DUPD.L Regulatory News (DUPD)

5 Sep 2007 11:44

Dragon-Ukrainian Prop. & Dev. PLC05 September 2007 5 September 2007 Dragon - Ukrainian Properties & Development Plc (the "Company" or "DUPD") $9 million commitment in Pine Forest Riverside Estates Project. Dragon - Ukrainian Properties & Development Plc, one of the largest AIM listedreal estate investment companies focused on investments in Ukraine and managedby Dragon Capital Partners Limited ("DCP"), is delighted to announce that it haslegally committed to the development of Pine Forest Riverside Estates project(the "Project"). The Project assumes the development of a gated community of upto 100 cottages and town houses in the picturesque Kyiv Sea area with access toDesna and Dnepr Rivers, 15 km from city border of Kyiv. DUPD committed toacquire 6.33 hectares of land representing 50.26% of the combined land ownershipin the Project. Two local entrepreneurs, who have been involved in variousresidential developments in Kyiv over the last five years, including thedevelopment of a gated community in the same area, own the remainder of theland. DUPD has also agreed to establish a joint Ukrainian SPV with its partners,through which further development will be financed. The shareholding in such SPVwill be on a pro-rata basis to land ownership in the Project, therefore,allowing DUPD to retain a majority stake in the SPV. This Project is in linewith the investment strategy of DUPD, having its core focus on development andre-development opportunities in commercial and residential real estate in Kyivand Kyiv region. Highlights: • The Company has agreed to invest up to US $ 9,000,000 in the Projectallowing financing for land acquisition and initial stage of construction works; • The development will be performed jointly with the owners of anadjacent 6.25 hectare land plot; • Technical documentation for the electricity and water connection hasbeen received, gas connection has been approved and currently going throughengineering works. DUPD and its partners in this project expect to share thecost of infrastructure with neighboring residential development projects; • Attractive location combining unique natural landscape - the propertyfeatures a combination of mixed pine and birch forests with river views and islocated within a 40 minute drive of Kyiv city center.; • The Directors believe that the attractive infrastructure of theproject (sandy beach area, BBQ zones, playgrounds, tennis courts, basketballcourts and a convenience shop) will stimulate high demand for the property; and • The Directors expect completion of the first line of houses by mid2008. Aloysius Van der Heijden, Chairman of DUPD said: "DUPD is pleased to announceits first project in residential development - the most rapidly developingsector of Ukrainian real estate market. We are looking to bring to the market aquality product, possessing all characteristics and necessary infrastructure ofa western-style gated community. We are actively looking for similaropportunities in this sector in the future". . Christos Kamtsios, Managing Director of DCP said: "The location of the landplot, in conjunction with increasing demand for quality suburban housingsupported by adequate social infrastructure, justifies the development effort onthis Project and potential investment returns for the shareholders. Moreover,as the Project is already in the early stage of construction with the initialpermits being received, we believe that it can be realized within a shorttimeframe". --- ends --- For further information, please contact: Dragon Ukrainian Properties & Development PlcTomas Fiala +380 44 490 7120 Dragon Capital Partners LimitedChris Kamtsios: +380 44 490 7120 Zimmerman Adams InternationalRay Zimmerman/Jonathan Evans+44 20 7060 1760 Notes to Editors About Dragon- Ukrainian Properties & Development Plc DUPD is an Isle of Man incorporated company formed to invest in the developmentof new commercial properties and re-development of existing properties inUkraine which offer the proposect of attractive returns to its shareholders.Having raised US$ 208 million at US$2 per share, DUPD's ordinary shares wereadmitted to trading on the AIM market of the London Stock Exchange on 1 June2007. About Dragon Capital Partners DCP is the private equity arm of Dragon Capital, a leading Ukrainian financialinstitution specialising in the provision of investment banking, securitiestrading, asset management and private equity services. Dragon Capital hasreceived the "Best Equities House in Ukraine" award in 2002, 2004, 2005, 2006and 2007 by "Euromoney", a leading financial journal. DCP professionals combine extensive local knowledge and expertise gained throughsubstantial investment activity in the Ukrainian private equity market accross awide spectrum of industries, including real estate. This information is provided by RNS The company news service from the London Stock Exchange