19th August 2009
Fair value adjustment of interest rate swaps
Develica Deutschland Limited (Develica" or "the Company"), the AIM-listed German property investor, today announces that the unaudited fair value adjustment of its interest rate swaps as at 31 July 2009 showed a reduced liability of approximately €60.54m compared to a liability of €65.4m at 31 March 2009.
The Company emphasises that the value of the interest rate swaps has no cash impact on the business or on Develica's debt covenants. The swaps are held in a special purpose vehicle and the above liabilities would only crystallise on disposal.
Develica intends to continue reporting the current fair value adjustment of its interest rate swaps on a quarterly basis.