LONDON (Alliance News) - Kimberly Enterprises NV, the AIM-listed Central and Eastern European property developer, on Monday said it has receive a notice requesting the termination of the lease agreement it has for the Marina Dorcol project from the mayor of Belgrade.
In a statement, Kimberly said that based on first-quarter results the effect of termination could increase the company's equity by EUR18.4 million.
According to the company's estimates, termination could decrease non-current assets by EUR25.6 million, current liabilities by EUR36.2 million and non-current liabilities by EUR7.8 million.
"In the event of the termination, the final result would be the restitution of the amounts paid by the company in respect of Marina Dorcol based on the agreements with the municipality, decreased by the amount of compensation to the municipality for usage of such land for the period of duration of the lease and for compensation for damages which have occurred, if any," Kimberly said in a statement.
Kimberly estimates that it will have a positive net cash flow from the restitution.
"The company is taking legal advice as to its options, and a further announcement will be made in due course," Kimberly said.
Shares in Kimberly were up 14% at 0.600 pence Monday following the announcement.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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