Update on the office construction project in Warsaw
The Company announces that it has withdrawn from the construction financing contract in relation to the Karolkowa Business Park in Warsaw that was signed on 6 July 2011 with Investkredit Bank AG, a member of the Volksbank Group which is a 24.31% shareholder of the Company ("Contract").
The financing was principally in the form of a EUR 24.09 million senior loan.
The Company withdrew from the Contract due to Investkredit Bank AG being in breach of its contractual obligations.
The Company is currently seeking alternative loan financing to enable the continuation of the construction of the Karolkowa Business Park and will update shareholders as and when appropriate.
Uri Heller, CEO, stated; "We remain optimistic about the viability of the Karolkowa project and are confident of securing alternative financing."
For further information, please contact:
Ablon Group Limited
Kristóf Skwarek Tel. +36 1 225 6600
Religare Capital Markets (Financial Adviser)
Emily Staples Tel. +44 (0)20 7444 0800
Newgate Threadneedle (Financial PR)
Graham Herring Tel. +44 (0) 20 7653 9858
Terry Garrett Tel. +44 (0) 20 7653 9845
NOTES TO EDITORS
About Ablon Group Limited
Founded in 1993 in Budapest (Hungary), ABLON and its subsidiaries (together the "ABLON Group") has properties at 34 locations, of which there are 15 completed projects, one project in the construction phase and 23 development projects in Budapest, Prague, Bucharest, Warsaw and Gdansk. Its portfolio comprises a diversified mix of office, residential, retail, logistics and hotel developments valued at €574 million by external independent appraisers (GVA and King Sturge), as at 31 December 2010. The ABLON Group had, as at 31 December 2010, 201,150 square metres of existing and income generating office, residential, hotel, retail and logistics assets (at 15 locations) in Budapest and Prague, with a significant development land bank comprising a further 1,234,800 square metres (at 24 locations) in Budapest, Prague, Bucharest, Warsaw and Gdansk. ABLON's shares are traded on the Main Market of the London Stock Exchange under the ticker 'ABL'.
This information is provided by RNS
The company news service from the London Stock Exchange
Datafeed and UK data supplied by NETbuilder and Interactive Data.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk!
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.