   178
38 Sokos Hotel Seurahuone         Kotka        7,700   128
39 Sokos Hotel Vaakuna            Hämeenlinna  4,583   123