Citius Resources Regulatory News (CRES)

26 Apr 2006 11:03

Crescent Hydropolis Resorts PLC26 April 2006 CRESCENT HYDROPOLIS RESORTS PLC NEW YORK ISLE OF MAN LONDON MUNICH MONACO DUBAI QINGDAO ANNOUNCEMENT Hydropolis Qingdao Project The Directors of Crescent Hydropolis Resorts PLC (the Company) (AIM: CRES)announce today that agreement has been reached with the People's Government ofLaoshan District, Qingdao, China (Laoshan) to allocate land and sea rightsrequired for building the world's first underwater hotel and resort, Hydropolis(Hydropolis Qingdao). Agreement has also been reached with Laoshan on HydropolisQingdao's technical specifications and Laoshan has confirmed within theirestablished authorities that all necessary regulatory and licensing approvalswill be put in place. The proposed investment in Hydropolis Qingdao is expected to be approximately€400 million, to be raised from a mix of permanent construction loans andprivate equity from investors. Construction timetables envisage the HydroTowercomponent of the Hydropolis Qingdao being completed prior to the start of the2008 Beijing Summer Olympic Games. The sea-based Hydropalace will follow tocompletion and operation in 2009. On 26 April 2006, Crescent Hydropolis Holdings Qingdao Limited (CHHQ), a whollyowned subsidiary of the Company created for the purpose of developing HydropolisQingdao, entered into a Binding Cooperation Agreement (the Agreement) withLaoshan. Under terms of the Agreement, the HydroTower Landstation will belocated on 33,000 sq meters of land (the Land) that comprise the previouslocation of the Ocean Entertainment Park in Qingdao. The purchase price of theLand leasehold shall be determined through an open auction tender process thatwill, when paid, give the Company through its local subsidiaries the right touse the Land for 40 years, with the right of first refusal to extend the Landleasehold. The Hydropalace underwater hotel component will be situated southwest of theisland of Chidao and southeast of Xiao Maidao in the sea with a surface area ofapproximately 20,000 sq meters. Sea rights will be offered in the form of alease at the site where the Hydropalace is to be situated. The Company's localsubsidiaries shall have the right to occupy and use the location for 25 years,with the right of first refusal to extend the sea lease agreement. The leasingfee will be paid in a lump sum amount equal to 30% of the per sq meter cost ofthe Land times the total surface area of the sea used. Hydropolis Qingdao is expected to offer luxury hotel accommodations and spafacilities in underwater living environments, including wellness centers,ballroom facilities, rotating restaurants and other first-of-their-kindfacilities. The HydroTower Landstation, which serves as a welcoming center forhotel guests will be connected to the Hydropalace by sea-faring HydroShuttles. The Agreement sets forth a detailed construction description of the HydroTowerLandstation and its interior spaces as well as its ancillary buildings. Itfurther sets forth the prototype design images and floor plans for theHydropalace, including layouts of interior spaces. An integrated financial modelthat shows profitability and operating assumptions for the project are submittedin exhibit form as part of the Agreement. In the Agreement, Laoshan confirms, under authorities vested in it, that noother licensing, permissions or other approvals are needed for the project tocommence with construction. The Agreement is conditional upon CHHQ obtainingfinancing for the Hydropolis Qingdao project on terms to the satisfaction ofCHHQ and the Company and , is subject, in the case of the obligations andliabilities of CHHQ, to execution of relevant agreements to effect its terms indetail. "Hydropolis Qingdao is the world's first true underwater hotel and resortfacility - a symbol for the peoples of Laoshan District, the city of Qingdao andall throughout China to take pride in," said Joachim Hauser, executive chairmanand founder of the Company. "We are delighted and excited to announce the launch of Hydropolis Qingdaotoday. It is a magnificent vision for the future of mankind, and we thankJoachim Hauser, Mansoor Ijaz, Dr Jens-Christian Posselt and the entireHydropolis team for bringing this project to life in Laoshan District," saidWang Wei Da, Director of People's Government of Laoshan District Qingdao. The Company anticipates that Siemens AG will provide engineering and technicalsystems, including electrical, hydro, security and water systems for theHydropalace and HydroTower Landstation, and further that SIBC IndustrialBuilding Consultants will manage the project's various building structures tocompletion. "We firmly believe in the Hydropolis concept and are pleased to havebeen a part of this historic moment in the history of the world's revolutionarybuilding concepts," said Gerhard Tegtmeyer, Managing Director and CEO of SIBCIndustrial Building Consultants, while in Qingdao for the signing ceremonies. For further information contact:- Mansoor Ijaz Tel:- 07717 333 137 26 April 2006 Chief Executive This information is provided by RNS The company news service from the London Stock Exchange