CONT The Company is also negotiating with Volksbank and we remain optimistic that all our expired loans will be prolonged. Five of the seven expired loans with Volksbank are not cross collateralised, while two of them - the Hold project with a guaranteed loan balance of €3.7 million and the guaranteed accumulated interest of €0.2 million on the High-Tech Park development project - belong to a ring-fenced group of properties, which has in total negative cash-flow. The Group maintains the projects with the expired loans in good faith but the associated interest and penalty charges were not paid to Volksbank following their expiries as we believe that Volksbank has a commitment to maintain these loan facilities and it would be not in the Company's interest to use liquidity for this purpose. The Group has improved its covenant situation with a single loan covenant in technical breach, while there were two loans in technical breach as at 30 June 2012 and three loans as at 31 December 2011. The lenders had not issued a default notice for any of these loans historically. Regarding developments: the Airport City logistics facility is due to be handed over to the tenant in December 2012. As announced on 3 July 2012, the Company has signed a 10 year tenancy contract with BENTELER, a manufacturing company. The Company has secured a new 6 year banking facility for construction financing of EUR 2.5 million, provided by Unicredit Bank Hungary Zrt. The general contractor is KÉSZ Zrt following a tender process. Financing agreements are being sought for the Karolkowa development with the construction contracts in place. The construction is temporarily suspended until financing is secured."
15 Nov '12
For the period from 1 July 2012 to 15 November 2012 ABLON Group Limited ("ABLON" or "the Company" and, together with its subsidiaries, the "Group"), a leading real estate owner and developer in Central Europe, today announces its Interim Management Statement for the period from 1 July 2012 to 15 November 2012. Alex Borrelli, Chairman of ABLON, commented: "The Company remains focused on generating positive cash flow, while development activities are limited to availability of financing and remain subject to our expectation of market demand. The depressed market conditions influenced income generation moderately, with annualised gross rental income edging lower from €17.8 million as at the end of last year, to €16.5 million currently. This 7% drop is a consequence of lower rent levels, while total occupancy levels did not change materially (73% at 31 December 2011, 71% now). Easing interest rates resulted in improved cash flow for a number of projects, the benchmark 3-M-Euribor rate fell from 1.4% as at the end of the last year to 0.2% as of today. The Company is currently negotiating a mid-term loan prolongation with Deutsche Pfandbriefbank that aims to build upon a respected relationship and also to turn our associated three projects from cash flow negative to being slightly cash flow positive to the Group.
Ablon Group (ABL), a property developer in Central Europe, reported a 7% drop in gross rental income to 16.5 million euros (13.3 million pounds) as a consequence of lower rent levels, while occupancy levels remained virtually unchanged. As the depressed market conditions continue, the company is currently negotiating a mid-term loan prolongation with Deutche Pfandbriefbank in an attempt to turn its three core projects from being cash flow negative to cash flow positive. The shares lost 0.88p to 15.13p.
1 Jul '11
Alex Borrelli, Chairman, commented: "Ablon has developed significantly since its admission to AIM in 2007 having now assembled a property portfolio of 15 completed projects and 24 development phases on partially developed sites situated at 34 locations across Central Europe. The Directors consider that a move to the Official List will raise the profile and public awareness of the Company so that it will be better placed to achieve improved visibility and liquidity in its issued share capital. We also believe that this move will provide access to a wider audience of investors, as well as give the Company greater flexibility with regard to listing on other EU exchanges and, therefore, potential access to additional pools of capital in the future."
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