4 Mar 2009 08:48
4 March 2009
Dragon - Ukrainian Properties & Development Plc (the "Company" or "DUPD")
Investment in Completed Development
Dragon - Ukrainian Properties & Development Plc, one of the largest AIM-listed real estate investment companies focused on investments in Ukraine, managed by Dragon Capital Partners Limited ("DCP"), is delighted to announce the closing of a deal under which it is securing rights over 38 residences in a newly completed gated community in the outskirts of Kyiv for a consideration of USD 12,432,700.
The community provides its residents with the benefit of living in a countryside setting, while enjoying close proximity to Kyiv. Located on the forest edge and a few hundred meters from a lake, the community's distance from the city border is only 3 km and it is only 13km from the centre of Kyiv. With the scarcity of debt financing in Ukraine, the community represents one of very few completed residential developments in Kyiv and the closest to the city centre.
The rights have been secured through an agency agreement (the "Agreement") with Tomas Fiala. The terms of the Agreement mean that Tomas receives no payment or any other benefit from this transaction.
The seller's financial position has allowed DUPD to execute the transaction at an attractive valuation. This investment falls broadly within the investment strategy of the Company in the current market to acquire completed residential and commercial real estate assets from distressed property holders at below-market prices.
Pursuant to AIM Rule 13, the independent directors consider, having consulted with the Company's nominated adviser, that the terms of the Agreement are fair and reasonable as far as the Company's shareholders are concerned.
Aloysius Van der Heijden, Chairman of DUPD said: "With a strong cash balance sheet and no leverage, DUPD holds a unique opportunity to secure attractive completed residential and commercial properties in Ukraine at distressed valuations. Having closed this acquisition, the Company remains dedicated to pursue the opportunities of acquiring high-yielding commercial real estate properties at an average unlevered yield of 20-25%.
Enquiries:
For further information, please contact:
Dragon-Ukrainian Properties & Development Plc (www.dragon-upd.com)
Tomas Fiala
+380 44 490 7120
Dragon Capital Partners Limited
Chris Kamtsios: + 380 44 492 7977
KBC Peel Hunt Ltd (Nominated Adviser and Broker)
Capel Irwin: + 44 20 7418 8900
Daniel Harris