ARO.L Regulatory News (ARO)

29 February 2016

Arricano Real Estate plc

("Arricano" or the "Company")

Repayment Extensions

Arricano is one of the leading real estate developers and operators of shopping centres in Ukraine. Today, Arricano owns and operates five completed shopping centres comprising c.147,800 sqm of gross leasable area, and land for a further three sites currently under development.

Arricano (AIM: ARO) has agreed to amend the repayment terms of two existing agreements: one between Arricano and Bytenem Co Limited ("Bytenem") and the other between Arricano and Vunderbuilt S.A. ("Vunderbuilt").  The details of the deeds of amendment (the "Transactions") are set out below.

Amendment to loan agreement with Bytenem

In May 2014 the Company and Bytenem agreed the terms of a loan facility of US$13.05m and an additional US$3.00 million loan was provided by Bytenem to the Company in July 2014.  The existing loan facility of US$16.05m (the "Bytenem Loan") is unsecured, carries an interest rate of 12% per annum and had a maturity date of 14 March 2016, having been previously extended.

The Company has entered into a deed of amendment with Bytenem to further extend the maturity date of the Bytenem Loan to 30 June 2017.  No other terms or conditions of the Bytenem Loan have been changed.

Amendment to share exchange agreement with Vunderbuilt

In September 2013 the Group agreed to pay Vunderbuilt deferred consideration of US$20.0m related to the acquisition of shares in Wayfield Limited (the "Share Exchange Agreement"). This liability is unsecured, carries an interest rate of 9.75%, and its payment date was 30 April 2016, having been previously extended.

The Company has entered into a deed of amendment with Vunderbuilt to further extend the payment of the deferred consideration under the Share Exchange Agreement to 30 June 2017.  No other terms or conditions of the Share Exchange Agreement have been changed.

The Transactions enhance the Company's working capital resources over the period before the relevant liabilities become payable in June 2017.

Related Party Transactions

Bytenem and Vunderbuilt are ultimately controlled by Hillar Teder who is the Company's majority shareholder and, therefore, is a "Related Party" under the AIM Rules for Companies.  Consequently, the Transactions are considered to be Related Party Transactions under AIM Rule 13.  The independent directors of the Company (Rupert Cottrell, Philip Scales and Michael Zampelas) consider, having consulted with its nominated adviser, that the terms of the Transactions are fair and reasonable insofar as its shareholders are concerned.

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