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1 Dec 2008 08:44
Dragon - Ukrainian Properties & Development plc
(the 'Company' or "DUPD"))
Update
DUPD announces healthy cash balance with USD 83 million being uncommitted
In light of the changing market environment, the Company has decided to reduce the amounts currently committed to its existing three projects. Accounting for the revised commitments, the total funds of DUPD available for new investments currently stand at $83 million, prior to the Company's operational expenses.
Details of the revised commitments are as follows:
Vita Poshtova project (development of a cottage community, up to 170 housing units in close proximity to Kyiv);
Initial commitment for the project development: $13,000,000;
Revised commitment for the project development: $4,750,000
The revised investment strategy envisions equity financing for the construction of 8 show-case homes (down from 20), completion of the concept design, as well as the requirement for minimal utility connections and land title optimization procedures.
Depending on the success of the sales campaign (planned to commence in spring 2009), the Company shall consider whether to further finance the project via proceeds from pre-sales or commit additional equity.
Obolon project (development of a mixed-use complex, approx. 48,000 sqm in Kyiv):
Initial commitment for the project development: $9,500,000;
Revised commitment for the project development: $4,300,000.
The revised investment strategy envisions equity financing for the rezoning of the land, obtaining of the approved project design documentation and construction permit, expected in spring 2009.
The downsized commitment assumes postponement of all investment required for the commencement of construction works, including demolition of the existing building and bringing the utilities to the site. In order to complete the project, it would require an additional $11million of debt and equity financing, followed by proceeds from pre-sales.
Land Banking (targeting acquisition of 2 land plots with total area up to 675 hectares)
Initial commitment: $140,750,000;
Revised commitment: $130,750,000.
The revised commitment assumes downsizing the investment on one of the land plots by $10 million, which will result in the land holding being 50-60 hectares lower in size. However, this decrease in size should not affect the integrity of the land plot or its accessibility and therefore will have no negative impact on its marketability.
The Company is also currently reviewing costs necessary for operational expenses (land taxes, administrative expenses, etc) and future project development (high and best use analysis, architectural concept, etc).
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 44 490 7120
KBC Peel Hunt Ltd (Nominated Adviser and Broker)
Capel Irwin: + 44 20 7418 8900
Daniel Harris
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