Kimberly Enterprises Regulatory News (KBE)

31 Jul 2006 10:39

Engel East Europe N.V.31 July 2006 31 July 2006 ENGEL EAST EUROPE N.V. Additional project in Romania for the development of 500 residential units and commercial centre Engel East Europe N.V. ("Engel East Europe" or "the Company"), the AIM-listedCentral and Eastern European ("CEE") residential property developer (EEE:L), ispleased to announce, again this week, that it has signed a memorandum ofunderstanding ("MOU") for a percentage deal for a second new project in Romania,on the shores of the Black Sea in the Constanta region, where the companyintends to develop a residential neighbourhood consisting of approximately 500residential units and a commercial centre. The Company believes that the projecthas total projected sales of €80 million and will be built in several stages. The Company has identified the potential of the residential market in Romaniaand, following a thorough investigation process, has established an operatingcapability enabling the Company to proceed with this second project. The Company intends to develop a residential project on the acquired land, witha total area of approximately 50,000m2 and a commercial centre with a total areaof approximately 10,000m2. According to the terms of the MOU, the main part ofthe payment for the land will be a percentage of the proceeds from the sales ofthe project. However, an advance of €2 million will be paid on account on thesigning date. Signing of the final agreement is subject to further due diligence by theCompany which will start within the next few days. Engel East Europe is in continuing negotiations for the purchase of additionalparcels of land for the development of thousands more residential unitsthroughout the CEE Region, both in countries it is already active in as well asin new countries. Jacob Engel, founder and Executive Chairman, said: "We are delighted to announce this second development project this month inRomania - which we believe is one of the most promising areas for residentialprojects - with projected scope of sales of about €80 million. Entering Romania with this second project is a result of our long involvement inthe CEE residential property market and our analysis of the potential markets inthe region. This complements our strategy of further expanding our activities inboth existing and new potential markets and taking full advantage of theconsiderable growth opportunities for residential property development in theCEE region." Enquiries Citigate Dewe Rogerson Sally Marshak / George Cazenove / Hannah Seward +44 20 7638 9571 Notes to editors Engel East Europe listed on AIM in December 2005 and is an internationalresidential property developer incorporated in The Netherlands. The Companyoperates in CEE Region and has various developments in Hungary, the CzechRepublic, Poland, Bulgaria and Serbia, as well as operations in Germany andCanada. In addition to this project and the project announced last weekconsisting of several thousand residential units in Romania, Engel East Europeis currently involved in the development of more than 11,000 residential unitsand is in negotiations to purchase land for the development of thousands ofadditional units throughout the CEE Region. This information is provided by RNS The company news service from the London Stock Exchange